27 years old
Savings: $935k
Assets/Investments: $125k
Salary: $155k
(AFTER TAX) Cash Flows from Business: $30k /yearly (pretty hands off, variable to some extent) [growing at 12.5% / year; conservatively (up 32% YOY)]
Expense schedule:
$25k (food, living, insurance, and auto) / yearly
(Important note: I allocate $1500 / year towards auto expense, not including gas, yearly, I’ll bring this up later as this sort of acts as me amortizing my future auto expenses when in reality I probably spend closer to $300 on auto per year due to how little driving + wear I actually incur)
Now I want to break down the actual Lamborghini purchase, I’ll keep it clean-cut but could go into pages of dialogue for each category realistically. I would pay all cash for the car in this scenario:
What to look for in the actual vehicle to be as cost effective as possible:
- Must be a Pre-Owned Lamborghini Huracan because they are contender for the most reliable modern day exotic sports car.
- I’ll reiterate here: MUST be a pre-owned vehicle that I observe has already taken the fair value of depreciation for the category.
- Needs to be desirable specification while not being on the high end of the options list.
- Has to be a 2019/2020 car with 5-year manufacture warranty still valid. This includes oil changes, service, and maintenance from the dealership.
- Needs to be less than 20k miles
- $325,000 cash outflow for purchase. This would be the absolute high end of the entire transaction, which would include the car, registration fees, and taxes. I’d prefer to spend less here but that’s contingent on finding a car that meets my criteria and is slightly below fair value.
- Having recently changed tires would be a plus
Let me now break down the ownership timeline for the vehicle:
- I plan to own the vehicle for 8-12months. Sell back to dealer at the end.
- However, at purchase I plan to let my dealer, as well as other dealerships in the nation, know that if they get a customer that comes in looking for a Huracan, I give them the full right to show the customer my car if they think it will convert to a sale. I’m pretty tight to automotive space, so I know this does happen but rarely, it really depends on your car’s specification (color, trim, options) and the preferences of the buyer. The benefit with doing this is that you can effectively have your car advertised through an agreement with the dealer that if someone is willing to purchase your vehicle you would both agree to sell it back to close to what you originally bought it for. Doesn’t happen too often, but I have some contacts that have gone this route with their vehicle and have had it work out in their favor where they broke even on the car.
- If you remember from earlier, I said I was looking for a vehicle with less than 20k miles on them. For those unfamiliar with exotic cars, their owners tend to put 2-4k miles on them a year. Selling before 20k would be something I would shoot for, so buying a car within 13k-15k miles would be ideal.
- I have some contacts at my local lambo dealer, would try and play negotiations at purchase for a signed agreement that the dealer will buy my car back at a determined, papered, price if I come back within x months. This is something that most exotic car owners don’t know they can do and is often a great way to get a set-in stone value for the trade in when you are ready to sell (you need to have the dealer paper and sign otherwise they won’t acknowledge the terms). This is another way of keeping options open.
- At the end of the 8-12 months, or if dealers exercise their strike price for my vehicle, I will sell the car back to my dealership. I will not recover the dealerships fees, tax, and registration fees I paid when I bought the car.
Let’s break down my forecasts for the numbers on this:
($285,000) for car, ($40,000) allotted for taxes, fees, registrations.
($700-$1000) * 8-12 for auto insurance per month (I’ve never had an accident or ticket of any kind)
($5,000) for gas during ownership period (brutal timing for gas prices)
(IMPORTANT NOTE: I have been amortizing auto expenses from my salary since graduation to clear a cushion of cash to cover the gas and insurance) (my other vehicle was paid for in all cash when I turned 16 and is an extremely reliable Japanese car, could probably drown the car in the Hudson River and it would still run just as good)
Change of tires if needed: ($4,000)
SALE of Car back to dealer:
+ $270,000
Maximum Loss of $61,000, if I don’t win on any front of negotiations, timing, specification, or options.
Now that I have everything papered out, am I willing to devour $61,000 and never see it again? For a car that I will only own for maximum of 12 month? As a finance major, I can tell you this would be an unwise project and that you’re better off putting the money back into a stable investment vehicle that clears you 7% annually into perpetuity. However, as a 27-year-old man with the greater 2/3’s of his entire life ahead of him, I would look at things a bit differently. I think the question you must ask is: do you think the $61,000 loss (a 6% loss on my net worth) is worth the memories, people you’ll meet, experiences you can have at 27 with your dream car from when you were in elementary school? Family & Friends aren’t looped in on this and it would come as a surprise to them, and my younger brother (17) would certainly freak out a bit.
