Should i Buy a new car

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rsbv
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Should i Buy a new car

Post by rsbv » Mon Aug 04, 2014 9:46 pm

So here's the situation, I'm 38 yrs old physician, married 4 yr old daughter. I make 400K+/yr. I have 6 months of emergency funds saved up and I started my retirement investments just 2years ago and just opened Roth for me and my wife and taxable account at vanguard recently. I also have 529 for my child started last year. Im currently maximizing 401K and did maximize Roth for 2014. I also plan to have significant monthly taxable investments ( close to 10K/mnth). Biggest expense I had recently was, when i build a home, spend significant money in downpayment, moving, buying all new furniture etc ( close to 200K) and have mortgage loan of 668K on a 5/5 ARM. I am also paying extra 2K towards early payment of mortgage every month to pay off in 15 years.

We have 2 cars both fully paid- My wife drives a Audi SUV bought 2 years ago and i drive a Camry that i bought 7 1/2 years ago. It runs fine, gets me from point A to B without any problems. I have been hesitant to spend any money at this time on any major expense and focusing on retirement investment. But I have heard some comments from few friends lately ( even though I honestly don't care much) that this car doesn't suite to my status.

I was looking at BMW 5 or 6 series used, about yr or 2 old less than 20K mileage around 50-60K. Should I consider buying it? the way it stands right now i don't have extra cash lying around for this expense so it would either come from my emergency fund or from my taxable investments? i sure can easily afford monthly payments but cant buy it cash outright.

livesoft
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Re: Should i Buy a new car

Post by livesoft » Mon Aug 04, 2014 9:50 pm

Yep, buy a new car. Get a Corolla and see what your friends say.

Are you seriously writing that if your friends said go jump off a cliff, that you would go jump off a cliff? When your kid(s) are teenagers, how are you going to teach them not to succumb to peer pressure?
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rsbv
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Re: Should i Buy a new car

Post by rsbv » Mon Aug 04, 2014 9:53 pm

Livesoft.. Question is here pure financial so stick to that if u can. I know how to handle peer pressure and not asking for that advice.

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JMacDonald
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Re: Should i Buy a new car

Post by JMacDonald » Mon Aug 04, 2014 9:56 pm

rsbv wrote:I was looking at BMW 5 or 6 series used, about yr or 2 old less than 20K mileage around 50-60K.

That 50-60K will look a lot better in your retirement account than in you driveway.
Best Wishes, | Joe

livesoft
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Re: Should i Buy a new car

Post by livesoft » Mon Aug 04, 2014 9:57 pm

rsbv wrote:Livesoft.. Question is here pure financial so stick to that if u can. I know how to handle peer pressure and not asking for that advice.

Pure financial: You are putting about $120K a year into a taxable account.
Last edited by livesoft on Mon Aug 04, 2014 9:58 pm, edited 1 time in total.
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Busting Myths
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Re: Should i Buy a new car

Post by Busting Myths » Mon Aug 04, 2014 9:58 pm

JMacDonald wrote:
rsbv wrote:I was looking at BMW 5 or 6 series used, about yr or 2 old less than 20K mileage around 50-60K.

That 50-60K will look a lot better in your retirement account than in you driveway.

Especially after it compounds for 20-30 years.
RSBV: get a loan from Penfed or Digital Credit Union. It is your money. Your post sounds like you are looking for validation which you really won't get here when thinking of buying a used $50-60k BMW
Last edited by Busting Myths on Mon Aug 04, 2014 10:00 pm, edited 1 time in total.

toblerone
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Re: Should i Buy a new car

Post by toblerone » Mon Aug 04, 2014 10:00 pm

I'm in a similar situation with 16k saved in a separate savings account toward a car that will cost 25k a year from now. I could pay cash using taxable account or E-fund now, but I'm determined to pay cash and not use these accounts, so I will try to save and not raid these accounts.
I would dial it down from a 5 or 6 series BMW if you want to buy soon, because you don't have the cash.

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TxAg
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Re: Should i Buy a new car

Post by TxAg » Mon Aug 04, 2014 10:01 pm

How about $35-40k on a car that isn't a BMW

Busting Myths
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Re: Should i Buy a new car

Post by Busting Myths » Mon Aug 04, 2014 10:03 pm

TxAg wrote:How about $35-40k on a car that isn't a BMW

But then it isn't a BMW....

rsbv
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Re: Should i Buy a new car

Post by rsbv » Mon Aug 04, 2014 10:03 pm

Livesoft,
Im doing Aggressive savings because of lost years due to education and training. Again the amount of money I'm putting in my retirement account is based on calculation of how much i would need for my family at time of retirement + cushion of some extra money.
I wouldn't want to change that if possible as i do believe retirement savings is obviously more important than buying car for instance.
Sp let me rephrase the question- since i DONT have money lying around to buy the car, does it make sense to take a loan?? I hope now its more clear.
Last edited by rsbv on Mon Aug 04, 2014 10:06 pm, edited 1 time in total.

