conversation: User (TheAllInclusive): "Currently driving a 2006 Honda Accord with 67000 miles on it, which runs fine but needs to have the timing belt replaced.  Not sure if I should bother sinking any money into a car I am pretty bored of at this point.\n\nI have been thinking about trading it in and upgrading to a preowned BMW 650i. Xdrive coupe. A local dealer has one listed for 43k but I am sure I could probably bump it down a bit.  I test drove one and it definitely blows my accord out of the water.  I don't want to really go into alternatives as this is truly the car I want.\n\nHere are my finances:\n\nSalary: 38k\nSavings 12k checking\nRoth IRA: 16k\n401k: 6k\n\nMonthly Expenses\n\nRent :950\nCellphone: $60\nFood: 350\nNetflix : 10\nEntertainment : 200\nGas $180\nInsurance: $120\nMisc: 200\n\n\nI figure I will put 10k down and finance the rest using my Roth as an emergency fund.  Playing with an auto loan a calculator I figure I can get my monthly payment to around $500 which is totally doable IMHO.  I thought about leasing a new one but Thankfully I've seen enough advice here recommending against it.  \n\nEdit: Forgot to figure in my trade in, which I imagine I could get around 6k for.  That would mean if only have to put about 5 or 6k down which means I'd have a much larger emergency fund."
  Self: "No. Insurance, gas, and maintenance costs are all also going to skyrocket. You can't afford it, and I think you'd have a tough time getting a loan for it anyway"
  User (TheAllInclusive): "Do you really think I'd have a tough time getting a loan, considering my trade in is worth 6k and I am throwing in an extra 5k down payment on top of that?  "
  Self: "Yeah, I think you would have a hard time.\n\n\nAlso, you've listed that you have 1950 in expenses, not counting insurance which could easily be 200+/month with the new car. At 38k, assuming you don't have to pay for health ins and are completely foregoing retirement savings moving forward , you can't be taking home more than 2400 a month, I'd think?"
  User (TheAllInclusive): "Yes, I figured with my savings I could afford to run a slight deficit for a few years in the worst case instance my salary doesn't go up.  My standard of living wouldn't really change, just a few years of my retirement savings."
  Self: "I don't mean to sound condescending, but think about that statement. Your ideal budget has you running a deficit. What if literally any unexpected bills come up? You're on solid footing right now with your savings, don't blow it on a car. "
  