Would love to hear your thoughts.
How do you have $1m savings with that salary? Equity injection from mom and daddy?
I work at a startup, liquidity event last year where I sold stake for ~$700k. Parents make a combined $105k yearly before taxes.
Congrats for the liquidity event!!. If it’s mostly a one off, I’d be conservative and not waste that much money on a car tbh, but those are my just 0.2
Yeah dude don’t do this. That $700k liquidity event is a once in a lifetime blessing that you can use to generate serious wealth. You are giving away quite a bit by doing this.
Lambos are for rich people. Not poor people who had a lucky windfall. Turn that $1m into $10m over the next several years and buy a Lambo when $60k is truly an inconsequential number to you
I don't mean to judge, and I understand everyone has a different relationship with their parents. But don't you feel guilty that you're even thinking of buying a lambo when your parents make $105k/year? If the situation were reversed, how would you feel scraping by on that income while your son drives a lambo around town? Again, not trying to judge here, but this whole idea sounds like a disaster. Crypto is volatile. It's not going to be straight up and to the right forever. Actually, I am judging you. You sound extremely selfish and self-conscious.
YOLO
If you’re comfortable pissing away $61k (maybe more) over the course of 10 months, why not just lease a really nice car? You’ll piss away $60k over the course of 3 years. Much better deal IMO
You can do whatever you want with your money. I personally would get more joy out of burning $60k than buying a Lambo. But to each their own. No one can answer this question for you, because the utility derived from spending that $60k is 100% unique to you
I like that you brought up the idea of utility. I want to try and break down some relevant components that come to mind:
Driving experience / Cost : While I wholeheartedly think Ferraris handle better and feel more engaging to drive, the new RWD Huracan EVO has been credited as being the first of modern lambos to actually deliver on a driving experience that feels authentic and engaging. So while I'd rather own a 2015 Ferrari 458 (last naturally aspirated v8 ferrari, good price appreciation going forward) I have to limit myself to newer cars that still have the manufacturer warranty intact, to avoid paying out of pocket for maintenance costs and oil changes.
Sharing the experience : 90% of the fun is sharing the experience with others, and putting as many people as possible in the passenger seat is part of the spirit of ownership for me. You can put a lot of smiles on the faces of those sharing in the experience of your own personal roller coaster for the road. Responsibly, of course.
Growth / Bucket List: I'm only getting older, and almost certainly the novelty of an exotic car will continue to wear off going forward. Can't see myself enjoying the sounds, attention, and comfort, or lack thereof, of owning an exotic car when I'm in my 40s. There's an argument to have my fun while young but doing it in the most realistic cost-scenario.
I wish I was friends with you. If a friend of mine had a lambo and I got to sit shotgun that would be a memory that lasts a lifetime.
I am in no position to give financial guidance on this sort of purchase, but I hope you make the right call. +1 for doing the math on the Huracan in the first place.
On the utility front, I am a firm believer that the usefulness of money is a bell curve, and we can only truly enjoy that money from about 20-55. A lot of us over save, and I am guilty of this too, but I think it's important to spend money making memories and not something material like a $50k watch while we can. This being said, is $60k worth the splurge to you? Or do you have other hobbies like traveling? It's all subjective, so I would just strongly ask yourself if you'd rather blow $60k in one year on a car and those memories, or if you'd rather blow that money taking exotic vacations or whatever your other hobbies are. Many different ways to spend that money and make memories, just comes down to capital allocation IMO.
I mean, I wouldn’t. But it seems like you broke it down really well, and have thought out the downside. One thing to think about is that people will treat you differently with an exotic car, good and bad. I’ve gotten a few comments about my AMG I recently purchased, where before I had driven around in a ten year old car fairly stealthily. So be prepared for that.
What do you mean?
Girls in LA will get on their knees to have you take them home as soon as they hear the sound of a lambo. Teens at Rodeo Drive will line up to take a pic with your lambo. Mums on Bumble will divorce their Toyota Camry husbands to have their midlife crisis heart stolen by the lambo dude. Guy in the valet will think it is his lucky day. You'll suddenly get bunch of new friends. Your coworkers, that have balding heads but wouldn't do anything about it, will be jealous of your car, but console themselves by calling you a spendthrift. Old money will call you new money.
