Buying Nice Cars as An Analyst
What are your thoughts on an analysts purchasing expensive cars? I have a friend who's a first year analyst that just got a Porsche Cayman GTS and it is actually incredible. The monthly payments are a lot, but pretty manageable on an analyst salary. Was this a dumb thing to do? How does this look to superiors and other people in the workplace?
Who cares how it looks? If you’re into cars definitely go for it. You already work like a slave for a bank, no need to let them dictate what kind of car you drive. Maybe you should ask your MD what kind of panties he would prefer you to wear also
God dammit, Pondy's the coolest!
Definitely not manageable in any major city with a social life but who cares, spend the money how you want, you are ultimately the one working for it. If you like to use your money to look like a giant douche with a small dick then that’s your perogative
Bunch of sour people here. If I saw a first or second year analyst rolling around in a Porchse I would likely just just make fun of them non stop. They are clearly insecure and think that’s going to get them girls. As someone said below, no one really sees you in your car unless you’re leaving.
Also, it’s just a giant waste of money. Any analyst paying 800+ a month on a car payment is wasting a large portion of your take home pay and must have no social life to afford that car payment and rent
"As someone said below"
@ me next time, slugger.
.
Save the money up.
Step 1: open up ecommerce biz Step 2: lease cars Step 3: deduct on tax returns Step 4: invest the Porsche money
What do you mean by ecommerce biz? I've read similar comments on financially independent forums..
Dude, you can get more girls with a $5,000 watch than you can with a $150,000 car. Think about it. You're at a bar. That car is sitting out in the parking lot. Nobody knows you have it unless you are talking about it, and at that point, you seem like an arrogant ass. You go the same speed as everyone else in traffic, and are paying enormous insurance premiums each month. Then, think of the watch. It's a LOT cheaper. Most girls will recognize the brand in a bar. It's with you at all times, giving you a huge confidence boost that everyone can see. You don't have to announce it, and you can use the money you save to buy a nicer house, clothes, and experiences. It's all about perspective, man. That's how I see it. Maybe your friend likes the fact that many bystanders check his car out.
Should buy used cars and not brand-new cars.
100% agreed. I actually wrote a whole column about this, but nobody cares about those "intermediate prestige" vehicles lol. Unless you're buying one of the cars you listed, I think spending that much $$$ on a car is absolutely stupid
Lmao my man always bringing up getting girls. Did you consider, that maybe, he got the car because...he enjoys it and isn't using it as a vehicle (pun intended) to get girls?
Bro if you're inside of a car you can't admire it's beauty from the outside, and nobody buys an exotic car without thinking of getting girls.
Cars like that are dick magnets anyway.
Gave me laughs. Love this game. It's great to see people still appreciate it
Honestly best piece of advice than young professional can get before seeing the first big pay
Not too big of a cayman fan. It's all about the 911 in my opinion.
100%. The Cayman is a complete waste of money. Not good bang for buck. The 911 is incredibly fun and an amazing value all things considered. Punches WAY above the price point IMO!
911 is an absolute beast of a car. I'm buyin one someday for sure
As someone who grew up around a massive amount of wealth, materialism brings no long-term fulfillment. Plus, the payment on that car is an awful financial decision. What happens if the cycle turns and he is systematically laid off?
Better to save that money or purpose a portion of it to self improvement. Learn a language, a martial art, travel, etc... Invest in yourself.
One shouldn’t really get a car based on what you think others would think of you. But from a practicality standpoint, getting a nice car as an analyst doesn’t make much sense financially and from a usage perspective.
But if you really DO care what more senior people will think... I think they’ll go “nice car”, and then proceed to think “this kid probably has a family that’s wealthy...”. Depending on the background of the EDs and MDs, if the kid messes up at work, it could work against him like “maybe he should spend more time getting his shit together than messing around in nice cars”. I think there’s more downside than upside.
I think where there’s upside is when a person is genuinely into and knows cars as a hobby, and maybe they touched up old vintage or muscle cars.
Buying a car like that as an analyst is a great way to get on the hedonic treadmill. Go ahead spend 50, 70, 90 grand. The MDs won’t care, but you’ll be tethered to the income from finance and that limits your ability to make moves.
This. Have fun being another sad, divorced MD who hasn't saved a dime, Saddest thing out there
Always save first, then spend.
Stop describing my dad.
