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      03-13-2014, 02:44 AM   #1
kramsterman
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True cost of Ownership

I am trying to get myself into a lease of an F80 M3 and was hoping to get some help on whether or not I can afford it. I know I know, if I'm asking whether I can afford it or not, I probably can't. My total monthly expenses right now are about $2k.
From what I have read a good estimate for a lease will be around $850 + $250 for gas? + about $200 a month in insurance. If I don't plan on saving any money, and am bringing in around $4,000 a month, can I afford an M3? Am I missing anything?

Positive or negative, would love to hear any feedback you can give me.
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      03-13-2014, 04:06 AM   #2
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$200 for insurance? I'll be paying £30, so closer to $50.
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      03-13-2014, 06:30 AM   #3
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Well you can afford it, but you're not putting away much either. I think there are several other variables like age/goals/job security etc. that should be factored into your decision as well. Personally I wouldn't do it with those numbers, but to each is their own and only you can decide what's more important to you

Good luck with your decision!
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      03-13-2014, 07:53 AM   #4
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At $4K/mo of income and $2K in expenses already, you are spreading yourself kind of thin. I would urge you not to mess with the M at this point, since according to your calculations, you will be left with only $700/month for any other needed expenses.

Wait for a couple of years and pick one up as a CPO. In the meantime, build up your savings.
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      03-13-2014, 07:55 AM   #5
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I don't think you can get a lease of $850 per month right now or in the near future. You probably have to wait until the invoice+ pricing is back.
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      03-13-2014, 08:19 AM   #6
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Quote:
Originally Posted by m3ct View Post
Well you can afford it, but you're not putting away much either. I think there are several other variables like age/goals/job security etc. that should be factored into your decision as well. Personally I wouldn't do it with those numbers, but to each is their own and only you can decide what's more important to you

Good luck with your decision!
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Originally Posted by filip75 View Post
At $4K/mo of income and $2K in expenses already, you are spreading yourself kind of thin. I would urge you not to mess with the M at this point, since according to your calculations, you will be left with only $700/month for any other needed expenses.

Wait for a couple of years and pick one up as a CPO. In the meantime, build up your savings.
agree with these guys. I personally would not do that with that kind of income. To me, I would want to make closer to 6k a month after taxes and retirement contributions to consider an m3 at current prices.

If you do decide to do it, go light on the options to keep that cost down
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      03-13-2014, 09:21 AM   #7
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For me personally, I don't like to lease because I'd like to keep the car as long as I can. If you can't afford one, leasing is the way to go and if you like to change cars every so often. Leasing is basically renting and you can't say it's your car. I like the fact I can call it my OWN and modify it as I see fit. Leasing is a big liability and has too many limitations.

Once you start saying "Can I afford it?", you probably can't if you're doubting yourself, then leasing would be your best bet.
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      03-13-2014, 10:41 AM   #8
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You can probably afford it, but do you really want to spend 20% of your paycheck on your car payment?
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      03-13-2014, 10:56 AM   #9
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I don't think you can get a lease of $850 per month right now or in the near future. You probably have to wait until the invoice+ pricing is back.
You can get 850/month on 65.5K MSRP lease if you max out MSDs (~$6000) and remember you get your MSds back at the end of the lease
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      03-13-2014, 10:59 AM   #10
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Quote:
Originally Posted by kramsterman View Post
I am trying to get myself into a lease of an F80 M3 and was hoping to get some help on whether or not I can afford it. I know I know, if I'm asking whether I can afford it or not, I probably can't. My total monthly expenses right now are about $2k.
From what I have read a good estimate for a lease will be around $850 + $250 for gas? + about $200 a month in insurance. If I don't plan on saving any money, and am bringing in around $4,000 a month, can I afford an M3? Am I missing anything?