In essence, your whole life will change, but it is all worth it because you'll be getting laid more frequently than you did before, which is all that matters.
For instance when I pulled up to the tire change place with a flat tire, the laborer told me I would need a new rim because I had cracked it. I was like "Damn, what the hell..." since it had been only a 10 days since buying it, and I'm already having to throw down a grand on a new wheel. He responded "It's ok, you can afford it". Comments like that. I also work around contractors and others. I still keep my ten year old car as a beater, and I worry that my contractors and other workers (such as the guy who cuts my grass) will see me driving the AMG and want to charge me more $.
My friend, who I've been fairly secretive about my finances with, was trying to figure out whether I was living above my means or not. And I get it - he's only curious. And then I met up with an older mentor for lunch who's probably worth $30M who drives a 2008 Toyota Tundra - "Wow, I'm in the wrong business" he jokingly said. Then I felt like I needed to rationalize my purchase to him.
No, a super exotic car is probably not going to change your sex life (or it hasn't for me). Most women care more about your personality and confidence than the car you drive. A lot of them aren't super shallow and I never have surrounded myself with those who are. Cut toxic people out your life - you are the average of the 5 people you spend the most time with and as you get older, you should allocate your time accordingly with those who bring value to your life.
And having the attitude that your friends are going to be jealous will probably make them loathe you. They shouldn't/won't care.
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I model all my purchases out, including the $30 dinner which is an opportunity cost of 3 chipotle bowls in my eyes. But, on a serious note, I see where you're coming from. I've been using an excel sheet to track my personal finances since my undergrad days, religiously, to find out where I might be spending more than I need to or conversely where and when can I apply savings towards wealth growth.
DIG. two meals for $15.I'd also do a $5000 NA (1.8) instead of my current ND. I'm cheap tho. live downtown JC (Work downtown, got a million in the bank)
If this is true then you DEFNITELY aren't the personality that will pair well and get the "most" of out a Lambo.... (which btw isn't really anything all that good)
Have you built in a case for a potential recession where the resale values of a supercar just craters? What if the used car market goes back down in the prices (right now you are seeing cars sold for an amount which is higher than what it really should be if you factor in depreciation - a car 3 years older should be at sale price minus 3 years of accel. depreciation but it’s at sale price right now. If the market crashes then I could very well see it go back to being sold at post depreciation price. )
Also, agree that if this cash was built up in any way other than income (either main or income on returns etc) then I wouldn’t want to take the risk of losing 60k (and potentially more) on 8-12 months of joy.
Great point. I've thought about this a bit with how prices in the Huracan react after certain milestones in their mileage history (5k, 10k, 15k, etc.) which is why I settled on buying a car that fits the profile I mentioned above, but haven't modeled out with assumptions yet, going to do my homework into how supercar resale prices reacted during the '08 recession.
Makes sense because the way I see it right now most of your financial calc. is ultimately dependent on finding a resale market at $270k. So you really need to be able to make sure that part is watertight (and I see that 60k as more of a minimum than a maximum loss). For example, I think a dealer might be okay with being able to market your car to potential buyers (which makes sense specially if a buyer wants your spec) but I don't think the dealer is gonna buy it from you at the price you are quoting (for example the kelley book value for a 2019 huracan coupe is 265k, which means the dealer is probably gonna buy it from you at somewhere a little less than that in more sensible times so that he can tack on his own value).
I know its super crazy right now because I myself am looking to buy a car for after I graduate and the market is just nuts. the honda dealer in my town quoted a 5k markup on a new accord!?!
Could you possibly rent the car when you feel like it? If I recall correctly, last time I went to Vegas, I saw billboards advertising 24 hour rentals for $999. You could that every time you have that "itch" to drive the car. Also, you could set the funds aside, and if you end up going to Florida for vacation, for example, you could rent a Huracan and enjoy it there as well. Also, if you want to drive a more luxurious car, you could use that money and rent a Rolls Royce or Bentley for a day or two.
I agree with Rice above. You’re floating around damn near 30% of your savings on a super car in the most ridiculous of economic times right now. Bad idea
I am a car guy and I still say no. If you want practical, buy a Miata. If you don't, buy a Countach.
Why all the Countach hate? I was an 80s/90s kid
Genuinely curious....how are your savings so high yet your annual income (relatively) low? Did you just save/invest extremely well early on? That's very impressive, so just wondering
Attached in a response above: "I work at a startup, liquidity event last year where I sold stake for ~$700k."