Until you are further in your career, pay off debt/loans/save up what you are able to. I like driving sport cars, they're fun and exciting. However, maintenance fees + insurance + payments = financial disaster for someone who is young.
I suggest have some comfortable savings and recurring income from investments before buying a Porsche...but it's your money so your call.
I don't want a girl that's going to be attracted to me because of my car
(I'm just waiting for someone to reply: "Then you won't get a hot one")
I don't see how this is practical unless you are an investment banker in some other city besides New York or Chicago, if he can do it though and can afford it why the hell not.
I was thinking about getting a 718 Cayman and I'm in a smaller city getting paid same as NY. But if you just take all of the down payment, monthly payments, bump in insurance costs, maintenance, depreciation, etc., it just becomes disgusting. I took all of those payments and allocated them to a ton of other things I could do with the money and your QoL improvements are so much better.
Yeah, plus I've heard from rich people that it just really is a waste of money to many of them. and it can get boring. I know someone who had to get rid of his Ferrari because it hurt his back.
It just depends on if you are really passionate or not .
i drive a $4k bmw
if you are serious - check out hiddenrides.com
ITT: Analysts and students saying, "Go for it" ; Associates and up urging caution
paging IlliniProgrammer Rusty Honda
Just as a general rule of thumb you should be saving as much of that 1st year income (incl. bonus) as possible just in case. If you really like the car then try to hold out until your associate stint when you'll have more income to play with and more time to enjoy the car.
I would pay 100k to buy a nice 911 used Porsche over any Aston / lambo assuming they’d cost me the same. I don’t buy cars thinking exclusively on the amount of girls I will get but because I appreciate the beauty of the legendary Stuttgart car, it’s speed and smoothness and because it has been my dreamed car since I was a child. I already have a girlfriend to which I’m loyal and have no need to attract gold diggers
In respond to the guy saying that you should buy a watch over the Porsche I’d say buy both the watch and the car if you truly want them but do not buy anything to impress, that will cost you big in the future
One of my mentors is a 29-yo law firm associate, super normal looking in appearance, I assume makes $250k, ubers everywhere, really nice apartment. He has a stunning model-tier Ivy alum girlfriend. A flashy car in your 20s just seems like a magnet for stress and attracting the wrong kind of women.
250k doesn’t go that far in NYC. Also low comp for a 29 year old lawyer
This is beyond stupid.
Don't buy one, lease one instead.
It's your money, do with it what you please.
I'm a car guy myself and when I could afford it, I went out and got the sports cars I wanted. Not for girls, not for attention (though those both are inherently part of exotic car ownership) but because I love cars.
Yes, you may sit in traffic next to the guy in the Rav-4, when you are in traffic, but you're siting on fine, hand-stitched nappa leather while they're farting on vinyl.
Most importantly, don't let college students with a lot of time to post on forums tell you what to do with your well-earned income...
Also, there are a ton of things you can do in and around/on a car with a woman/women that you can't do with a watch.
Buy both, cover all your bases...
I know more about cars and specifically Porsches than I do about finance, despite being an AS3 with a cfa and mba (none of which is that impressive but just trying to make a point). I can tell you the detailed changes the GT department made to the 4.0 litre in the 991.2 gt3 vs the 991.1 RS that enable the extra 200 rpm for the 9k redline. Suffice to say, I really want one but I also know it would be stupid to buy a car worth anything more than 30% of your gross income and that's assuming you buy it near the bottom of the depreciation curve.
If Porsche went all electric and released a car that beat the 911 in every metric, and you could afford it, would you want one?
No, i’m a purist. i’m OK with having a car that doesn’t accelerate as fast as a Tesla if it provides me the sensation of driving - the sounds, smell, vibration makes it more of an evocative experience. same reason why I would prefer a manual transmission vs pdk
Very curious as to what city this is in
As a car guy, I wouldn't do this as an analyst. Like even you're in a lower tier city and making a disproportionately larger amount relative to where you are, consider that you're still not making all that much relative to your hypothetical savings / rainy day fund goals. At least wait till associate to do this. I am a staunch believer in spending money towards things that make you happy and if a sick car is one of them, then go for it, but don't do it as the lowest rung on the ladder given you don't know where your life will go after. You don't want to end up in a situation where you're stuck paying car payments and you end up doing another job where you can't afford them.
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