DSInvestor
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Re: Should i Buy a new car

Post by DSInvestor » Mon Aug 04, 2014 10:04 pm

Busting Myths wrote:
TxAg wrote:How about $35-40k on a car that isn't a BMW

But then it isn't a BMW....

which is a good thing.

DSInvestor
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Re: Should i Buy a new car

Post by DSInvestor » Mon Aug 04, 2014 10:06 pm

rsbv wrote:We have 2 cars both fully paid- My wife drives a Audi SUV bought 2 years ago and i drive a Camry that i bought 7 1/2 years ago. It runs fine, gets me from point A to B without any problems.

rsbv wrote:Im doing Aggressive savings because of lost years due to education and training. Again the amount of money I'm putting in my retirement account is based on calculation of how much i would need for my family at time of retirement + cushion of some extra money.
I wouldn't want to change that if possible as i do believe retirement savings is obviously more important than buying car for instance.
Sp let me rephrase the question- since i DONT have money lying around to buy the car, does it make sense to take a loan?? I hope now its more clear.


Your current car runs well. Why would you want to borrow money to buy a car that you don't need?
Last edited by DSInvestor on Mon Aug 04, 2014 10:08 pm, edited 1 time in total.

Set40
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Re: Should i Buy a new car

Post by Set40 » Mon Aug 04, 2014 10:06 pm

rsbv wrote:But I have heard some comments from few friends lately ( even though I honestly don't care much) that this car doesn't suite to my status.


This fact alone actually motivates me to continue driving my current vehicle if mechanically sound and avoid buying an expensive car.

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LAlearning
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Re: Should i Buy a new car

Post by LAlearning » Mon Aug 04, 2014 10:06 pm

Financial decision: do whatever you want. It wont matter probably.

Personal decision: I don't ever want to see a doctor that thinks he needs/deserves a BMW to suit his "status." You need to buy new friends...
Last edited by LAlearning on Mon Aug 04, 2014 10:08 pm, edited 1 time in total.
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cfs
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Re: Should i Buy a new car

Post by cfs » Mon Aug 04, 2014 10:07 pm

Don't buy it.

Thanks for asking. From a pure financial point of view (it is not my style to make fun of anyone, I have no sense of humor). Based on the information provided you are having no issues with the Camry. I believe that you want to purchase the BMW, but I see no good reason to buy another vehicle unless the current one was giving me troubles. Yes I know, this is a different point of view and this is not the answer that you are looking for. Just my two centimos.

Thanks for reading.
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Busting Myths
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Re: Should i Buy a new car

Post by Busting Myths » Mon Aug 04, 2014 10:09 pm

LAlearning wrote:Personal decision: I don't ever want to see a doctor that thinks he needs/deserves a BMW to suit his "status." You need to buy new friends...

I always ask my doctor what car he drives before I let him provide medical services to me. Don't you? :D

rsbv
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Re: Should i Buy a new car

Post by rsbv » Mon Aug 04, 2014 10:10 pm

DSInvestor wrote:
rsbv wrote:Im doing Aggressive savings because of lost years due to education and training. Again the amount of money I'm putting in my retirement account is based on calculation of how much i would need for my family at time of retirement + cushion of some extra money.
I wouldn't want to change that if possible as i do believe retirement savings is obviously more important than buying car for instance.
Sp let me rephrase the question- since i DONT have money lying around to buy the car, does it make sense to take a loan?? I hope now its more clear.


Your current car runs well. Why would you want to borrow money to buy a car that you don't need?


I agree, BUT it kinda does look worn out and is now almost 8 years old. Thats why I'm here to decide if i should wait a year or so, may be try to find a way to save that cash and then do it or just wait for this car to die on me and then think about it. May be i do need validation BUT about not buying...

sscritic
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Re: Should i Buy a new car

Post by sscritic » Mon Aug 04, 2014 10:11 pm

No. To both the original question and the new question that has replaced the original question. I just bought a new car. It represented 3.5% of my taxable account. By my reckoning, you should buy a new $60k car when your taxable account is $1.7 million.