I'm fairly aggressive with savings/investments and keep expenses low for the most part.
Ahh got it, well congrats, that's huge! Unfortunately I'm going to agree with the others; it's just not financially smart to buy a supercar with what I've seen of your finances, and with this current market in mind. You're riding off the high of a lucky liquidity event but you don't have the annual cash flow to sustain a lambo, especially with all the maintenance that it might require. You could definitely lease a really nice car though. You're still super young so you have plenty of time to build more stability before buying a supercar.
the car would appreciate due to scarcity. your max loss, assuming no accidents etc, would be maintenance and to be conservative assume a 20% WORST case value loss on the sale
your challenge would be getting your hands on one under 20k miles
fuck yea you should do it. will regret it 100%. what city u in tho
It’s not hard to find a 2019/2020 Lambo under 20K miles.
is that b/c u put a period at the end of your sentence
how have you saved more than a mil if your current salary is 155k (in the past it had to be smaller) and you only could work 6 years max? GME and dogecoin investor?
Attached in a response above: "I work at a startup, liquidity event last year where I sold stake for ~$700k."
Can you afford it, sure. Put another way if instead of 1m you had 900k would it matter - no. Obviously you can't think of every purchase this way, but if you truly want something and it is a key part of your happiness, that's the purpose of the money. Most people will tell you no since they don't get 60k of value out of a lambo. I don't know if you will, only you do. There are people who spend what I consider a ton of money on concerts every year (literally live in much worse places than they can afford so that they can go spend their money on that). I wouldn't do that. But they get a lot of joy that I wouldn't from doing that. Just like I wouldn't get the lambo, but wouldn't blame the person who truly values it.
Your expenses are 25k - that's great. If they were to stay that way you could retire if you wanted. Wealth is measured in time, not money, and based on your assets vs. your expenses you are wealthier than most people here. The MD with $3m in the bank, making $700k after tax but spending $500k per year doesn't have what you have.
There's a big question of do you want to increase your expenses. If you have no desire to, ever (which is a big question at your age), go and do what you want. But if you want to inflate your overall lifestyle at some point, if you want a family and be able to have nice things for them, then that's another consideration.
Where are you located such that you're spending 25k all in?
Also, why not just lease? Likely costs about the same, maybe a little more, but you don't bear any of the re-sale value risk
One more thing - do you have a safe place to park?
Have you considered setting up an LLC in Montana and buying a used car there? Also could look at buying it in Canada and then importing it over since the price in Canada is around 35% cheaper than the US right now (including exchange rate and price difference). Could potentially even make a bit of money after owning it for a year.
Interesting. Will have to look into this more. I know off the top of my head that if you register in Montana you dodge the purchase tax but since I don't live in Montana and would need to drive the car in my state the insurance company isn't fond of the idea and won't recognize you in the case of an event. The workaround to this is that there are specialized insurance providers that only provide quotes for exotic cars looking to go this suggested route; not sure what the premium you pay would be. I'll do my homework.
There are insurance providers that cover the entire country if i am not mistaken. Have a few friends buy an Aventador this year through this strategy but they all live in SF. Ofc there is always the risk of a whistleblower reporting your car so weigh your options.
Have cracked down a lot on this in recent year, at least in my state. Cops look for this sort of thing, and will bring down a world of hurt. This isn't 2015-2018 anymore...
Having been your age, and having bought Ferraris, Jags, Masers and fast German cars… I’d say you will 100% enjoy your purchase. And you will also slightly regret it in 5 years when you see what could have been. Theres a cost to make the dream come true.
Now the cost of running an exotic you actually drive is high though. I went through 2-3 rims/tires a year due to potholes 5k a pop…then you’re looking at PPF and Ceramic on the car so its flawless before during and after. 6-10k. You’ll never see that money again. Again, not bank breaking but it hurts.. and will hurt more so when you’re only making what you’re making.
TLDR, probably wait til you’re making double or triple the cost of the car annually.
Leaning towards deferring this purchase to when I'm older, despite trying my best in the post to find a way to make it seem sound now haha.
You should def make a plan to get into an exotic in a few years.. You won’t regret it! But another posted made a comment and I whole heartedly agree… once you get into an exotic for a year, you will not want to go back into a regular or even sporty car. It will become a permanent expense haha.
