When do you plan on buying a baller car?
I know in NYC you won't need a car much, but once you're raking in $300k+ a year, why the hell not buy a nice car? Has to make things somewhat convenient. If you live anywhere other than NYC, you most likely will be buying a car your first year, right? What kind of car will that be?
About when can ibankers buy their first luxurious ($90k-$300k) car?
I know MDs who still take the train. Honestly, I think people wait till they are 2rd year associates or VPs before they buy a car, and that is only because they move out of the city......they don't drive it into the city.
If our in banking, what is the point of buying a car that you can never drive. Just borrow a friend's car or rent one for the day when you need it.
On the "Top 10 Wall Street Cars," the number one spot was the subway. It's there for a reason.
"If you live anywhere other than NYC, you most likely will be buying a car your first year, right? What kind of car will that be?"
Most of my buddies who took banking jobs in LA, the Bay Area, Houston, etc. ended up buying entry level luxury cars their 1st year - BMW 3-Series, Audi A4, Lexus IS, Mercedes C-class, etc. etc.
lease a zonda for the summer
Hopefully I feel like I can drop $70k on a car before Cadillac gets rid of my CTS-V wagon...I'll do it, I swear.
Regards
If you only make 300k a year and spend 100k on a car, you definitely qualify as a "baller".
That is not a compliment.
agree.
you wont care about cars as much when you get a little older.. I am sure its big now as you dont have much or drive a piece of shit. However, once you buy house, get married, kids etc etc.. other things just become more important
How much do you think you need to make to buy a 100K car? If you're a car nut spending 100K on a car when you're making 300 isn't that bad.
^^^See, that's the problem with kids today...no sense of expenses.
and I realize I didn't answer the question in my above posts....the reason you won't be buying that 100K car when your making 300K is because you will have better things to spend the money on or your you donate it to the "Just been fucked up the ass by my firm" fund for later use.
It's scary to think some of these people actually work in finance...
If you make 300k (all-in) in a year in NYC, thats 150 after tax. Anywhere else its probably around 180-200 after tax (just guessing). To spend half (or more in the case of NYC) of that on a car is fucking retarded. Especially after two years you're probably going to get an MBA. If anything Id lease a car for 2 years, and only if I wasn't living in NYC.
On that logic, someone who makes $100K before taxes, shouldn't even be able to afford a 3 series BMW. You could barely even afford a nicely specced Nissan Altima SL.
Not trying to contest what you think is needed. Growing up, I observed friends and family buy cars up to 50% of their salary and they are all doing just fine.
Shit, I was a little tired when I was writing this and might have completely ignored car loans. Regardless, I wouldn't do it, I'd just get a lease.
If you are making $100k, then you probably should be getting something like an Altima. Just because you can get approved on a loan for a car, doesn't mean that you should.
If your total family income is $100k before taxes, you should not be buying a 3 series BMW. You should probably be leasing a car.
Growing up, our friends parents all drained their homes of equity to finance the "doing just fine" lifestyle.
i bought an entry level luxury car with my internship money (and a loan) in my sophomore year. IMO that was the perfect time for it and i don't think i will ever again get to have as much fun with a vehicle. I kinda feel that i i got that stage out of my system, at least until the midlife crisis.
And you wonder why analysts and associates in NYC don't have cars......
Nobody needs a car in NYC. We know this.
Pussies. 300k not safe enough to buy a 100k car... other people save for years to buy their dream car.
Over here in Europe, bankers used to buy 911s as Associates. This has changed too in recent years. Too many reasonable nerds without balls in the industry. Also there is the feeling of shame and not wanting to appear like a greedy stereotype banker. Man up and get some backbone. If you want to enjoy a nice car while you are still young, make it come true. Your life as a monkey is sad enough.
From your other thread, I take that your healthcare background implies you were pre-med. It seems like you certainly had a change of heart recently lol. (I guess it's a bit unfair to equate materialism with finance and the opp for medicine).
Haha you are correct! I was pre-med. I was always somewhat materialistic, but willing to sacrifice materialism for the satisfaction of taking care of sick people, but I just think I would be a better fit in consulting. This thread was just for fun - I don't really plan on being a banker (I hate sleep deprivation).
Are we talking about buying a car straight up or financing it over 3-5 years? I think a lot of younger people with nice cars don't pay for them straight up -- they finance them and just spread the costs out over a few years. By the time they have paid for the car in full, they'll likely have been promoted to a new salary grade anyways.