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JMacDonald
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Re: Should i Buy a new car

Post by JMacDonald » Mon Aug 04, 2014 10:15 pm

OK, the last two car I bought I paid cash. However, I did finance my cars before that. If you can afford to make payments and not hurt your financial goals, buy the car you can afford and want. You certainly have the income to do it.
Best Wishes, | Joe

rsbv
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Re: Should i Buy a new car

Post by rsbv » Mon Aug 04, 2014 10:16 pm

I agree with all of you... and just FYI.. i dont care about status thats why im driving that car when most other drs i know r driving fancy cars.. Im happy with it.. I would agree that those comments ( from friends I shouldn't have) did make me think for a minute if my decision to not buy was wrong..

sscritic
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Re: Should i Buy a new car

Post by sscritic » Mon Aug 04, 2014 10:16 pm

If this is strictly about the car and the finances, why did you mention that you were a physician? How is that relevant to anything except how you are viewed in light of your physician status?

Edit: it looks like you have decided the correct answer is no for now. Good.

dansnad
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Re: Should i Buy a new car

Post by dansnad » Mon Aug 04, 2014 10:18 pm

OP are you asking "Can I afford this?" You need to post on Suze Orman's site for that advice. :wink:

rsbv
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Re: Should i Buy a new car

Post by rsbv » Mon Aug 04, 2014 10:23 pm

dansnad wrote:OP are you asking "Can I afford this?" You need to post on Suze Orman's site for that advice. :wink:


people here r equally smart and honest and i have learnt a lot from this site since before i started investing. Probably would trust opinions here more.

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William4u
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Re: Should i Buy a new car

Post by William4u » Mon Aug 04, 2014 10:26 pm

Maybe go half way:

Buy a Hybrid Camry. Eco-fancy and reliable (unlike a BMW).

Gattamelata
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Re: Should i Buy a new car

Post by Gattamelata » Mon Aug 04, 2014 10:27 pm

You're just starting to save. The time value of the retirement savings you make now is higher than the time value of any future retirement savings. The more money you can invest early, the cheaper you're buying your retirement. Seen the other way, that car will never be more expensive to you than it is now.

Buy low. Put that money in your retirement savings and buy the fancy car once you've been saving for a while and can see your savings growing on its own. Every trip you drive in that Toyota is another fancy meal in retirement.

OR own your desire for a fancy car and buy the BMW now knowing that you'll work longer or have less money in retirement because of it.

These are the ways that I think about potential purchases to put them in perspective.

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pjstack
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Re: Should i Buy a new car

Post by pjstack » Mon Aug 04, 2014 10:40 pm

To the OP: You have received some snarky answers here (it's a tough audience) but I'm glad they haven't made you angry.

BMWs are sort of a cliché among doctors, I guess. It reminds me of a vanity license plate I once saw on a BMW; it read "NOT AN MD". (I thought it was funny. Others may not.)
pjstack

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BolderBoy
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Re: Should i Buy a new car

Post by BolderBoy » Mon Aug 04, 2014 10:56 pm

rsbv wrote:Sp let me rephrase the question- since i DONT have money lying around to buy the car, does it make sense to take a loan?? I hope now its more clear.

Not to me. The interest you will pay on the loan is a guaranteed return if you don't take the loan. Any returns you get on investments over the same period is a maybe.

If you want the new car, use the $10k excess savings you were going to invest and buy it, then go back to investing the excess. Short term you'll be happier. Long term (at your income level) you'll be fine.

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Sents
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Re: Should i Buy a new car

Post by Sents » Tue Aug 05, 2014 12:14 am

Just save for a few months and then buy the car. No need to tap into your investments.
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Lafder
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Re: Should i Buy a new car

Post by Lafder » Tue Aug 05, 2014 12:38 am

"the way it stands right now i don't have extra cash lying around for this expense so it would either come from my emergency fund or from my taxable investments? i sure can easily afford monthly payments but cant buy it cash outright."

This quote tells me you should not afford it now. You say you can put 10,000$/month into your taxable savings. Why not try putting that $ aside over the next 6 months. Then after that time passes, see if you still have an urge to spend the whole amount on a car. That also gives you a chance to think it through and get past the emotional impulse buy.

Good for you for looking at a used car! That saves you money. But, it is still a very expensive car.