I sold my exotics in the past year due to appreciation and them coming off warranty, and I want to say it is hard to drive “just” a fast car.. a la M5 or S6 or AMG the like.
I also discount the idea of renting them. The ownership experience is a huge part of the magic.. the service.. the meetups..the invites to preview new cars, the exclusive track days/driving experiences .. Corsa Pilota driving school.. these are only open to owners.
A statement that was thrown back to me 10 years later was regarding my NA. "the sidewall is an integral part of the suspension design" 195/50s with super sticky rubber did me well.
Have you thought of buying some convertible under 150 grand and keeping that car for more than 4-5 years?
Look at what the automotive press buy They stretch themselves and it's MR2s S2000s and MIATAS.we can afford more, but why?
I don't know how you can own/drive a lambo for a year, eat the 60k, then go back to whatever run of the mill car you have now. Gotta assume that 60k is run rate, not 1 time.
Another point, how much does it cost to rent a lambo for the weekend? Probably break even, maybe be ahead, just doing exotic rentals every weekend, or at least every weekend you wanted to drive it.
This is such a comically bad idea lmao. Bless up for the exit though.
Why?
Am I the only one who thinks almost everyone on this thread is extremely lame? This guy had a great event that netted him $700k and wants to spend <10% of it on something he clearly enjoys and spends a lot of time researching (luxury cars). The whole “keep growing your portfolio at index rate” while to an extent is true needs to be taken with balance. What’s the point of having $10MM in the bank at 60 if you’ll be too old and frail to spend the money? I feel like many of you are choosing to be pathetic miserable people and trying to drag OP down to your state of misery. Some of you no doubt are jealous that OP has this opportunity to get a Lambo and intentionally giving bad advice.
I think the best advice given here is the exotic car rental idea where you can lock in a fixed loss and trade the variable risk of depreciation, and market risk off to the company you’re renting from, especially given the fact you will probably will be only driving this on weekends. $60k in and of itself isn’t that big of a deal considering your status, assuming that the loss is fixed.
OP isn’t the only person in this thread who can “afford” a lambo.
He’s not spending $60k, he’s spending $350k and he *thinks* he can recover all but $60k of that. In reality, he could probably lose up to $150k on this depending on where this crazy car market goes and his ability to sell the car.
This guy has the opportunity to have $10mm in his 30s. That’s the time to buy a lambo
I agree with you, but not everyone needs or wants $10mm
$10mm in his late 30s “maybe”. And by the the time he’s 37 or 38 he’ll probably be settled down with a wife and maybe a young child. He can’t just take casual weekend road-trips driving with his friends in the same way that he can now. You’re also asking him to be in a state of perpetual misery for 10+ years to do something he enjoys and can afford today.
You’re bringing up resale risk but as I mentioned if he rents that’s not really an issue.
You must be in your early 20's... If you're "old and frail" and 60 then you have had a horrible life. If you think having a few million bucks at 25-30 and partying it up in NYC or Miami is living life, then you really are immature. Trust me, there are things you don't even know exist waaay above whatever you think is enjoying life... and it's not 20 or 30 year olds doing it.
Yeah, I’m aware there’s a fun life for those who make real money (8+ figures). Most people who make it in though either inherit, start their own business/get involved in a startup, or grinded their way to the C-suite of a major company. Living as a frugal person and avoiding even occasional purchases/renting that makes you happy in the hopes that the SPY does wonders for you is not how people make it in that club.
Either way, Evo or Performonte is the way to go.
Attached above: "While I wholeheartedly think Ferraris handle better and feel more engaging to drive, the new RWD Huracan EVO has been credited as being the first of modern lambos to actually deliver on a driving experience that feels authentic and engaging. So while I'd rather own a 2015 Ferrari 458 (last naturally aspirated v8 ferrari, good price appreciation going forward) I have to limit myself to newer cars that still have the manufacturer warranty intact, to avoid paying out of pocket for maintenance costs and oil changes."
Hard to argue with the Perf. If I had $10mm I would sink into one long term.
Give out like $20k-30k to charity
I'll have one of those too please
Are you open to other whips? You could probably find a 911 Carrera 4S for 115k. Idk if it is worth it to go full send for such an expensive vehicle with literally zero practicality. People overlook this more than you think. You cant take it to go grocery shopping, or anywhere really. Do you already have a car? Idk, I like a fast car I can daily without fretting if I leave it street parked, in the sun, under a tree with sap, etc.
Just my $.02.