Positive or negative, would love to hear any feedback you can give me.
I would definitely do it if I were you but then again I do not know what your job situation is like. If you have low job security then perhaps not
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      03-13-2014, 11:40 AM   #11
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I would definitely do it if I were you but then again I do not know what your job situation is like. If you have low job security then perhaps not
You give me hope, thanks! Im a 22 year old entrepreneur. Cars and women are really the only things I care about lol, I just don't want to be a poor man If I do end up pulling the trigger.

Are the expenses I listed pretty accurate?
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      03-13-2014, 12:25 PM   #12
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You should buy my e92 for about $28k and enjoy the hell out it, save some money and jump to a CPO M3/M4 later. God forbid you need money for something else!! Like you get someone pregnant in the back of that M3! LOL
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      03-13-2014, 12:46 PM   #13
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Originally Posted by kramsterman View Post
You give me hope, thanks! Im a 22 year old entrepreneur. Cars and women are really the only things I care about lol, I just don't want to be a poor man If I do end up pulling the trigger.

Are the expenses I listed pretty accurate?
Did you put your "women expenses" in your list of expenses lol girls can get pricey. Other than that your expenses look cool, as long as you budget yourself and pay attention to monthly expenses/income and also I do not know what your saving goals are.

My recommendation is to play with excel and make a budget you will be comfortable with.

Since you're an entrepreneur I assume you have your own business? If so you could write off the lease payments for taxes which is a huge advantage
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      03-13-2014, 12:56 PM   #14
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Originally Posted by Powaup View Post
Did you put your "women expenses" in your list of expenses lol girls can get pricey. Other than that your expenses look cool, as long as you budget yourself and pay attention to monthly expenses/income and also I do not know what your saving goals are.

My recommendation is to play with excel and make a budget you will be comfortable with.

Since you're an entrepreneur I assume you have your own business? If so you could write off the lease payments for taxes which is a huge advantage
My women expenses are low....who knows what will happen if I get an M3 tho! Yes I own my own company. As far as writing off a car, is there more to it then just being able to write off gas expenses?
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      03-13-2014, 02:41 PM   #15
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Quote:
Originally Posted by kramsterman View Post
My women expenses are low....who knows what will happen if I get an M3 tho! Yes I own my own company. As far as writing off a car, is there more to it then just being able to write off gas expenses?
I would discuss the tax advantages with your tax accountant.
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      03-13-2014, 02:43 PM   #16
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Quote:
Originally Posted by kramsterman View Post
My women expenses are low....who knows what will happen if I get an M3 tho! Yes I own my own company. As far as writing off a car, is there more to it then just being able to write off gas expenses?
Here you go: http://www.irs.gov/publications/p463...blink100034045

If you lease a car through the company and provide it to the employee (yourself), the value of the lease (let's say $1,000/mo.) is taxed for you as a taxable income, which is still better that forking the whole $1,000 out of your own pocket. While at the same time, this payment is deducted from the profits of the company (and lowers company's taxes) be being an operational expense. Win-win.

Please, someone, correct me if I am wrong
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      03-13-2014, 05:25 PM   #17
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Quote:
Originally Posted by filip75 View Post
Here you go: http://www.irs.gov/publications/p463...blink100034045

If you lease a car through the company and provide it to the employee (yourself), the value of the lease (let's say $1,000/mo.) is taxed for you as a taxable income, which is still better that forking the whole $1,000 out of your own pocket. While at the same time, this payment is deducted from the profits of the company (and lowers company's taxes) be being an operational expense. Win-win.

Please, someone, correct me if I am wrong
From what I understand, only the actual business portion of the car used can be deducted. I work from home and mainly only drive for fun . Although I could make it up It would have to make sense still. So if 25% of my driving was for business I could deduct $250 a month...Right?
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      03-13-2014, 05:32 PM   #18
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Quote:
Originally Posted by kramsterman View Post
From what I understand, only the actual business portion of the car used can be deducted. I work from home and mainly only drive for fun . Although I could make it up It would have to make sense still. So if 25% of my driving was for business I could deduct $250 a month...Right?
Here you go: http://www.jklasser.com/articles/employer-provided-car/
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