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Interesting question - Friend of mine just got a job at a hedge fund and asked me what kind of car he should get? Then we got to discussing American vs. Foreign, fancy vs. economy and how it would be viewed at a hedge fund.

My Views -

American vs. Foreign - If you're in the midwest, you might get some flack for not having an American car, what do you guys think?

Having a nice car - I said to hell with having a nice car and that an economy car (e.g. Honda Civic) would work and no one would care (people would probably view it as good value). Maybe in PE where there is more snobbery or banking where it is client facing they would want the fancier stuff but not at a HF.

Comments (43)

 
Mar 18, 2016 - 2:17pm

you're on the right track but I would say Ferrari 250 GTO (at least one '62 model) instead of Bugatti or take your cash elsewhere. :)

"I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. " -GG
 
Mar 18, 2016 - 6:28am

If he's like 24 make sure he at least has decent $$ saved up. Nothing makes you a slave to your job like buying a bunch of stupid shit like fancy cars, boats, etc., which depreciate by half as soon as your ass hits the seat and drive it off the lot (or take for a cruise).

If this is NYC, then most people just use public transportation or Uber/taxi anyway.

 
Best Response
Mar 18, 2016 - 7:03am

your friend sounds like a royal douche canoe. so my vote goes for a prius or smart car

 
Mar 18, 2016 - 9:20am

Assuming this is a serious question, here is a serious answer:
1. If he's in any city, especially NYC, don't get a car. Take public transportation and Uber if necessary. Higher insurance cost and insane garage cost and the standard vehicle depreciation will make it more expensive than taking Uber every day. Street parking runs decent risk of denting and very high risk of parking tickets in NYC.
2. If he's out in the suburbs somewhere, like anywhere in Connecticut or New Jersey, a certified pre-owned 1-2 year old BMW 3 Series, Audi A4, Infiniti Q50, Lexus IS, or Mercedes C300 with under 20k miles can be purchased for around $30k. The warranty on a CPO car often goes up to 5 years from manufacture date or 100k miles, this is far superior to a new car warranty. Do NOT buy a new car, you just look stupid for taking the $15-20k first year depreciation at the Analyst level.

Also nobody is going to care if he buys a used Toyota or Honda. At the end of the day, what matters is quality of work, not quality of ride that nobody else is the firm is going to be sitting in anyway as they'll have their own vehicles.

 
Mar 18, 2016 - 10:16am

ThinkMacro:

Assuming this is a serious question, here is a serious answer:
1. If he's in any city, especially NYC, don't get a car. Take public transportation and Uber if necessary. Higher insurance cost and insane garage cost and the standard vehicle depreciation will make it more expensive than taking Uber every day. Street parking runs decent risk of denting and very high risk of parking tickets in NYC.
2. If he's out in the suburbs somewhere, like anywhere in Connecticut or New Jersey, a certified pre-owned 1-2 year old BMW 3 Series, Audi A4, Infiniti Q50, Lexus IS, or Mercedes C300 with under 20k miles can be purchased for around $30k. The warranty on a CPO car often goes up to 5 years from manufacture date or 100k miles, this is far superior to a new car warranty. Do NOT buy a new car, you just look stupid for taking the $15-20k first year depreciation at the Analyst level.

Also nobody is going to care if he buys a used Toyota or Honda. At the end of the day, what matters is quality of work, not quality of ride that nobody else is the firm is going to be sitting in anyway as they'll have their own vehicles.

Agreed. If you're making HF money in NYC, might as well Uber everywhere. Dated a rich girl recently and she didn't even have a car--just Uber-ed everywhere. It's basically like having a private driver. No parking hassle is also amazing.

Array
 
Mar 18, 2016 - 9:42am

This is going to sound insane, but he should buy whatever car HE likes and can afford.

make it hard to spot the general by working like a soldier
 
Mar 18, 2016 - 9:43am

Bro, M3 is to small. I would recommend at least 5 series, especially if your going out with clients. Lease and get a maintenance plan; its worth at least 10k a year if you plan on going to the dealer.

528
Low maintenance, most economical to maintain

535
Lots of parts from the 6 series; a terrible car to own.
Recently had a $2k brake job (normal scheduled maintenance), did my girl's car the same day Nissan ($700)

550
Love this car, however many reliability issues, the cost between this and the 535 is small, but v6 vs v8 both have twin turbos. Going to need a beater car when its at home (the shop).

M5
At this point you get a 911 / Tesla / GTR etc.

PS Most doche canoes fall apart in 3-4 years, just look at the resale value. Make sure what ever he gets, there is enough for a new paddle in 2yrs.

 
Mar 18, 2016 - 9:56am

Woah woah woah, hold on, hold on. Have we just jumped from the bag selection thread right to the car selection? We have not yet defined the underwear brands that go with each financial role. We have already selected the bag, now we discuss the underwear, then the escorts, then the condoms (Trojan XXL for PE MD's no doubt) and then we get to the cars.

You killed the Greece spread goes up, spread goes down, from Wall Street they all play like a freak, Goldman Sachs 'o beat.
 
Mar 18, 2016 - 10:51am

Obviously dependent on financial situation / how much you want to spend on a car (or if cars are a big deal to the person), but I like a used M3 (~3 years) that is in good shape. Let the previous owner handle the high upfront depreciation and look for a M3 with less than 20k miles given the relatively high maintenance costs associated with an older version.

 
Mar 18, 2016 - 11:35am

Nothing says Overcompensating Douchebag like owning a V-8 Diesel F-250 that's built to Roll Coal.

That's my vote!

 
Mar 18, 2016 - 1:28pm

It truly gets down to the comfort and amenities in the back seat compartment areas. If it has appropriate climate controls, plush leather, and a TV he will be more than content as his driver drives him to the office and golf course.

Get your facts first, then you can distort them as you please.
 
Mar 18, 2016 - 2:06pm

Why would you take flak for not having an American car if you're in the Midwest? I live in the Midwest. Unless you're living in rebel flag territory no one gives a crap.

"Successful investing is anticipating the anticipation of others". - John Maynard Keynes
 
Mar 18, 2016 - 2:21pm

tell him to buy a 1957 Ferrari 250 Testa Rossa. If not that, at least a 1965 Shelby Cobra 427 Roadster. Either of those will add a few inches to his ... street cred.

"I'm talking about liquid. Rich enough to have your own jet. Rich enough not to waste time. Fifty, a hundred million dollars, buddy. A player. Or nothing. " -GG
 
Mar 19, 2016 - 2:49am

Don't buy a truck. That's the worst advice I've ever read. Bad fuel economy, they look like crap, finding parking is a nightmare, everyone will ask for help moving, and I don't know of a single woman that doesn't think they're douchey-- at least in the context of living in a city, working at an HF and then dropping $50k. Honestly, what kind of freight are you hauling to this HF job that requires a truck?

 
Mar 20, 2016 - 6:26am

Look out for a 1st gen Dodge Viper RT/10 or GTS. These cars are pretty cheap these days but won't be for much longer IMO. I believe they will increase in value and will be a very popular collector's item. If you have it as a weekend car and appreciates in value, it can be a cheaper car to own than a Prius or IlliniProgrammer 's rusty honda!

Colourful TV, colourless Life.
 
Apr 29, 2016 - 8:00am
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