They seem great until you own one. Rent, don't buy.
That's what the DuPont Registry recommends - it "takes the stress out of the ownership and maintenance."
Unless you spend time studying the exotic sports car market it is best not to buy. I do, so yes getting an Evo or performonte is worth it long term and short. But stay away from the base Huracan model.
Attached Above:
"In a world heading towards everything being fully electric, the Performante is a final swan song for enthusiasts. EVO is derivative of the Performante platform, however, it doesn't benefit from the ALA system (trick aerodynamic system that contributed to the car holding the fastest time around the Nurburgring) and a big missing component is exclusivity. The Performante was made in limited numbers whereas the EVO, while being a dampened evolution of the Perf, is a production car with no cap to how many are in circulation. If you can write the paycheck, you get an EVO. Long-term, the Performante is where I'd want to put my money."
this thread is just stupid
Just rent! Don't do it trust me! Grow that 900k to 10 million and then ball out in your 30's. In reality, it's not worth it to buy a lambo that will depreciate in value. No one gives a fuck about what car you drive. Most people won't care and it doesn't matter to them.On top of that you would be attracting a lot of unwanted attention unless that is what you want. I think staying lowkey is the way to go. That's my opinion though.
How do you suggest turning 900k into 10m?
If you find it at a price that will allow you to sell it for more than what you have bought it for, that would be good. I don’t think a used car will depreciate much with the current supply chain issues and inflation.
Sounds like you have a lot of insecurity. If you do end up buying it, don't forget to post a photo on LinkedIn and Instagram and Facebook. Also mention how deeply humbled you are with this purchase so people don't think you are rubbing it in. Good luck!
my 2 cents:
1) I personally consider luxury items to be justifiable only when the kind of money I spend on it no longer seems egregious to me. For example, when a $3000 bag means the same to me financially as $300 or better yet, $30 bag, then that’s when I truly have the ability to afford something like that.
2) really consider the other things that you want as badly as this lambo, and see if you’d rather allocate 60k to those things
lastly, I don’t want to derail the thread but I’m truly curious about this startup gig that gave you this windfall. Trying to make a move to startups myself, and a major motivator is the equity upside potential. So, OP would you care to share your thoughts on the below -
- What are the characteristics of a startup you’d be looking for, if you were to do this again(I.e. join a startup in the hop that it’ll be successful and bring you a liquidity event like this)?
- how did you approach the startup job search process/eventually chose this company?
I won't tell you whether or not you should buy the car. If it were me, I wouldn't utilize the majority of my liquidity on a luxury--and depreciating--asset.
A couple of considerations on your forecast...
- Other Maintenance: You're looking to buy a high-performance machine. I think most supercars come with 3 years (you said 5, so that's a good deal), unlimited miles of bumper-to-bumper warranty which will cover the major items. It's my understanding, the Huracan has annual maintenance of $1k for oil change/filters/inspection, $2-4k for spark plugs, gearbox oil, etc. and you've already included tires. I would really comb that warranty to see what's valid. Because there may be fine print you're ignoring
- Depreciation: You're assuming the car will only depreciate ~$15k ($285k at purchase, $270k at sale). That's ~5% depreciation for the period. I would maybe lower the sales price a bit more to see if this is still economically feasible for you
- Taxes: I'd assume the sale of the car would be subject to tax. But I might be wrong
Other considerations
- Worries: Given your goals to sell back the car, how much would you really be driving this vehicle? Would you be nervous every time you drove it and parked it somewhere away from home?
- Substitutes: Couldn't you just get a Porsche, a Benz AMG, etc. instead? Cost would be significantly lower and you'll likely still have fun with the car
- Rent (try before buy): Why not rent a Lamborghini Huracan for a week? If you don't absolutely love it and can't imagine yourself without it, then imagine how you'd feel about it in 8-12 months
Again, just my two cents. If it were me, I'd look to invest that capital. Supercars will always be there, financial stability may not.
NA V10s will not always be here. No substitute for that though, when supercars lose the sound and emotion, they cease to be supercars.
Don't do it.
Sounds like you're knowledgeable enough and have the contacts to start a YT channel breaking down this sort of info for others as well as showing off cool cars. If moderately successful and considering your current age, I'd bet a YT channel would get you more laid.
