[1fz]

With the year ending, I am finding myself looking to set a new goal for 2022. I would really like to purchase a huracan performante in the next year, but really struggling to figure out when I can allow myself to pull that trigger.

I am in my mid twenties, with a pretty good income. Decent amount of cash, no debt, very minimal investments.

It's so hard to find financial advice for things like this, because everyones comfort level is different. But I am looking for some help to create concrete financial goals to hit before self justifying the purchase of a $350k car, or I feel like I will continue to prolong this dream forever and keep telling myself "wait until you have _ before buying" then never truly feel like I deserve it.

Whenever I search for this type of advice all I see is "don't buy a lambo if you have to think about it" - which is terrible advice in my opinion. Because some people will buy a lambo with $400k in the bank and not think twice about it, and then others will say wait until you have $20m+ NW and still feel guilty buying a car like this.

I know I'm ultra conservative, but at the same time I spend no money and starting to feel quite content (which is never a good thing). So I am looking for some sort of target to hit that will motivate me to push harder and finally pull the trigger on a lambo within the next year or so.

I'm in a volatile business, so curious what % of your NW you'd be comfortable buying a $350k car or amount invested into something stable prior to getting one yourself.

 

[Russk]

You’re going to be getting lots of advice on this I am sure. All I can say is I didn’t buy my first one until I could pay cash for it comfortably. I already owned my first home and had a nice little nest egg in case of hard times.

But I was long past my 20s. I would have done it sooner but I didn’t want to be owned by my asset, rather the reverse. Let’s see what others say.

 

[topcarbon]

No regrets when I purchased my first Lamborghini.
I am on my tenth Lambo and I started when I was 35.
I already had a wife, children, and home. My career was well underway. I can’t remember what prompted me to just do it but I didn’t think too much of it. Just did it. My wife was supportiand that was the only opinion other than my own I cared about.
Too much analysis creates paralysis is the adage that comes to mind.

 

[lambo_dream]

Should be an interesting thread.

I think it depends who you ask. Members on this forum are enthusiasts that would sacrifice other things to own a Lambo and willing to buy one when you have a $1.5m net worth. People that comment under Youtube videos would think it's stupid to buy one without a minimum $20m cash in the bank.

I'd say if you're an enthusiast and this is what makes you happy, if it's less than 10% of your net worth and you're comfortable with the payments (if you finance) then you should be ok. Worst case scenario you sell it after a year or two and you still have 30 years to make that money back.

I've seen some people buy a dream car when they're 60 and not feel much happiness. Might be a case to make if you have to stretch yourself to buy it when you're younger, it will give you more happiness. Im a dreamer without a Lambo too so maybe someone can correct me if Im wrong.

 

[topcarbon]

Should be an interesting thread.

I think it depends who you ask. Members on this forum are enthusiasts that would sacrifice other things to own a Lambo and willing to buy one when you have a $1.5m net worth. People that comment under Youtube videos would think it's stupid to buy one without a minimum $20m cash in the bank.

I'd say if you're an enthusiast and this is what makes you happy, if it's less than 10% of your net worth and you're comfortable with the payments (if you finance) then you should be ok. Worst case scenario you sell it after a year or two and you still have 30 years to make that money back.

I've seen some people buy a dream car when they're 60 and not feel much happiness. Might be a case to make if you have to stretch yourself to buy it when you're younger, it will give you more happiness. Im a dreamer without a Lambo too so maybe someone can correct me if Im wrong.

There are no wrong answers
But keep in mind, each person has a n individual path that is right for them. I am a complete stranger and can only comment on my own choices.

 

[1fz]

Should be an interesting thread.

I think it depends who you ask. Members on this forum are enthusiasts that would sacrifice other things to own a Lambo and willing to buy one when you have a $1.5m net worth. People that comment under Youtube videos would think it's stupid to buy one without a minimum $20m cash in the bank.

I'd say if you're an enthusiast and this is what makes you happy, if it's less than 10% of your net worth and you're comfortable with the payments (if you finance) then you should be ok. Worst case scenario you sell it after a year or two and you still have 30 years to make that money back.

I've seen some people buy a dream car when they're 60 and not feel much happiness. Might be a case to make if you have to stretch yourself to buy it when you're younger, it will give you more happiness. Im a dreamer without a Lambo too so maybe someone can correct me if Im wrong.

Yeah, I am realizing that now browsing through other threads here

 

[Tanman88]

I asked this question to my rich Uncle when I was buying an expensive car when I was in my 20's. He said think of that money to buy the car stacked in front you, then light it on fire. How do you feel, if you don't care one way or the other, then you can afford it.

 

[enawabi]

I’m around the same age as you. My first lambo I bought when I was younger it was an lp-610. I was able to purchase out right ,but I sold it 3 months later to make funds available for a deal that put me in position to buy my current fleet. He little taste I got back then pushed me to work harder.

Moral of the story life is short if it doesn’t change the way you eat or live why not.