Given the volatility of jobs in finance, you should only buy a nice car if you can pay with cash. Why be stuck with a huge monthly payment weighing you down? I've never been let go from a job, but I've seen plenty of junior finance professionals that have made risky moves financially (revolving debt, cars, houses/apartments, boats), only to be stuck with the consequences when they are laid-off at the next downturn.
Also, there is no point in buying a new car. Luxury cars depreciate very quickly. I bought a great car that was 2 years old with 18k miles and in mint condition for about half of what it cost new. I love cars, but there is no point of putting yourself in a precarious financial position for one.
Another approach to buying a car would be to buy a similar duration bond that approximates what your monthly payments would be. I have a former roommate who will only enter into a long-term agreement that requires him to make payments if he can fully offset it with a (relatively low risk) fixed income investment.
This might put me in the same boat as IlliniProgrammer, but I think buying a car shouldn't even approach 33% of your gross income.
I also am not a big advocate for loans, but that's just me. I guess my advice would be to keep as little income wrapped up in depreciating assets (Cars, Boats, etc) as possible with living comfortably.
To each their own.
^^^ I completely agree. If you live in Chicago or NYC and buy a "baller" car you are a complete idiot. Why not put that money in the market and watch it grow. Parking, insurance, gas, and the yearly depreciation really start to add up. Moved from Texas to Chicago and am currently selling my car, fuck driving in the snow....
Don't spend 100k on a car your first year in NYC, it will get messed up and be a pain in the ass. If you have a valet on both ends of your maybe it's worth it but other than that, don't go for it. You'll be so busy you won't give shit what car you drive to and from the 25% of your day that you're not in the office.
I'll be a first-year next year and I'm planning on leasing to keep it easy. They'll come get it when it needs repairs etc. and give you a loaner car which is a huge help. Turning in an A6 for a new BMW or Audi lease of some kind.
If you make $25,000 a month. You can afford $2000 on a car payment.
Let's assume you work in charlotte or something.
This.
Just lease...
A G37S coupe is like $400-$500 loaded.
Even if I were earning a million a year I wouldn't buy a car in nyc. It's simply faster and more convenient to subway or cab it. It would be such a huge pain in the ass to drive / park anywhere that it simply makes 0 sense to buy one. Plus, given that I'm a first year analyst now, much of my free time is spent plastered, so I'd really prefer not having to worry about trashing my nice car.
I'm 25, and have been extremely passionate about cars my entire life. But I live in NYC.
There really is no 'need' for a car, it's inconvenient, and it's a depreciating asset. You don't get rich by dropping 8k/yr on stupid shit when you're young.
fuck buying a car. I'd buy me a bad-ass custom made chopper and roll into one of those on my way to work.
You can lease an entry level luxury car for ~$400 a month + tax. I pay $430 including tax for mine + ~$90/month in gas + ~$110/month in insurance. So total car costs = $630 per month or around $7.6K per year which ends up being ~ 8% of my pre-tax base salary...
Obviously if you're in a place like NYC, Chicago, etc. then it's not a necessity and probably a stupid idea to even lease a car but if you are in LA, Bay Area, Houston, etc. then you will most likely need a car and leases are a good option.
If you're in Houston you will absolutely need a car.
Probably never, because I'm not that into cars and they're a poor investment. I'd rather put that money into real estate and buy a sweet apartment.
to OP: maybe about 6-7 years of being in the industry if things go well.
i plan on upgrading from my college days' car (2001 civic) sometime next year, currently a first year analyst. but by upgrade i mean spending 25 to 30K, probably will buy a 2009 bmw 335 or an audi A4, which for me are pretty nice cars. not spending 100K on a car till I am making at least 600-700k.
I am a huge fan of buying slightly used cars rather than leasing. The monthly payments are comparable and you can get some very nice cars with
[quote=happypantsmcgee] I am a huge fan of buying slightly used cars rather than leasing. The monthly payments are comparable and you can get some very nice cars with
Why would you spend $100k+ on a car? "because it's badass" isn't a good response. I'd rather buy a house and rent it out to make more money a la Paulson in Detroit currently.
Then you can have enough to buy your own plane. I think the nicest car I might ever consider getting that I consider expensive is that Hyundai Equus coming out or a Mercedes S550. That's about it. Besides, what's the point of having an Aston Martin or Ferrari if you live in NYC? I don't think there's enough space to really enjoy that type of car.
Hyunday equus is nice?