My dad met his wife of 5 years by owning a GTR. She wasn't into cars, now is. Also, she makes more than him. Anecdotal, but I don't like this argument everyone uses. Might not be the case in NY, but this car will get attention (good and bad)
I think the point made about whether you're gonna be happy to resell and downgrade back to whatever you drive now is a good one. It's often much easier to say you'll just resell then to actually do it. For the hobbies/passions I'm really interested in if i'm investing into it its because I want to feel real ownership over my purchase and I want to keep it for a long time (or eventually resell, but only to upgrade to something better or newer in the future). I personally take maybe 2-3 weekend trips a year out with a rental 911 and that's enough to fill my fast car novelty for the year but i'm also not really car guy.
I bought and sold exotics wholesale for a living. One of my biggest customers is younger buyers who got an influx of money and bought a Huracan. I would get around 10 a year. The story is usually always the same; started a company, start-up employee, or got an influx of cash. They would love the car for the first 2-3 months and get over it, and i would step in and sell it for them. Half would go to a range rover/gwagon and the other half would go to a 911. I love lamborghinis, but they are absolutley brutal to daily drive. the ingress of getting in the car makes is a hassle to do short trips and you will start to rethink your trips around it, which is not how you want to drive your 350k car. the bigger issue is the dimensions of the car make it brutal for normal driving in terms of potholes, parking, and most importantly height. the car is so low and roads are not designed for cars that low with ground effects. One bad driveway can leave you stuck or worse rip apart your lip. You HAVE to at a minimum account for buying 2 extra lips for the car, it will happen. It sucks but the world we live in people will door ding your car, rock chips will happen, and there a assclowns that will sit on your car to take pictures and scratch it, you have to account for these things, and Lamborghini paint is not cheap. You can PPF but these are all extra expenses you have to take into account.
With everything i just said, that is for daily driving. If this was a second car, you wouldn't have to worry about these issues. I daily drive a Brabus e63 and love it. I have a lexus suv that I use for trips that arent as viable in a car with 732hp/850tq thats an inch from the ground. If I were in your shoes, I wouldn't make the purchase. If you are dead set on purchasing an exotic, get a 911. You will enjoy the drive, its a faster vehicle, and you can daily drive it every single day like a normal car. It doesn't garner the attention of a Lamborghini, but are you buying the car to enjoy it, or impress others. A 911 also holds its value.
You are unbelievable, pot holes, not all roads are you going to have that experience gee, sorry dude but these cars are not for everyone hence, why they are built that way. Really, depends on your interests and cash flow. Those who love these and can afford it should go for it. The value that they bring is well worth it. And I am not talking about buy to pose or for chasing women.
I’d say don’t do it as you had a one-off event. I do have a E63s AMG wagon and the dealer calls me at least once a month trying to get it back from me as MB is not sending V8s to the US anymore. It’s worth more now than when I bought it in 2018. The car market is nuts at this point.
G wagon is so hot right now from around 2017 upwards. They are appreciating so well. The Urus, too.
As a side note, I forced my wife to go to the Lambo factory on our honeymoon and in Jan went with my business partner to Modena. Both are totally worthwhile. If I ever get super rich, I am getting a Miura SV.
I do hope you do. Driving a exotic sports car is extremely satisfying and addictive.
Buy a 991 GT3 and lose next to no money
We've covered a lot in this thread - but what I'm most stuck on is your living expenses. You only spend $25k a year all in? It's hard for me to wrap my head around that part of the equation.
He must be living with 5 roommates or live with his parents. Can you imagine living in a small apartment with roommates but somehow having a Lambo? That would be ridiculous
Yeah I can’t get past this $25K per year expense on rent, food, and auto. I would love a breakdown. I live in a LCOL-MCOL city and probably spend double that and don’t have any car payment only insurance to pay for.
Where do you live? If it's a major city why not consider a car club membership? And if you want to sell it back to a deal after putting significant miles on it, why not lease? It's not like you'd make a profit on the sale, especially for a used Huracan. I'm asking as an avid supercar enthusiast in Manhattan who has considered ownership of a car and storing it in NJ (Jersey City) vs continuing my club membership which allows me to rotate between cars but doesn't allow me the flexibility to take a car out whenever I want sometimes due to it being used by another member.
Feel like leasing for you is the best option given your inclination to rotate out after a year or so. Why own? Genuinely curious as it's a topic I've been exploring. Especially if ownership won't result in a return upon sale.
Check out Hudson Stables in Hoboken for storage as well
So, if a three bedroom house cost $350000, and a person does not make double that, they should not buy the property? Is that your thinking ?