After driving the middle aged Camry, a new Camry will feel luxurious for roughly half the cost. BMW repair bills and gas bills and insurance bills are no comparison to Toyota! And beware of any accident you have in BMW, some people will be more likely to claim injury if you look like you have $$

Personally, I respect being able to afford a more expensive car and choosing to buy the less expensive one. Image and status to me are more about what you actually have, not the shell you drive that may even be leased. I would prefer and be more impressed with a paid for car of any kind and a paid for house of any kind than a BMW on payments and a mortgaged to the max mansion. But, I admit I do covet the luxury cars at times, until I remember the comfort I get looking at my savings lasts longer than the thrill of a fancy car for me. ((Or at least this is what I keep telling myself as I plod along in my Prius))

Maybe you need a new group of friends? Or when they nudge you to buy an expensive car, simply smile and say "I know I can buy a top of the line xyz if I want to, but I already have a hot wife, I don't need a car to prove myself"

I noticed you said you just recently started retirement savings. What % of your net worth is 50-60k? That would help put it in perspective.

Why do you have an ARM and when does it adjust?

If you are just a few years into making big bucks, you are sliding down a slippery slope of bigger spending.

But, the safety features of a 2015 are NO comparison to a 7+ year old Camry. The safety freak in me says you should buy a new 2015 car with better airbags and safety features sooner rather than later. Just not a BMW unless it is worth it to you. And only you know if it is "worth it" to you. From a strictly financial perspective, do not buy the BMW. From the emotional plus financial, only you know what is best for you. And judging you by the car you drive now (Yes of course people are judged by the car they drive!) don't make such a big leap to a BMW now or you run the risk that the next leap up will be to a ????? that costs even more to get the same thrill. Have you test driven a new Camry for comparison?

Best wishes
lafder

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slow n steady
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Re: Should i Buy a new car

Post by slow n steady » Tue Aug 05, 2014 12:42 am

Nope.

Maybe it didn't come through but it doesn't sound like you are a serious car nut. Is buying this car going to be the ultimate fulfillment for you?

You have had many years of schooling and low income to get to the income level you are now at. Now you want to super-save to catch up. Do it. You don't have to be super extreme to save a lot of money, but buying really expensive cars when you don't have the cash isn't going to help.

I feel like it's easy to justify an expensive car like that when you have a large income. Right now you just have a large income, you don't have the stash to back it up. Buy the car when you have the stash.

Good luck with your decision!

hmw
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Re: Should i Buy a new car

Post by hmw » Tue Aug 05, 2014 12:44 am

I think you can afford to buy a new car if that is what you want and you plan to keep your new car for a long time. I don't think it will make a huge difference to your financial future given your income. Maybe you can consider something a little cheaper, in the 40 to 50k range. I checked on cars.com, and you can buy a low mileage (<20k miles) BMW 5, or M-B E class, or Audi A6 for that price.

I am a physician as well and we are about the same age. Some docs like to spend their money on cars, judging by the types of cars on the hospital parking lot. But there are plenty of non-luxury cars on the physicians' parking lot too. I drive a 7-year old M-B C-class and it has only 38k miles on it. I plan to keep it until it becomes unreliable. I don't particularly care what the other docs think about my car. But sometimes I wonder what my referring docs will think if they see me drive a 100k car and their income is probably only 1/3 to 1/2 of what I make. Is it good or bad for business? :-)

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Watty
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Re: Should i Buy a new car

Post by Watty » Tue Aug 05, 2014 4:00 am

DSInvestor wrote:
Busting Myths wrote:
TxAg wrote:How about $35-40k on a car that isn't a BMW

But then it isn't a BMW....

which is a good thing.



Even people who like BMW's will gripe about how expensive they are to maintain.

In addition to budgeting money for all the maintenance costs also be sure to budget your time since if you need to drop it off at the mechanic fairly often that can add up to a lot of hours each year compared to if you bought a new highly reliable car for the same price or less.

If you want one though save up and pay cash for it without raiding your emergency fund, with your income it should not take very long.

Longdog
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Re: Should i Buy a new car

Post by Longdog » Tue Aug 05, 2014 5:35 am

You say you don't care what your friends say, but yet you are considering what your friends say. Sounds to me like you really do care what your friends say, which I think is a mistake, otherwise you wouldn't have asked this question. If buying and driving a BMW will bring you enjoyment, then buy it. But under no circumstance should you buy it to fit someone else's image of you. A BMW is a great car, and a lot of fun to drive - if you get satisfaction from driving. I have an eight year old one that I still enjoy. But if driving is not something that brings you satisfaction it's a waste of money.
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virgingorda
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Re: Should i Buy a new car

Post by virgingorda » Tue Aug 05, 2014 5:42 am

I think you can get a very nice used car for half of what you are expecting to pay, but maybe that type of vehicle would be too small for you. I am thinking Audi A4 -- along those lines. I disagree that you will have to "budget time to take the car to the shop" because late model cars, even BMWs, are not unreliable. Maybe when they get to be 10 years old, yes. The parts and labor will be more expensive all along than a Camry, though.

