my fren is very interested in this car, but still considering due to the price tag 340k. thus taking this opportunity to ask around if he can afford it.
he has zero commitment, has no intention to buy property since he doesnt need it.
currently he has liquid asset of around 700k.
savings per month is around 9k from salary (note: not gross income)
side income of about 5-10k monthly
he is 28
yay or nay.
i say he can.....

Subject: BMW 530e M Sport
Status: Interested
Savings: RM9k / mth
Loan: RM4k / mth
Verdict: BUY

Is 340k equal his yearly gross income?

If lesser don't buy...

obviously can buy, with that port folio, he is more than qualify to afford it. live life before it is too late.

would like to understand how this works? on what basis is this formula of 1 year income = value of car derived from?
based on your calculation. this guy need to earn almost 30k a month to afford this car.
and since he has no commitment. the repayment is only less than 20% of his monthly pay.
currently he is saving 14-19k per month...

Yay. He can definitely afford it. Even can put in substancial amount downpayment if not intend to get full loan.

This is just a guideline, it's not exact science..
But it's a good guideline taking in the the other big ticket expenses that is going to happen in a person life...
Namely, house, wife, kids and education, cars, retirement

House - is your friend just satisfy with a normal condo 600k or a 1mil link house or a 1.5m semi d? He's gonna buy just 1 house his entire life?
I
Wife - unknown - if he meet a gold digger that is attracted to his 530e, he could welll spend 1m on wife throughout a lifetime

Kids - 300k - 500k living expenses. The kicker is when your kid want to study overseas.. 1m education.... This is per child mind you.

Car - your friend want to buy 340k at 28. Assuming he change car every ten years, i reckon he gonna change another three times.. so his next car gonna downgrade to civic? Or u think he wanna maintain his status and buy an equivalent or more expensive car 3 more times! He could welll spend more than 1m just on cars..

Retirement fund.. 25 years of 0 income. if he want to maintain his 530e status.. 1m is not going to cut it

There really is no right or wrong answer here...
My short answer is if he want to buy his car and maintain a 530e lifestyle, then he ain't there yet..
But if he is determined that he can sacrifice some of the things i just said, then ask him to go ahead

Else i think he better just wait until his 30s, when he has a clear idea of his financial status then buy... Besides, buying a car later means you will get a more advance car

Funny if he dont see the need to use the money to expand the side income..... Rich ppl buy asset while poor ppl buy liability

so your advice is to not purchase the car then. you mention kids and wife and 25 year of retirement fund. no offense, but what makes you think his wealth wont grow since he is only 28 now. as mentioned, he is saving around 14-19k per month, this is after deducting all expenses. and if he properly plans the purchase, he wont even need to touch his current savings at hand. btw 1m for overseas education is on the high side, based on my understanding that amount of money is needed only if you enroll in courses like medicine or some high-end university. the average would be around 300-500k.

mind elaborate on poor ppl buy liability? housing loan also a liability you know? and if im not mistaken, he is using the money to grow his side income. but at the same time considering to use 20% of the income for the car.

If yr house loan for own stay not generating income then yes, if u can generate income to cover house loan then no. Property in this era is liability cos price is too high, old days 50k house can generate 1k income while now u need min 300k unit to generate the same 1k.
If side income that good why dont go all in.....

Perhaps you can also share with us your numbers and reasons as to why you say "he can"?

---

If your friend has no other purpose for the money, he could totally buy it cash and afford it at this point of his life.

If he believes in his capabilities, he can probably earn more than the depreciation and interest rate amount.

If he has solid foundation on his finance portfolio now, by all mean just go ahead. If for me at year 28 yrs old with such income and no commitment i will try to make my portfolio rock solid first before enjoying the fruit.
Thing can go south and nobody can predict it in future so the foundation is needed to avoid any start from zero or worst negative situation if anything happen. Your friend is 28 yrs old and if that mishap happen on 38 yrs old which wipe off most of his fortune. That would be disastrous.

I don't know whether his wealth will grow anot, i have no idea what industry he is in, his career projection.. likewise your fren dunno whether he get retrenched, get accident, or financial loss...

