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Discussion Starter · #1 ·
Hi Guys,

I know this has been asked millions of times, but I wanted my own thread :)

I'm 26, just sold my very first e-commerce business, and I think it's only right to treat myself to a Bull. After all, cars and watches is what I cherish in life and I'm not one of those "save now, buy later" type of dudes. How am I certain I'll be alive in 5 years? Anyways, enough philosophical talk.

I came across a 2020 Huracan Evo AWD. It's literally brand new (800 kms). Around $380k CAD.

My question is: should I pay cash or lease?

I really wanted a performante Spyder, but I can't find one anywhere in Canada, at least from a reputable dealer.

Now, I do have another e-commerce brand I've started and I'm getting into real estate development as well. The cash for those are set, but obviously they can use more. If I pay $380k CAD before taxes, that will be a lot of opportunity cost until I sell the car. Especially given that inflation is rising uncontrollably, there's lot's of opportunities to increase your net worth.

Besides, when the Evo first came out, I was not a fan of the back. The looks have grown on me, but it's still no where near the looks of the performante, at least in my opinion.

Putting $50k or $100k down for the lease, and adding up the monthly payments for the 2-3 year term, I think it would still put me above the depreciation if I pay cash. Also, LFS has a special 4.41% rate until end of June for the AWD Evo.

Any suggestions? I can afford all cash or lease, before anyone says you can't afford it in cash if you're asking the question. Would appreciate some insight from the vets!
 

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2022 Huracan EVO RWD (Ordered)
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Hello @Young CEO sounds like you have a good "problem". My perspective is I buy all my toys with cash and prefer it that way. I know people lease but I have never been a fan of that method of car ownership. I have heard some financial gurus describe leases as fleeces..........but it's whatever makes you comfortable. At 26 and being able to pay cash is a pretty impressive accomplishment. Best of luck with your decision!
 

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2022 Huracan EVO RWD (Ordered)
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OP, here is a thread a tad dated but a good discussion on leasing. I would read through it but I draw your attention to post #9 given it provides some good analysis.

 

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Borrowing money is so inexpensive that I would never pay cash for a toy when the money can be put somewhere else and make me more. Of course there are exceptions to every rule.
 

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Discussion Starter · #6 ·
Hello @Young CEO sounds like you have a good "problem". My perspective is I buy all my toys with cash and prefer it that way. I know people lease but I have never been a fan of that method of car ownership. I have heard some financial gurus describe leases as fleeces..........but it's whatever makes you comfortable. At 26 and being able to pay cash is a pretty impressive accomplishment. Best of luck with your decision!
Thank you bro!

If I find a performante spyder, I'll definitely pay cash as I honestly believe they will continue holding their value greatly. Such a beast of a car.

Will read through the thread you linked below.
 

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Discussion Starter · #7 ·
Borrowing money is so inexpensive that I would never pay cash for a toy when the money can be put somewhere else and make me more. Of course there are exceptions to every rule.
This is exactly my thinking... when you're in an inflationary period, leverage is your best friend to grow your net worth almost exponentially.

I just can't wrap my head around putting around $350k to no use when I can put $100-$150k down, and put the other $200k to work.

Going to be a tough decision as my "monthly income" will be non-existent as my business is sold. So if I decide to not pay cash, the monthly payments will come out of my cash reserves.
 

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^^No one knows your situation better than you so your judgment is the only one that matters! After you pull the trigger post plenty of pictures........
 

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97.0 VT Roadster / 08 Gallardo Spyder
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Young, there’s no guarantee this inflationary time will continue, values will not revert to the mean, economy will still have adequate jobs, etc. which is why so many suggestions here say pay cash for toys. That’s said, I’ve only leased 2 cars ever and owned outright the rest. Personally, i just don’t like the feeling of renting the car versus owning the car. Champagne problems to have, YoungCEO, and congrats to you for being in this position. Good luck on the decision but don’t over think it.
 