You said you started a 529 for your daughter. I assume you know you will in all likelihood be paying full fare for her? With your income today, if she was college age, she would not get any financial aid. A private university or highly-ranked out-of-state public 4-year education is currently around $250,000. I have a feeling you will not be satisfied with the types of schools where she might get an academic merit scholarship. Most of the top schools do not give merit scholarships.

livesoft
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Re: Should i Buy a new car

Post by livesoft » Tue Aug 05, 2014 6:04 am

Lafder wrote:But, the safety features of a 2015 are NO comparison to a 7+ year old Camry. The safety freak in me says you should buy a new 2015 car with better airbags and safety features sooner rather than later.

I have written this before: The safety features are not really much better between 2015 and cars built after 2001. We owned a Camry. We currently own two Lexus SUVs, one of which is elderly. They all had (and have) airbags out the Whazoo, ESC, traction control, seat belts, ABS, mirrors, brake lights, etc. I am sure the OP can compare his Camry to his Audi SUV for safety features.

I see no problem financially to buy a new used car for $30,000 or so. One can get a very nice late-model Lexus for that amount of money. One can probably even get a 0% loan for that.
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Theotree
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Re: Should i Buy a new car

Post by Theotree » Tue Aug 05, 2014 7:04 am

Buy a used 3 year old BMW off lease when you have saved enough to pay cash.

But first read "The Millionaire Next Door".

sambb
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Re: Should i Buy a new car

Post by sambb » Tue Aug 05, 2014 7:31 am

Theotree wrote:Buy a used 3 year old BMW off lease when you have saved enough to pay cash.

But first read "The Millionaire Next Door".



This is the answer that I would do. And read the book first. It will take you a few hours to read the whole thing, and after you do, you will have clarity on the car situation. Read the book. No doubt about it.

desiderium
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Re: Should i Buy a new car

Post by desiderium » Tue Aug 05, 2014 7:45 am

I think the temptation to resist here is borrowing money. Consider your mortgage your last loan.

Chunking down 50 or 60k of your earned income for a car will be a difficult act, as it should be. Once you do it, you won't want to do it again. A few years from now, it will help tamp down the recurrence of new car envy.

Or, if you are having trouble with this, buy something a little less dear as others have suggested

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Re: Should i Buy a new car

Post by bloom2708 » Tue Aug 05, 2014 7:47 am

I like Dave Ramsey's advice. Buy a new car when you have $1 million in the bank. If you want to count home equity or other net worth items, fine.

If you are just starting retirement savings, a new car purchase is not a great way to vault your savings forward.
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Crow Hunter
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Re: Should i Buy a new car

Post by Crow Hunter » Tue Aug 05, 2014 7:53 am

In my opinion you should do what makes you happy. With your income, you can afford it. With your future income, you should have no issue being able to afford a reasonable retirement even if you spend $60k now that won't compound in the future.

If you are buying the BMW to make yourself happy, then do it.

If you are buying the BMW to make your friends happy, then don't do it.

There will be no end to others spending your money for you. :mrgreen:

an_asker
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Re: Should i Buy a new car

Post by an_asker » Tue Aug 05, 2014 8:20 am

rsbv wrote:[...]We have 2 cars both fully paid- My wife drives a Audi SUV bought 2 years ago and i drive a Camry that i bought 7 1/2 years ago. It runs fine, gets me from point A to B without any problems. I have been hesitant to spend any money at this time on any major expense and focusing on retirement investment. But I have heard some comments from few friends lately ( even though I honestly don't care much) that this car doesn't suite to my status.

I was looking at BMW 5 or 6 series used, about yr or 2 old less than 20K mileage around 50-60K. Should I consider buying it? the way it stands right now i don't have extra cash lying around for this expense so it would either come from my emergency fund or from my taxable investments? i sure can easily afford monthly payments but cant buy it cash outright.

For that kind of money, I'd be buying me a brand new Tesla. And I would be parking it off the parking lot (see my best attempt at illustration below), like a dude in my community does - I've seen the car in a couple of community events and he's parked it the same in both locations, to show off his trophy and also make sure that even by accident, no one scratches it. That should teach your buddies.

