[Calmwinds]

I'm wondering what people do for a living to be able to afford such cars. I myself make around $90,000 a year but I can't seem to pull the trigger on such cars no matter how much I like them.

[The J-Man]

Canada is probably different, but you don't have to be wealthy to afford a BMW lease. A loaded 335i is can be had in the $500 payment range. That's plenty doable for somebody making even $50K per year.

I do wonder how long BMW Financial can sustain these highly favorable lease terms, however. They have so many cars coming off lease with residuals much higher than market value. That type of sales model can't be sustained forever.

[pcbrew]

Not sure what residuals were 3 years ago, but current residulas aren't that high on many models. The 56% on F10 makes the 62% on F30 a bargain.

Also, BMW can play games with MF so increased residuals do not hurt them that much.

[TheBingoBalls]

Income is only half the story. Even with a 90k/yr. income, I can totally understand the hesitation on buying 60k+ car. Of course you could be that person who has the money and can go out and buy a BMW/Mercedes/Audi because you can, but to some, you either have an appreciation for "x" car and love to drive or you don't and see any car as just a means of transportation. I know many family and friends who make well over 100k and have no interest in getting a luxury car, they're happy with their Toyota's and Honda's.

I consider 90k to be getting up there to what most people want to make, but even with a 50-60k job, if you're good with money management and you have a passion for said car, it's definitely possible to own a car costing that much.

[Sandpiper]

Oh snaps 1CAD = 1.0064USD! It used to be like 1USD=1.2CAD. Now we're even..lol. $90k is more than enough to get a $60k car on a 5 year loan. The 335i almost fully loaded will run you about $51k-$55k, so something else must be holding you back.

My general rule is if you make $50k/year, you should spend a max of $25k (50%) to buy a car on a 5 year loan. That is just my rule. The monthly payments are easily manageable and leaves you a good amount to save every month. If you go with my rule then you would want to have enough down payment to bring the loan amount to $45k.

[SoFlo_Nick]

Originally Posted by Calmwinds

I'm wondering what people do for a living to be able to afford such cars. I myself make around $90,000 a year but I can't seem to pull the trigger on such cars no matter how much I like them.

Well i own a Gas Station my F30 is 55K and $90,000 a year is possible to afford a car but not a 55K car that would be 740 Month Lease with 4,000 down on top of that mortgage you have to Pay and if you have a family. + food

7,500 Month
740

= 8,880 a year in Car payments plus the Initial 4000 Down.

It's possible if you don't have a high expenditure. Go to your bank they have financial advisors that can tell you based on expensise how much you can pay for a car good luck

[doublevanosrc]

Originally Posted by pcbrew

The 56% on F10 makes the 62% on F30 a bargain.

No kidding that's a great residual.

[Yay-Z]

I like to follow the rule of not getting a car if the MSRP is more than half my salary.

At 90K, I personally would aim to lease or finance a car that MSRPs less than 45K.

Getting in the car is not that hard, its all a matter of what's important to you.

[SoFlo_Nick]

Originally Posted by Yay-Z

I like to follow the rule of not getting a car if the MSRP is more than half my salary.

At 90K, I personally would aim to lease or finance a car that MSRPs less than 45K.

Getting in the car is not that hard, its all a matter of what's important to you.

Yes i follow that same Rule! When i lease i divide it by Ownership of 3 Years so 18,000 dollar's a year ownership if i where to buy

[JoeyO]

To answer your question, I play a young divorced "demolition expert" on TV.

[MacAttackBMW]

Pimps need to drive nice cars so their hoes don't get out of line. That's why I'm getting mine... Can't afford to lose any of my stable. :P

[BTT 335i]

Two incomes (wife and mine) and no kids

[CE750Jockey]

Originally Posted by BTT E92-F25 35i

Two incomes (wife and mine) and no kids

That, and my dog's not going to college.

[MacAttackBMW]

Originally Posted by BTT E92-F25 35i

Two incomes (wife and mine) and no kids

And I make my wife ride a bike so I can use both of our $$$ on my car.

[BTT 335i]

Very funny guys, that's exactly what I was thinking, I ride the car and my wife would have to follow me,, jajajajajajajajaj

[JulieDriving]

Originally Posted by The J-Man

Canada is probably different, but you don't have to be wealthy to afford a BMW lease. A loaded 335i is can be had in the $500 payment range. That's plenty doable for somebody making even $50K per year.

I do wonder how long BMW Financial can sustain these highly favorable lease terms, however. They have so many cars coming off lease with residuals much higher than market value. That type of sales model can't be sustained forever.

Canada is different.

For leases,

335i leases are like M3 leases in the States, in terms of monthly payment.

And to lease an M3, it's more than $1500 a month (unless you put down a big downpayment, which isn't advisable on a lease...)

[sunxnus]

25% of your monthly disposable income is my rule. So, if your monthly disposable income is 2k, then you should be able to afford a $500 a month car.

[bl@ster]

I pick up extra cash by working as a carnie so I can afford my 328. It makes my car smell like cabbage, but so what.

[Raspartan]

For Canada there is also the handicap that everything seems to cost more here, so an equivalent salary in the US means better affordability there. I believe income taxes are higher here in Canada than in the US too.

[Vong]

For those of you from the US,

Just so we're on the same page, if you make $90,000 per year in Canada, your income tax is ~$23,000.. leaving you with around $67,000.. I know.. it's a lot...

Unless the the person who put up the original post meant $90K after taxes, I think some of you Americans might want to reevaluate your opinions lol..

[Autumn]

People in America generally have a lot more money than people in other countries due to very low tax rates compared to Canada and Europe. Also, they have cheaper items (especially cars). So it's all good.

Unless you get sick and end up paying all your savings and then some to the doctors.

The guys driving BMW's are the ones that haven't gotten sick yet.

[jtuds]

For us Canadians, it's tougher than it is for Americans but it all depends on your life situation and your expenses.

I have buddies around my age making over 100K and they aren't even thinking about a nice car, they're saving to buy houses, focusing on investing for the long term, getting married, etc. But give them 5-10 years when they've had a chance to bank some money and get comfortable, they'll be gung-ho for a nice car.

It all depends on priorities and life situation.