Have you seen it? Shit comes with an iPad, it's OBVIOUSLY nice
LOL
I feel like Argonaut is saying that because it has the Hyundai name. You have to look beyond the name and look at the quality; something Lehman Auditors failed to do LOL.
Yeah, I'm sure kids that pay 30K for a beat up Buick Riviera '74 with $15,000 rims on bald tires and shag rug upholstery also look at the quality...
Reading this thread makes me realize i've grown up a bit since college. I dont care about getting a nice car as much as I used to back then. Back in the day I wanted to get a Ferrari 360 or a Lambo Gallardo, but now im very satisfied with my pre-owned E46 3-series (modded of course).
I'm MUCH more focused on getting a nice apartment of my own instead of renting a crappy one, as I am now. Too many "Ballers" out there that lease brand new Bimmers and live in the ghetto. I'd rather be the guy that lives in a nice luxury apartment and has a decent pre-owned car.
Once I buy an apartment that has parking or a garage, maybe i'll upgrade to a 2003 m3.. they can be had for around 15k and are AWESOME cars. These exotics can be fun once in a while but they dont make you as happy as you think they would. I have several friends with ferraris, lambos, Rolls' and they are all pretty bored of their cars. These cars attract the wrong kind of attention. Do you think you will have hot chicks running up to you wanting to suck your cock because you pulled up in an enzo?? maybe once in a while, but most of the people are teenagers and older men trying to take pics of your car and ask what you do for a living.. that gets old real fast.
Fuck the cars, get a baller pad.. or if you can, get both..
btw pic of my buddy's stable. (he's not a banker btw)
http://i123.photobucket.com/albums/o317/ChristianFerm/18-2.jpg
[quote=Guest1655] btw pic of my buddy's stable. (he's not a banker btw)
http://i123.photobucket.com/albums/o317/ChristianFerm/18-2.jpg[/quote]
He's a rapper...
Business owner- Sub Prime credit industry
Guest - what does your buddy do? Does he need an accountant?
All kidding aside, my opinion is that buying a car with ~20k miles on it is the way to go. That way you can get an almost-new car that you can't (or shouldn't) buy brand new. I set myself a pretty tight budget and then find the best 1-2 year old car I can afford. My goal is to then hold the car for ~5 years.
My next car will probably be -34 years away and I'll go for a 2 year old 5 series, unless a new model catches my eye by then.
i thought german cars tend to give a lot of problems after 5-6 years, i have a feeling you can end up spending quite a bit on maintaining that 2003 m3
hyundai equus looks like a fucking tank, a nice comfortable tank though. i like the refrigerator in the back seat haha
My e46 is 2001, I spent about 2k last year on Maintenance. However nothing was broken. The key here is PREVENTIVE maintenance to avoid the HUGE repair bills that come from busted cooling systems, timing belts, pulleys/belts etc.. I expect my car to be relatively trouble free for years since I replaced most of the things that go wrong with these older e46 3 series.
I also go to a independent mechanic that specializes in german cars, and he charges about 1/4th of what the BMW Stealer would charge for a similar job.
Once your raking in £1m+ pretax you can maybe spend 100k on a car.
Equus doesn't look bad actually...comes with some pretty decent perks too
http://www.google.com/imgres?imgurl=http://www.hotautoriders.com/wp-con…
IT's James Hunt's favorite car too by the way
Sounds like Volkswagen Phaeton to me. I wouldn't expect a high resale value.
And any time celebs "like" something that is way off, usually it's because they are a paid spokesperson
Doesn't seem to make much sense in NYC or even London. I'm in Dubai so it's pretty nice, had a Jag for a few years and now a Lexus.
For all those saying "you should wait" or "100k is not enough, wait till you are VP and you are making....".
People are failing to realize the time you can MOST enjoy your car is when you are youngest. From experience (and this thread), the older you get, the less you care about cars. So logically, the best time to enjoy your car is when you are younger. In essence, that is when the car's value to you is its highest. The older you get, the less valuable cars get to you.
Now, obviously and unfortunately, you also have the least amount of money when you are younger. So the older folks have money, but don't care much about cars. While the younger folks care a lot about cars, but don't have as much money.
The best way out of this is asking yourself how much do I really care about having a nice car and living life while I'm young. If you care enough, go get your dream car...while you can still enjoy it the most.
Around end of second year analyst stint... 1993 Porsche 964 Turbo. can be had for around ~40-50k.
