Before anyone says it, I know buying a car worth more than your salary is a very, very stupid financial decision. It is purely an emotional decision. The car in question that I’m looking at is a 2020 E63s, with only 27,000 miles (45,000km), one owner car, dealer maintained, clean history. I work at a Mercedes Benz dealership and we just got this car on trade. I can buy the car for about $15,000-$20,000 below market value (employee pricing, dealer sells it to employees at cost). I also get an employee discount (80% off of labour, and 40% off of parts), the labour rate is only $40/hr. The car will also have a full factory bumper to bumper warranty.
Here’s where I’m a bit torn, the car is about $83,000 CAD, closer to $95,000 CAD ($67,000USD) with tax AND warranty. Im 26 and make about $70,000-$80,000/year, but here’s the thing—I can afford to pay for the car twice in cash (have close to $200,000 saved), but I would not pay in full. I would put about $65,000 down and finance $30,000 roughly, monthly would be about $500/month (I get a $600/month car allowance at work). I have no debt at all, wife, or kids, and never really indulged or spent any money for the last few years. This is my dream car and when I saw it come in on trade my jaw dropped.
I know all these factors don’t make this a smart financial decision, but it makes owning an E63s literally cheaper than ever, and right now would be the best time to own it due to all the perks of working at the dealership. I could drive it for 2-3 years and the loss wouldn’t be huge.
Should I pull the trigger?