Looking to purchase my dream BMW which has depreciated nearly 50% and is practically new (2-3 years old). This car would be my daily driver. I am a car enthusiast and work on all my cars so I don’t mind spending more than what the typical person would on a vehicle.

I currently follow the 50/30/20 rule. With 20% down and sell my paid off and heavily modified BMW (much more value than trade-in), monthly payments would be approximately $850-$900 at 7.5%. I may have to stomach a $1250 monthly payment for a few months until my car sells. Insurance $100 a month full coverage on new car. I love my current vehicle, no need to sell as I have recently completed some major maintenance items…but mileage is getting high nearly 100k now and I have owned this vehicle for 4 years. I typically switch cars 3-5 years but this BMW I see myself owning forever.

With a $900 monthly car payment (~14% of take-home salary), my fixed costs for all necessities (rent, groceries, bills, insurance, gas, etc) total ~50% of my take-home while still saving at least 20% (excluding 401k match). +20% promotion in 1-2 years. I currently rent a nice cheap condo and have a 20% down payment ready for a house purchase which I have decided to hold off until prices or rates go down. No plan for kids for at least 5 years.

The numbers all make sense on my budget spreadsheet and follows the 50/30/20 rule. It is tough thinking about going from $0 car payment to $900. Although it is not needed, it is my dream car and seems like a good time for me to pursue (young, stable job, heavily depreciated, no kids, no debts, house down payment ready, etc). Someone talk me out of buying this car!