Can’t afford it. Wild that the thought that this is close to plausible is astounding. If your plan is to paint your ceiling red the day you turn 45 then go for it, otherwise you should take advantage of the low interest rates, buy a house, invest the rest, and know you’re set for retirement. Your liquidity event is literally as lucky as winning the lottery. If the magic genie granted you a wish to experience these liquidity events every 2-3 years then yeah you could do this.
I think you should consider the benefits here. You will have an awesome year with the Lambo. You could also lend it to your brother for prom - that would be baller.
Pull the trigger bro. Everyone wants you to get the car. Tell us you got it.
If you talk to all the serious car guys and collectors, they will all tell you the Lamborghini Huracan is the most fun to drive. Have you drove one before, do you love it, and do you plan to track it? Do it!!
You did all this analysis and yet you haven't even articulated why you want to buy a massively depreciating "asset" (liability). To get to the point quickly, your life in no way is up to par with the image of someone who owns a toy car like a Lamborghini. It's clownish. Are you going to park this in your garden level condo association parking lot? You're going to drive this to the supermarkets every week to get groceries? And believe me, the women you attract with this either 1) you can't afford or 2) won't want you when they see you're a nerd number cruncher that just rides around in a Lambo.
You have a MASSIVE head start. Just invest $875k into the NASDAQ or S&P 500 and just leave it. As much as you want to "enjoy when you're young", you'll feel like an idiot once you buy it. Take $50k and plan out 2 really nice vacations per year for several years with friends... maybe pay for the hotel suite so you can really enjoy your time.
There is the possibility that he sells it for more than he bought it.
Depends on the utility you derive from ownership. I come from a car family, dad's had a few nice toys. His income is the same, savings (outside of retirement) is much lower than yours, but he still owns them comfortably. Similar to him, cars are about the only thing that make me happy. To the extent it effects decisions in my life that are mostly unrelated (do I really wanna move to NY, professional decisions like that). Similar to your Chipotle bowls, I always consider the opportunity cost of spending money on anything other than cars and investments, This is an opinion shared by very, very few here.
Try renting one for a few days, make sure it's a span with nice weather. That will help you immensely. Wait a few more days, see if you crave the experience again. I can personally say there's literally nothing I'd rather spend $60k on than a car. For an 8-12 month timespan, I would lease though, or at least model out that cost.
The answers you seek depending on who you ask. This is a finance forum. Typical response is "build your investments 10x, then car becomes a rounding error". This is dumb logic imo. People here live in NY (makes this probably not worthy buying), and like to travel (if you like this more than cars, do this). Go on car forums, they'd call you an idiot for not pulling the trigger right now. You're probably better qualified to afford it than anyone on those hypothetical car forums anyways. You definitely have the money to comfortably practically own it. You obviously have put a ton of thought into buying this. Car decision is good, checks all the right boxes. NA V10s are a dying breed, wouldn't expect much in the way of depreciation. Mileage, costs, warranty, year, all checks out from my knowledge. Not sure if that's an accurate insurance rate though, would check on that. Gas expense seems high as well. I'd chop that in half, at least. $5,000 in gas is 10k miles @ $5 a gal. Those are daily driver numbers, and if you're looking at dailying this, this whole conversation becomes different. If not though, gas expense can take a haircut.
I say go for it. Not rn tho. Car market is insane. Wait 2-3 year, then ABSOLUTELY do it. Little bit more savings, little bit less crazy market. Just me though.
I’d have to disagree with the market rn. If you watch Hoovie’s garage or any other automotive yt channel, they give a different story: market is going down.
Waiting 2-3 years for NA super cars is risky imo. With the push for electric cars, NA cars will definitely keep going up. I’d say wait till summer 2023 and then buy. Market will definitely dip at that time.
I would say if you can leverage your entire savings to get a business valued at 4 or 5 times that, then you can buy a business that has an EBITDA of about $1M then you’ll really be balling as you pay down an SBA loan. You should be able to buy a business that is fairly self sufficient at that price, and if you wanted to work in it as CEO or CFO that’s an additional couple hundreds thousand added to your pay/SDE over your current pay.
Probably not the right thing to do but I get it. I love cars more than any other material object and have allocated a disproportionate amount of my earnings to them over the last decade.
And I get people trying to convince you out of it. But Jesus so many people on this forum and industry are just complete wet blankets.
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