Now, if you had not brought your buddies into the picture, I would've said - go ahead, buy the car. Don't pay cash, but finance it at the rock-bottom APRs prevalent currently.

| | | | | | | | | | | | <-- other cars
-------------------------- | <-- dude's Tesla
| | | | | | | | | | | | <-- other cars

vas
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Re: Should i Buy a new car

Post by vas » Tue Aug 05, 2014 10:29 am

I'm all for being frugal, but you make $400K/yr and presumably have a very secure job. Buy the car and enjoy it. Sure, there are options for keeping a few more pennies in your pocket but we don't all need to eat soup and day old bread.

bungalow10
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Re: Should i Buy a new car

Post by bungalow10 » Tue Aug 05, 2014 10:31 am

rsbv wrote:So here's the situation, I'm 38 yrs old physician, married 4 yr old daughter. I make 400K+/yr. I have 6 months of emergency funds saved up and I started my retirement investments just 2years ago and just opened Roth for me and my wife and taxable account at vanguard recently. I also have 529 for my child started last year. Im currently maximizing 401K and did maximize Roth for 2014. I also plan to have significant monthly taxable investments ( close to 10K/mnth). Biggest expense I had recently was, when i build a home, spend significant money in downpayment, moving, buying all new furniture etc ( close to 200K) and have mortgage loan of 668K on a 5/5 ARM. I am also paying extra 2K towards early payment of mortgage every month to pay off in 15 years.


Sounds like you are trying to justify a new car purchase.

I seriously wouldn't do it. The reason - because your friends have started pressuring you. Maybe YOU can be a good influence on them - keep your old car :)
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Keep It Simple
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Re: Should i Buy a new car

Post by Keep It Simple » Tue Aug 05, 2014 10:46 am

TxAg wrote:How about $35-40k on a car that isn't a BMW


Yeah I would continue to drive the Camry. Of course you can financially buy the BMW. I wouldn't get near a used BMW. The common rule of thumb for BMW is that if you are going to get one, either lease it and turn it in while under warranty, or buy and sell it before the warranty period is up. Without some type of warranty, that initial $50k-60k dollars will turn into far more.

Invest it instead. If you continue at your current salary for 25-30 more years, none of this will likely matter.

K.I.S.

Angelus359
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Re: Should i Buy a new car

Post by Angelus359 » Tue Aug 05, 2014 10:49 am

I'd grab a Tesla if I had your money
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Toons
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Re: Should i Buy a new car

Post by Toons » Tue Aug 05, 2014 10:54 am

Go ahead and replace the Camry and get the new car you want.You can afford it,,,as you well know being in your profession life is precious and too short in many cases,Enjoy the fruits of your labor.
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"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee

Clivus1
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Re: Should i Buy a new car

Post by Clivus1 » Tue Aug 05, 2014 12:29 pm

Keep the older car.

My life situation is very similar to yours. My fellow physicians and spouse thought I should get a new car.

I sold an 8 year old Subaru which was in perfect mechanical condition for a fancy new car costing 5x as much.

The new car was great for a few months, but I'd trade it today for the cash in my taxable account.

As a physician the only thing you need to do is keep it simple and avoid the temptation to meet others expectations.

With your income you should never finance a depreciating asset like a car.

flyingaway
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Re: Should i Buy a new car

Post by flyingaway » Tue Aug 05, 2014 1:15 pm

I would not change the car if it were me. However, you make a lot of money. If you want to buy a BMW for the status, for God's sake, buy a new one for the true status.

bloom2708
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Re: Should i Buy a new car

Post by bloom2708 » Tue Aug 05, 2014 1:21 pm

Grab a copy of "The Millionaire Next Door". As a Dr. with a very good salary it will be easy to live a lifestyle that matches it. You want to be a "Prodigious accumulator of wealth". The book talks about many doctors a lawyers who have big salaries and not much for savings.

On the flip side you have people that never make more than $30k or $40k who manage to save astounding amounts. You should be able to find some middle ground where you save a large amount and still have plenty to spend. If you buy a huge house, vacation homes, new cars and join the country club you will be "normal". Don't be normal.

Buying a $60k BMW would not be 1st or 10th or 33rd on my list of things to do.
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Re: Should i Buy a new car

Post by livesoft » Tue Aug 05, 2014 1:26 pm

Within a month of buying that BMW, your friends will upgrade to a Bentley, Maserati and/or Ferrari. Then they will pester you to upgrade as well.

Maybe you can tell them, "When you buy your Ferrari, maybe you can sell me your old BMW."
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