Thoughts on Cars (subtitle... why you should not buy a Lamborghini)

[SteveO]

What would you rather get with $25K? This:

Great thought but in reality I had to put $600K down on this one. It should cashflow 110K per year though.

I do agree with you. Delayed gratification is sweeter.

 

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[early riser]

To me it is more dependent on income than other factors.
If you make 2 million a year and spend 200,000 on a car, you are still making a better decision then someone who makes far less but who willingly allows a vehicle expense to take up a larger total % of their income.

You shouldn't be shamed for driving something nice, but you should be ashamed for throwing massive total % of income towards a vehicle if it can be avoided.

 

[RHL]

Great thought but in reality I had to put $600K down on this one. It should cashflow 110K per year though.

I do agree with you. Delayed gratification is sweeter.

I thought you said 25k in the thread. I see I misread, I thought that seemed really low.

 

[joocenasty]

If I can pay for my dream car in cash, and not worry about it, why wouldn't I? Doesn't MJ say something along those lines in the book? lol

 

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[G_Alexander]

If I can pay for my dream car in cash, and not worry about it, why wouldn't I? Doesn't MJ say something along those lines in the book? lol

We agree with you @joocenasty. What Vig meant to establish with this thread was was not that you should never buy your dream car....it's that you should not buy a 30k Millionaire (guys who make 30k, and act like a millionaire) vehicle when you are young. There are much higher investment ROIs to be had than a negative ROI on a depreciating, money sucking asset like a car.

• Spend $400 a month on your adwords account
• Spend $400 a month testing product to sell FBA on amazon
• Spend $400 a month on new books and media you want to read / learn
• Spend $400 a month on split testing marketing strategies

DO NOT spend $400 a month on your car in the infancy of your entrepreneurial pursuits.

For those who would argue "But I LOVE cars, and I deserve to enjoy my passions"....maybe the fastlane isn't for you. Delay your gratification and you will be on your way to a better life. Hell, even follow the old RDPD example of "Don't buy a boat, buy a cash-flowing property that makes your boat payment for you."

 

[Charnell]

I kind of made this mistake when I came back from Japan. It wasn't a huge burden, but I still have to deal with the car. It's an '05 black Cadillac STS, all paid for, but those repairs. I'm going to run that car into the dirt.

 

[joocenasty]

a

We agree with you @joocenasty. What Vig meant to establish with this thread was was not that you should never buy your dream car....it's that you should not buy a 30k Millionaire (guys who make 30k, and act like a millionaire) vehicle when you are young. There are much higher investment ROIs to be had than a negative ROI on a depreciating, money sucking asset like a car.

• Spend $400 a month on your adwords account
• Spend $400 a month testing product to sell FBA on amazon
• Spend $400 a month on new books and media you want to read / learn
• Spend $400 a month on split testing marketing strategies

DO NOT spend $400 a month on your car in the infancy of your entrepreneurial pursuits.

For those who would argue "But I LOVE cars, and I deserve to enjoy my passions"....maybe the fastlane isn't for you. Delay your gratification and you will be on your way to a better life. Hell, even follow the old RDPD example of "Don't buy a boat, buy a cash-flowing property that makes your boat payment for you."

ah i See thanks for the clarification friend.

 

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[jilla82]

im not a car guy...so when looking to buy a car earlier this year I specifically looked for something used that was really popular w/ small business/entrepreneur types.

Found out that the first generation Scion xB's were/are really popular with that group.
Tad bit ugly, but great mileage, cheap, and tons of cargo space.

Found one on eBay for $7K w/ only 50K miles.

 

[Vigilante]

 

[Vagabond 007]

My problem is I LOVE driving! One of my best memories in life is driving to visit family in FL (I'm in PA). Just me, my music, my thoughts, and car. It was heaven. So unfortunately something I love is also something that has cost me a lot of money over the years.

I bought a new 2003 Cobra when I was 21. Really had no other bills so it was fine at the time. Still have it but I'm getting tired of it. But, now that I'm older I have a hard time grasping a hefty car payment on something that loses value everyday.

I'd rather spend the money on building a business where in the future I can just pay cash for whatever car I want.

 

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[amk]

I think in general, people understand the "if you don't have cash for it, don't buy it" rule when it comes to credit cards. Not that most people follow the rule, but they understand it.

Car loans just aren't seen as the same thing in most peoples eyes. Most people think they're a standard expense; a normal part of life.

People also use their cars to project to the world (and themselves) just how successful they really are. Even if that means making that $800 car payment month after month but eating ramen noodles for dinner.

Most people feel better about themselves living poor but looking like they have money, rather than actually having money but looking poor.

 

[daivey]

nice info-graphic. There is a stat that by 2020, 90% of information will be distributed via info graphics.

 

[SJVC]

The new Model S P85D... 0-60 in 3.2 seconds... I promise I won't buy it on finance though

 

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[CBlacko]

My Husband bought a 2008 Lamborghini Gallardo 2dr Convertible Spyder from a luxury car dealership in Pompano Beach, FL (http://www.fortlauderdalecollection.com/). To be honest he is going through a mid-life crisis I think (approaching 50 soon), but between the two of us we make almost a half mill a year, so it's not like we can't afford it. But quite frankly I thought this was on the edge of sheer insanity (me being of sound mind...lol), but hey if it makes him feel better than what the heck!

 

[biophase]

My Husband bought a 2008 Lamborghini Gallardo 2dr Convertible Spyder from a luxury car dealership in Pompano Beach, FL (http://www.fortlauderdalecollection.com/). To be honest he is going through a mid-life crisis I think (approaching 50 soon), but between the two of us we make almost a half mill a year, so it's not like we can't afford it. But quite frankly I thought this was on the edge of sheer insanity (me being of sound mind...lol), but hey if it makes him feel better than what the heck!

At some point you need to begin spending your money on things you want.