Buy a new BMW or invest the money?

Question

I could buy a new M3 for 80k and pay a shitload in taxes: state sales, gas guzzler, property taxes, etc.... or I can buy a cheap beater car and invest the money in stocks since everything's so d**n cheap right now. What would you do?

Answer 1

If you have $80K to spend on a car, you should be able to do both.  Personally, even though I have the income to drive such a car it's a waste considering depreciation.  In 5 years you'll have a car worth 50% of that whereas the stocks would likely be worth 100K.  So ask yourself in 5 years would you rather have a 5 yr old BMW worth $40K or an extra $100k in your portfolio to retire earlier.  Buy a used M3 and invest the rest, let the original owner pay for the depreciation and you can pocket and invest the difference.

Answer 2

I would buy the beater, and invest the rest.

Answer 3

Buy a nice Buick Lucerne.  You'll have a quality car with lots of luxury and $50K to invest.  Great time to invest!