We can only plan for the worst and hope for the best.. and car=1 year gross income is part of a safe financial planning guideline..

From what i guess, he is near to 340k gross income in a few more years, y dont he just wait it out?

His savings come from inheritance or his income?

530e for a 28 year old? Afraid people thought it's his father's car
28 with money better buy M3. 4 door with boot. Looks younger.

Tell him yolo..

We all know he can afford it so why not..

Your friend is very young, rich and has no commitment. I bet he is good looking too. Some people are just blessed. So he should buy whatever car he likes.

Side income collect rent from inherited props?

If yr house loan for own stay not generating income then yes, if u can generate income to cover house loan then no. Property in this era is liability cos price is too high, old days 50k house can generate 1k income while now u need min 300k unit to generate the same 1k.
If side income that good why dont go all in.....

he already has a big portion of his wealth for side income. sometimes ppl wanna enjoy a bit from their fruits of their labour. thus we have this discussion mah.


he doesnt have a rich family background, its not inheritance for sure. i do agree with you on waiting for maybe another 2 years, by then he should have stronger financial capabilities. i believe he is doing very well for someone his age, most would have just splurged with this kind of income. kinda amazing that he doesnt own anything with this level of savings.

but he has no love.
somehow when it comes to relationships....it always turn out sour
so he already gave up on that and focus on his family, who will never betray him.

lucky he chose family rather than being interested in same gender

That’s because he got no 530 previously. After driving 530, gf become family and won’t betray him also.

That’s because he got no 530 previously. After driving 530, gf become family and won’t betray him also.

that kind of girl not wife material.


nah, i dont think he is at the level to get GTR. its completely different range. and he is on the conservative side, meaning a GTR would be too aggressive, two doors only. how to fetch his parents. AND ITS NOT COMFORTABLE. old ppl butts will hurt. also...ppl will think its recon anyways

With saving of 9k, it is an obvious yes.

this ^

with 9k of savings..meaning nothing to spend on, he can even get 7 series if he want

Lazy type long long.

But yes, can afford

With no commitments?

Yes, can afford.

Woah 9k saving/month for sure its a yes. I guess he’s a car enthusiast

focus on money
it never betrays u either

but for me i'd rather directly get a proper M car than M-Sport

at his current financial standing. cannot afford M car...

1m doable

530e RM340k meh? Bought mine at only RM303k after rebate during tax holiday last year 😋

Obviously our friend here is just dreaming and just need a stroke of ego on his imaginary high status. It is morning already. Wake up!

Can steal chicken to afford god car.

How he earn such income? Sell white powder?

ktards are good samaritan. always asking opinions about their friends' issues.

go buy it.

530 e...kek...is same buyer concept like buying bmw diesel.

This post has been edited by Saltiez: Jun 27 2019, 08:00 AM

how about a used m5? get a 5 or 6 year old m5 and enjoy it.

YOLO, buy it while you’re still young and single

its the new variant. 530e m sport. aiya you should have waited. this variant has the adaptive led headlights

40k difference just for the lights, M trims and rims, no need lar. Better off save that money..lol

Go to any BMW dealer ship they will calculate for you.

no la bro. yours 300k including discount already. 340k no discounts yet. black rims man... nice...
with discount i think 320k can get d

330e G20 is more suitable la

I negotiated 21k rebate + 20k GST saving that time. So yours after same rebate without the GST savings, will also be 20k+ costlier

Nah I prefer non black rims, more executive look

330e maybe another 1.5 years only come to msia. 3 series too many liao. 318i all around

continue dreaming la. this dream not bad. wake up drive myvi

Tell your friend to buy the car as if he doesn’t buy it, no one else would want it. How else would car companies get rid of their luxury vehicles if not to the middle class pleb.

Rich people are no longer interested in luxury cars..

are you another member of the "rich ppl buy asset, poor ppl buy liabilities" clan?
if rich ppl dont buy luxury car, what do they buy? keep cash in bank and let the bank make money off you?

