I advise OP to read The Automatic Millionaire and The Little Book of Common Sense Investing. These books will open your eyes about time value of money. This 36K invested in the S&P 500 at the age of 22 will probably be worth a million bucks at retirement age. I love the car but there’s no way I’m paying 1K per month. I would pay this kind of money only if I have an apartment building that brings 10K+ a month. I have a pretty solid income by anyone’s standards and still have hard time justifying even 500 per month.
Gorgeous car and I hope you enjoy it.
1 Like
Yep, this is true. But then I’ve read that the cost of living is out of control in that part of California, driven mostly by the folks in Silicon Valley.
Anyway, dope looking car OP.
Given his dad is helping with the payment then probably not. But this isn’t a financial forum so not really up to us to judge.
1 Like
No offense, but I advise you to read The Millionaire Fastlane (please ignore the actual name of the book) and / or Unscripted…
I know that $1k/month for S5 is ridiculous, but I also find it ridiculous when people are saying something like “I would pay this kind of money only if I have an apartment building that brings 10K+ a month.”
What do you spend other 9k on? Or do you reinvest so you can have few mil at the age of 60? Why do you need few mil at the age of 60 once again?
I passed on an $80k Cayman S for $300 / month less than this.
You should have used the money due at signing for MSDs instead and buy down your tier 2 credit. It would have saved you a ton. Also the maintenance stuff is F&I bs…
4 Likes
I’m with you on this. I’m all about having balance in life. It feels a lot better driving an S5 at the ripe age of 22, rather than when you’re 65-70 with possible health issues. At age 22, if you could comfortably afford a $1k lease pmt and still save and invest a bit, then by all means go for it.
3 Likes
Well in my opinion people should spend this kind of money on a car only if they are 100% independent financially. You ask me what I would do with the other 9K - I would rather have a nice house in a nice neighborhood, vacation home in a nice location, perhaps another one in Europe where I could stay several months and travel around. I am not saying that one should hide in a 300 sq ft studio, drive a 10 year old civic and eat 10 cent ramen noodles. I get equal or even more pleasure from my GS 350 for which I pay 350 per month. It’s not about what car you drive but how much you pay for it. I can not imagine a 22 year old needing more than an A4 or 3 series or IS 350; GS 350 will be pushing it.
What qualifies as AFS Tier 1? 700 FICO 8?
I think we all need to relax. The kid got a terrible deal and he is okay with it. Sounds like he has rich parents so the payment won’t be a problem and isn’t gonna strap him for the rest of his life.
Very nice car… doesnt belong on leasehackr, but still.
3 Likes
Beautiful car! Terrible deal. Just going to echo what others have said that i’m super jealous. At 22 I was VERY proud of myself for negotiating a £93 a month payment on this completely ridiculous (yet amazing) car.
Not sure, but I was looking to lease an A3 in July 2017 when I was 20, and I could not get approved for Tier 1, despite credit scores in the 800s. I believe the highest they could do was Tier 2, since I didn’t have a long credit history and no installment loans (only credit cards). BMW gave me Tier 1 as part of the college grad program.
All that aside, this is a pretty bad deal.
1 Like
I was 22 and fretting over financing a new Mazda6 
The deal has been dissected ad nauseam so I’ll just add that you should enjoy the car and come back in 3 years. With a more established credit history and better knowledge you can do even better next time.
Well you see, it’s all about PERSONAL preferences… You’d rather have multiple houses across the world - fair enough. I’m a car guy - I’d rather drive a 200k mclaren than move into a house that is 200K more. In fact, as a young kid, I really don’t care about the house I live in - as long as it’s nice neighborhood, convenient location, and good garage/driveway - I’m satisfied.
“It’s not about what car you drive but how much you pay for it” - why are you driving GS 350 for 350 a month if you could get a Terrain for 150 a month? You just don’t make sense.
I think it’s just incorrect to assume everyone’s thinking the same way you do … Someone spends thousands a month on designer cloths, someone - collecting coins. Who cares as long as it makes that person happy 
4 Likes
The thing that scares me most nowadays is how far people stretch their credit out and don’t even think twice. It’s all about “how much can I afford” or “how much can I get approved for” and that somehow becomes the budget. On an appreciating asset like a house I get it, but on a car it’s truly terrifying. I could get approved for a $2500/mo mortgage and a $1500/mo lease. That’s a really scary thought for me, considering that I have a $1050/mo mortgage and a $550/mo financed car and am still not satisfied with where I’m at financially. I blame my toddlers
2 Likes
This thread qualifies for the…
6 Likes
Enjoy your car but if you came here looking for a pat on the back saying good job, you’re not going to get it here with that deal.
4 Likes
The lease itself is pretty typical for an S5 - he actually got some money off of MSRP. It’s the add-ons that the salesperson was able to sell him. When I bought my first car at 22, I paid $800 for undercoating. It’s a typical 22 year old mistake.
You know what doesn’t make sense to me is reading your posts desperately trying to fight something that’s common sense to most people and then seeing your trophy garage posts about signing on a GMC terrain and a QX60. So you got a terrain but you are arguing about an S5. I don’t fully get this. Many people pay for a Honda Accord as much as I do for my GS 350 and then think that I am driving an expensive car when they see me in the garage. That’s why I said that is not important what you drive but what you pay.
I lived at home through college and went to state schools with scholarship
Soooo I wanted to enjoy now that I graduated
Also Crosby sucks.
1 Like