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OP, our recommendations are born out of a lifetime of experiences, and are all well intentioned but we each have a life, a canvas that we adorn in our own unique way. It's your brush, your canvas, make the most of it!
Good fortune!
 

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Inflation will continue to spike until Fall, as that’s when the big government cash giveaway ends.

chipotle doesn’t have enough workers because the Amazon’s of the world have to pay $20 per hour in order to get employees(entice service industry workers or covid paycheck recipients to work for them).

eventually chipotle and others will have to pay $20 per hour or their financials will get crushed.

$20 per hour is here to stay, as I have never seen an employee accept lower pay.

In Fall, barring a spike in covid again, inflation will level out, but everyone without a college degree will have gotten a massive pay raise. This dilutes the purpose of a higher education.
 

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The one thing you never know is what tomorrow will bring. Think of really successful hotel and restaurant owners that are broke now. No one can see the future with any certainty. Sure there are good estimates like Angel but no one really knows. Buy a car you can pay cash for and not worry about it. If you lease and there is a large downturn in your market, you could be strapped with large lease payments and no way out. Spend disposable income on toys. If you have the cash and choose to finance part of it to keep liquid cash then still put a very large down payment up so you can NEVER be upside down in the car. Lee
 

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Discussion Starter · #13 ·
The one thing you never know is what tomorrow will bring. Think of really successful hotel and restaurant owners that are broke now. No one can see the future with any certainty. Sure there are good estimates like Angel but no one really knows. Buy a car you can pay cash for and not worry about it. If you lease and there is a large downturn in your market, you could be strapped with large lease payments and no way out. Spend disposable income on toys. If you have the cash and choose to finance part of it to keep liquid cash then still put a very large down payment up so you can NEVER be upside down in the car. Lee
Thanks Lee! You always give out solid advice.

I spoke to my rep this morning, they said at LFS want's at least $100k on the lease given I'm 26 years old (odd). There's no way in hell I'm putting $100k down for a lease. I might go the finance route to keep some of the cash disposable, but I will be putting a large downpayment so that if I ever need the cash short term, I can just sell at a $30-$50k loss which I honestly don't mind. Otherwise, I'll probably lose $125k in 2-3 years, which again, I don't mind given a bull is what I dreamed of. The Residual on the Evo is around 67% right now. So LFS thinks the Evo AWD coupe will be worth around $230k CAD in 3 years.
 

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Thanks Lee! You always give out solid advice.

I spoke to my rep this morning, they said at LFS want's at least $100k on the lease given I'm 26 years old (odd). There's no way in hell I'm putting $100k down for a lease. I might go the finance route to keep some of the cash disposable, but I will be putting a large downpayment so that if I ever need the cash short term, I can just sell at a $30-$50k loss which I honestly don't mind. Otherwise, I'll probably lose $100k in 2-3 years, which again, I don't mind given a bull is what I dreamed of.
Good plan
 

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I can just sell at a $30-$50k loss which I honestly don't mind. Otherwise, I'll probably lose $125k in 2-3 years, which again, I don't mind given a bull is what I dreamed of.
YoungCEO, if you have so very much disposable money to not care about losing $30K, $50K or $125K in a short time on a car, then why bother to ask anyone on advice as to lease or buy? If not, may I suggest you buy a great pre-LP or LP Gallardo and lose only a fraction of that if not gain it in appreciation? You can get very good condition, sub-10,000 miles, pick your color, LP for $125K, and very much "a bull". No, it's not a Huracan or Aventador but a darn fine Lamborghini and super sensible in many ways. Own it for 2-3 years, sell it for little to no loss, then give the money to charity if you want to part with it.
 

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Hey, I'm 26 too and just ordered a Lambo 2 months ago!

I didn't have the option to lease because I live in a backwards country and I'm pretty young so the deal wouldn't be in my favor. I always end up paying cash on cars. And judging by what you said, if I were you, I would just do it and not bother with leases.
 
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