Ofcourse dont buy la...

Dont be a cheapskate, top up 30k and get the 530i pls...

dont you know according to /k expert.. rich ppl must drive Axia? SO when accident their chance of dying is higher then the middle class riving BMW.... cause u know.. life is cheap

Rich people buy power and go into politics. Only sohai buy BMW to show power on the road..

318i is crap... interior liek crap.. heck even my mom dont wanna drive that car...

30k not money meh.... its about the same wor. interior lights diff la. hybrid engine. display key. about that nia.
memang cheapskate hahaha

That would be driedfish. Most rich people would drive a Volvo or 4WD or MB with a sturdy body.

Well.. if you get the 5+1 warranty promo.. i suppose 530e STILL can consider.

But... for peace of mind, just top up and get the 530i... heck even my colleague baru keluar one... 530e is just asking for trouble

volvo and MB are not luxury cars?

m-sport is not ///M.

not worth it

Not when they are more than 7 years old. Can get one for less than the price of an X70. Only the filthy rich can afford to maintain a MB after the warranty period expires.

if you have to ask you can't afford it

Bmw Hybrid still problematic ?

Scotty kilmer is a millionaire but he only drives a 94 celica

your reasoning is all over the place. first you say rich ppl not interested in luxury cars. then you say rich ppl only buy volvo and MB. now you say more than 7 years are not considered luxury cars. and filthy rich only can maintain MB.....

Would love to know your take on the i vs e, like pros and cons, taking consideration of cost also. Thanks bro

my friend = TS

This!

Many people calculated commitment base off % of monthly gross income then eventually cannot afford any further commitments in the future or when something shitty happens. This is what most dont see and end up "wearing a hat bigger than their head"

if youre talking about value for money. the 530e m sport has more value. by theory it has a more advance hybrid engine. other than that, the differences arent that big at all. (display key).
if its not because of our eev incentive in msia, this car would have cost over 500k. personally i feel the more tiring part is charging the battery. finding charging stations and etc. also the newly introduced 530e m sport variant look almost the same with 530i. except black rims

the 30k u saved on E will translate into battery price 4~5 years down the road.

Unless you driving 3 years then change car its fine.

Get a BMW M2 Competition! don't wast time 530e!

That’s how the rich people think. If the top 0.01% thinks like the average joe (aka you). You still think they can get to the top of the heap meh? You have to think differently to make it in the world.

Anyhow, if you don’t understand what I am trying to convey in my previous posts, then you are probably not one of the 0.01%.

This post has been edited by friedricetheman: Jul 2 2019, 01:52 PM

omg..you must be some top 0.01% rich tycoon. so sorry la, average joe like me cannot brain your logic. im definitely not 0.01%

28 want to buy uncle car?

Buy la at least M3 or M2!

It's okay. Apologies accepted.

fark this shiat

5 series nowadays quite sporty d mah. and with black rims man...
and the most important thing is that its really comfortable, more practical in the long run.
M2 M3, happy for first few weeks only. then will complain how rough the ride is. anyways they are on a different level in terms of pricing. cant afford.

top up a bit more and get a M5 please.

He can definitely afford it.

ask him topup abit get bentley la

So... did you bought the 530e?

glc

Shud buy 2.. not 1

9k....340k
It is a confirm buy!!

sendiri dupe ask, sendiri answer.

owai.

after like half a year? nah... you gotta have a mind like that to think like that. feel sry for you.

so what's the outcome?

There’s a simpler way to measure affordability.

If you need to consider, that means you can’t really afford it COMFORTABLY.

For example you go to kopitiam to order food, you won’t really consider about the price, just which food you want to eat.

If you go to high-class restaurant, you might start to check out the price and not comfortable to pay a few hundred ringgit for premium ingredients, that means your affordability level is only there and not higher.

If you can buy a car without caring about the price, that means you can really afford it COMFORTABLY.

Never buy European hybrid.

This one bullshit calculation

Yea, i think so too.. especially after 40 yo..

With his age he will look like he is driving his father or company car

Ask him to try find 3 or M2