Is buying a 55-65k sports sedan a bad idea for my situation?

The cars that I’m (33M) interested in are the Audi s5 sportback or BMW m340i. I plan to get a used ~2021-2023 model year (ideally with CPO) in the range of 55-65k CAD in the next year or so (depending how long it takes to find one I like) and keep for 10+ years if possible. Would be paid entirely or almost entirely (75%+, rest in a 2/3-year finance) in cash. I’d expect insurance, gas and repairs to cost $6-8k/yr. My wife (33F) and I currently have a 2024 Toyota highlander as the family vehicle (which would be kept) and an older 2011 Nissan rogue (which we would sell), both owned outright.

Im fairly certain the car won’t impact our goals too much but I’m interested in other viewpoints. What are PFC’s thoughts on if this car purchase could potentially offset my current retirement plan based on my current situation below?

Current financial situation (all in $CAD):

Income & Expenses: We are in AB and bring in ~250k gross (~200k 2 years ago), ~160k net (~13k/mo) after taxes, deductions, and any company matching for DCPP & ESP (+30k annually, part of savings/investment). Our current expenses total ~7-8k per month (4-4.5k on house and rental home costs). We just recently had our first child so our HHI will be closer to 160k gross or roughly 110k net for the next year. I would expect kids (want 1 more) to add at least $3k per month once they’re in school and activities.

Net Worth: Our net worth is roughly 1.1 million currently which includes 2 houses (~1.4 M, 700k in mortgages), 400k in investments (TFSAs, RRSPs, Pension Plans and NREG) which are mostly in broad market etfs and ~50k emergency fund in HISA (to be increased to 65k with kids now in picture). We can currently save and invest roughly 8k/mo (includes 2.5k/mo from company DCPP & ESP matching), likely reduced to 5k/mo with kids, which we plan mostly to invest in XEQT or XGRO.

Financial goals: Ideally I’d want us to retire or become part time by the time we are in our mid-50s (~20year time horizon) while keeping the same QoL (maybe some slight lifestyle inflation). I would like us to have in the region of $3.5M current dollars in investments (@3.5% withdrawal rate) and a paid off house.

Overall question: what are PFC’s general thoughts on if our retirement plan is still achievable if I purchase a 55-65k sports sedan within a year?