Freed by 50

I mentioned this in a couple of recent posts, and let me be clear (it’s post election 2025 America and the phrase “let me be clear” has been used so much I want to vomit), this is in no way a brag or a humble brag, or whatever type of bragging is in fashion today, but I went out and bought a BMW last September.

I’ll get right down to the point of this post and then talk about the particulars. I both love and hate cars, just as I love and hate myself. I have tried every car experiment that I can think of over the past decade. I am four years from potentially reaching my stated goal of reaching financial independence by 50. I am currently a very high earner with a fairly high net worth and I’m on track to meet or exceed all of my financial goals. I also happen to only drive 5,500 miles per year.

I know very well the long term cost of ownership of a luxury car. I understand depreciation and that it hits even harder with luxury vehicles. I know that there is value to be had in purchasing used, especially in the luxury market. And with all of that knowledge, I still went out and bought a brand new BMW.

What the hell is wrong with me?

First and foremost, as stated, I’ve driven virtually every combination of cars I can think of. I’ve outright owned two beat up commuters. I’ve leased two new reasonable cars. I’ve leased a new reasonable car and owned a beater. I’ve had just one brand new leased car. I’ve financed a used car and owned a beater. I’ve outright owned a used car, leased a new car and owned a beater. And now I’ve financed a new car and leased a new car. And let me tell you…every single permutation of car ownership SUCKS.

Whether you own them, lease them or finance them it’s a bad financial decision. If they’re under warranty or not they’ll eventually need repairs, those repairs will cost more than you want, and they’ll be an inconvenience. It doesn’t matter if they’re gas, electric or hybrid, cars are a financial disaster and a pain in the ass. And living in the suburbs, even working from home, you still need at least one, so you’re doomed.

Reason the second why I knowingly made a poor financial choice. For the first time in a decade, my family is not growing. Previously, each time I needed a new car it was either because my existing car was too small or on the verge of unreliable. I’ve finally reached a point where things are stable and I know that any vehicle I bring into my home can be a long term situation. This meant that no matter what, I was going to buy my next vehicle and own it for six to seven years. Which brings me to…

The third reason I made this brilliant financial choice is the current state of used and new car prices, and car loan rates. Last September when I was shopping cars, most auto loan rates were in the 7.9% range which is INSANE. Equally insane is that used car prices for low mileage SUV’s across the board are way too close to the cost of a new car, and in some cases almost the same as the original purchase price. Finally, some auto makers (I’m looking at you Kia) seem to believe that their brand is punching above its weight class and can charge near luxury prices for what is supposed to be a middle of the road car. When it’s $60k for a Hyundai Santa Fe and $75k for a BMW, there’s a bit of an issue in my eyes.

I was offered 2.9% financing on a three year note with BMW, as well as valet service for maintenance and free routine maintenance. The monthly payment would normally make me want to feint, but I also decided to put 20% down and send quarterly lump sum payments of 1/4 of the remaining balance of the car. It will be paid off this November.

Finally, why BMW when any SUV will get my kids to and from lacrosse practice? Am I keeping up so much that I need to show off my money?

Truth be told I just really wanted the car. I’ve always thought the X5 was a cool SUV, and after years of driving practical, ponderous, up-jumped station wagons if I had to drive an SUV I wanted it to be fun to drive. I can tell you for a fact when I have the opportunity to “go red” (what we call switching to Sport+ mode when the displays all turn red) and mash on the gas it is the most fun car I’ve regularly driven in years. It even sounds cool.

I’ve never cared much what others think about my stuff. 90% of my wardrobe is from Old Navy and I forgot to buy new sneakers for three years. But on the few occasions I have to drive I want to enjoy it. So I got a car I can really enjoy.

You may be asking yourself what’s the point?

Well, the point of this whole blog is about living a mid-to-late-stage financial independence journey firmly in the messy middle. For those who have taken a step back and thought about it, the messy middle is your life. Focusing solely on the end is missing the point. I’m a living example that you don’t have to optimize your career, eat secondhand food, pinch every penny, and track every dollar to live a fulfilling life and still retire early.

Yes, I’m now a high income, high net worth person now close to my FI goals, but only because of the seeds I planted earlier in life. Despite wanting to be able to retire in three and a half years, I’m willing to save a little less and live a little more. Buying this car reminded me why I’ve worked so hard the last two decades. You can chase financial independence and still have fun while you’re doing it.