Consider a used Infiniti G35

Tough to believe that a VW is more expensive to maintain than a Porsche but there you are.

BTW, Audi wiper blades can set you back $60 a pair. VW Passat wiper blades are a dealer only item and cost about $50 a pair. You really have to research the hidden costs.

1) Saving is a part of life but not life itself. Set saving goals and when you hit them allow yourself some things you desire in life that you have denied yourself. So in your case, I’d say if you had 5 times the total amount of the car saved/invested then treat yourself if you “really” want the BMW.

2) If you can get a 6% or less car loan then pay for the car using a car loan. The reason for this is that you should be able to make 10% avg. return on your money in the long-term. So why not have your money working for you and be available to you if you need it.

3) Don’t ever buy car’s new, unless they are low priced cars (sub $15K). The reason for this is two fold. Cheaper cars usually don’t last as long, so you won’t save as much by buying used - in the long run. For higher priced cars (above $15K) buy used (3 to 4yrs old). The reason for this is simple, you’ll be able to save 1/3 to 1/5 of the total price of the car. At the same time, you should be able to find a car that only has around 30K miles on it, which is low mileage. Ex: A $50K car new (2004) would be worth around $28-30K in (2007) with around 30-40K miles on it. Also, high priced cars are usually very well taken care of so they are in excellent condition, another plus for buying used.

4) Never go into buying a house or car thinking you’ll own it until it dies (or you die). Owning a car for 10+ years requires almost the same discipline as not buying a luxury car (new or used). Typically, once you get a taste of the better life - you want to upgrade since you’ve already justified/allowed yourself the luxury to purchase such an item. I’d say plan on owning a car from 4 to 7 years tops. But if you buy a cheaper car then you can drive it until it dies since a new cheaper one will probably not be that much different with regards to features/performance.

5) If you want to retire early, then don’t buy anything luxury. Retiring early is an aggressive goal even if you make good money.

Well, these are my guide lines. I have over $540K saved for early retirement (1/3 of my goal). As for what I drive, it’s a 2003 Protege 5 sport wagon that I got for $14,500 new. I financed 100% of it (tags, tax, etc.) with 0% for 36 months (had great credit so it wasn’t a problem). The car is paid for and I really want a luxury car - 2004 Infiniti FX45. But it’s hard to bite the bullet since I want to retire early (I’m 38yo now and want to retire at 45yo). Finding that balance would be easier if I want to retire later but I’d rather have a happier second half of life vs living large now. And as another person said, just imagine what you could do with $20-40K over a 4-7 year period. Save it and that money would double in 7.2 years if you got 10% avg. rate of return. That’s one way to have your money pay for the car itself. Let it grow for the next 7.2 years until it doubles. Whatever you decide - good luck. You only go around once and you never know when your time is up. Live for today but plan for tomorrow. But money will never make you happy, it’s just a tool that allows you to create an environment that you enjoy - but not the joy itself. :O)

I have to make at least two round trips per year from east TX to San Francisco Bay area. I used to do it in a “cheap” beater. However, the comfort left something to be desired.

I now make these trips in a Lincoln. I can do it in two days, as opposed to three days. Fuel economy is about 25 MPG, at 80MPH, with a loaded car top carrier on the car.

For me, luxury is hands down.

If I lived in town, worked in town, and only had to drive a few miles to work, I would consider a smaller traffic friendly car. It would still be fully loaded.

Maintenance is included for 3 years with BMW cars.

My father in law, bought new cars every three years. I used to criticize him every time he brought home a Lincoln or a Grand Marquis, with the admonishment of the money he was wasting. “Can’t take it with ya’” he would say back. He died at age 68, one year after his wife. He was right after all.

Cash for a car…are you sure that’s a good idea? I know they depreciate but why give up liquidity.

It’s fine to buy any luxury item you can afford, but make sure that you understand what you’re actually getting into before making the leap.