I'm a car nut, and I work hard to afford the things i like, its super easy for me to justify it. haha
Id rather get a 996TT for the same price
I used to ride this mothorized cart that my uncle built. It wasnt built for racing on the high way, but it could flip and you could ride it like a motorbike. Excellent if you are in a highly jammed urban area and are in a rush. And far more impressive to ride you selfmade car than buying some expensive nonsense.
You can also go fight bears with your bare hands and make your own shoes out of their skins. Now that's really impressive
Yeah, but you're telling all the chick's you only have 5 inches. Although it is a badass car.
How much do I need to my name to buy a nice car? (Originally Posted: 12/15/2010)
I think I need the Suze Orman show for this.
I have no concept of how much it takes to buy a nice car. Assume I have to make the insurance payments and everything.
I currently have a car that may be worth 13 or 14k. I'm not married and my main expense is Apt rent which comes out to about 8500/year. I have my eye on a lightly used Infiniti G37x Coupe for around 33k. How much do I need to be making per year and how much do I need to have to my name to comfortably afford this car? Also, how does financing/loans for cars work? Are they negotiable and is there a certain percent you need to pay down?
Sorry for being naive but answers would be appreciated.
for 33k you can get a 5 series thats lightly/moderately used (cheaper, actually) which id advise much more. if you want sports can advise on others
Don't be a moron.
You already have all the car you need if it's worth $13,000. If your rent is $700 a month, why would you want a car payment equal to your rent? Invest your money and do yourself a favor and read these:
http://www.wallstreetoasis.com/blog/sell-your-options-dearly-debt http://www.wallstreetoasis.com/blog/sell-your-options-dearly-wasting-as…
[quote=Edmundo Braverman]Don't be a moron.
You already have all the car you need if it's worth $13,000. If your rent is $700 a month, why would you want a car payment equal to your rent? Invest your money and do yourself a favor and read these:
http://www.wallstreetoasis.com/blog/sell-your-options-dearly-debt http://www.wallstreetoasis.com/blog/sell-your-options-dearly-wasting-as…]
Maybe the guy likes and enjoys cars? If he can afford to make the payment, why would he want to wait until he's 50 to buy it?
Illini,
I know earlier I told you I thought that you gave too much unsolicited advice.
For this one, I say fire away............
How much are you making a year? Where are you working? If you're a 1/2 year analyst buying a really nice car (to me) just doesn't make sense. If you're an associate or further up the chain, might as well spring for a car that will last you 3 or so years. Like short said, a used 5 series is a great car choice, or something equivalent. Edmundo's right about saving up money, but if you want to buy a car, are financially in the position to after putting a good amount into savings/investments, there wouldn't be anything wrong with it. I'd weigh your options though.
why the Eff would you want a RICER car like a G37??? I swear but everytime I see a g35/37 its driven by a DOUCHE! Get yourself a nice pre-owned s4 b6/b7. Btw a 13k should be a nice car as is!! My car is worth maybe 9k max and I consider it pretty damn nice. An m3 can be had for around 15k these days.
dude if you are or ever were an analyst...................
GET ON EXCEL AND ANALYZE
"The shit I see on this website..."
You should watch this Suze Orman video:
The guy is 45 years old, takes home $72,000 / year. He owns his home outright; he has $150,000 in liquid savings and $90,000 in retirement (so his liquid net worth is $240,000). Even with $240,000 in liquid cash Suze Orman says he's crazy to think he can afford a $120,000 car.
I apologize up front for any douchiness in this post. I'm aware that I am spoiled, just wanted some help with numbers...
Suze Orman time...
I agree the G37 can be douchey. I currently have a Subaru with about 20k miles on it and I was just thinking about an upgrade. I drove a 325i/A4 in college (thank you parents), and although I love BMWs, I was thinking a coupe could be cool and the z4, TT, sc430 are all out of my price range (although I havent actively searched for anything used). I have no student loans, around 35k in liquid savings made from work/investing/poker, make 65k a year and will be up for a promotion in a few months that would take me close to 100k. I live in a warm climate all year round with a 10-15 min commute to work every day and have very little in the way of expenses. I'm 1.5 years out of college and don't think I'll be moving any time soon.
Can I afford it?
According to this site you need to be making at least $300-400K a year to buy that car. Sorry.
seriously though save your cash
Yea, if you can't pay in cash I would just wait. Besides, you pay more in the long run with payments...
Dude, if you can put down at least a 20% down payment and you can get a loan for 3% or less, go for it. If your job is secure, and you like cars so it will make you happy, why not? You have a good amount in savings. Enjoy your life.
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