 

[surfah]

In my opinion:

If you can afford to buy the Lambo in cash (even if you choose to finance) then do it.

I had goals to pay off my house, be debt free and buy my first Ferrari in my 30's and it motivated me to work harder.

If you buy your toys cash it is a liberating experience

Own your toys dont let your toys own you.

 

[Shark01]

Pay cash for toys....handing over a big check knowing what it meant for your journey is the only way you can truly afford it.

Took me 9 years the first time, and 6 years the 2nd time....learned so much about myself on these journeys.

Financing is a crutch that is too easy to qualify for...these ignorant guys that finance cars for 8, 10, 12 years are set up for failure, and the lender is all too willing to watch you fail. These guys end up paying more interest than we did on our house.

 

[1fz]

In my opinion:

If you can afford to buy the Lambo in cash (even if you choose to finance) then do it.

I had goals to pay off my house, be debt free and buy my first Ferrari in my 30's and it motivated me to work harder.

If you buy your toys cash it is a liberating experience

Own your toys dont let your toys own you.

I mean, buying the car in cash right now wouldn't have any affect on my life financially. Maybe it's an ego thing. When I think of someone driving a car like that, I assume they are really well off. I just feel like I have some ways to go before I fit the image.. Otherwise I'll question if that money would be better off earning measly returns in a conservative investment lol and buying the car when I truly am at a place where I'm financially independent for life.

 

[1fz]

Pay cash for toys....handing over a big check knowing what it meant for your journey is the only way you can truly afford it.

Took me 9 years the first time, and 6 years the 2nd time....learned so much about myself on these journeys.

Financing is a crutch that is too easy to qualify for...these ignorant guys that finance cars for 8, 10, 12 years are set up for failure, and the lender is all too willing to watch you fail. These guys end up paying more interest than we did on our house.

I plan to purchase cash, I feel like that would just make the experience that much more exciting. But do you just open a bank account and put like a % of your monthly income into it? Or put aside money in index funds and pull out a loan against your assets tax free once that account is 2x the purchase price, so it continues to grow and pay like 1-2% interest on it. Can easily recoup that interest amount. Maybe I'm way overthinking it, but I want to have like a strategy to get there instead of just doing it.

 

[surfah]

I mean, buying the car in cash right now wouldn't have any affect on my life financially. Maybe it's an ego thing. When I think of someone driving a car like that, I assume they are really well off. I just feel like I have some ways to go before I fit the image.. Otherwise I'll question if that money would be better off earning measly returns in a conservative investment lol and buying the car when I truly am at a place where I'm financially independent for life.

Good point. I always fund my 401K, Roth and Defined Benefit plan so make sure you take advantage of those opportunities to lower your taxes or build your nest egg.

I was 26 years old when i graduated medical school and took my uncle's advice to dollar cost average into an Index 500 fund. That is every month a set amount of my income was invested into an index fund and all the dividends and profits were reinvested. Its astonishing how much that money has grown over time with very low administrative fees.

Talk to your CPA and FA and design a plan then go get it!

 

[Cliff.1620]

I mean, buying the car in cash right now wouldn't have any affect on my life financially. Maybe it's an ego thing. When I think of someone driving a car like that, I assume they are really well off. I just feel like I have some ways to go before I fit the image.. Otherwise I'll question if that money would be better off earning measly returns in a conservative investment lol and buying the car when I truly am at a place where I'm financially independent for life.

If buying the car right now would have no effect on your life financially then why are you asking us when is the right time to buy?

 

[inmyworld]

I had the same doubt before I got my car. I'm 32 yrs old and my car is due to deliver next month. I think firstly definitely you have to be able to afford it without being harmful to your houses and family. and having a group of friends helps too. My friends who have sport car definitely encouraged me and makes me felt confident when I made my decision.

 

[Jinster]

You asked about percentage of NW to be put into a toy trophy car like a Lambo. I think 5% for the ownership experience to be comfortable. 10% at a stretch. Anything more than that, you are not ready, unless you know for sure your income will significantly and certainly without a doubt increase in the next 1 year. Also, if your plan is to buy, drive and then sell with minimal loss, you are not ready - regardless of whether you manage to pull it off. If you need to save up especially for it for a few years, you are not ready. If you don’t already own your home, or at least have purchased a home with a comfortable mortgage, you are not ready.

Buying a Lambo when you are not truly ready will likely bring you a huge chunk of misery, unless you get lucky - such as having bought before Covid and now the car is worth much more than you paid. But thinking this way is like gambling, and any purchase decision that relies on this means you are not ready.

 

[Nick Joseph Cars]

i have a lambo on order and i am currently 21. i have 5 diverse streams of income real estate investments businesses etc i will be financing half of the car for the purpose of having more cash in my pocket for future real estate deals etc and i have paid other expensive cars in the past in cash it just ended up with me selling it for a real estate opportunity eventually. i have a great debt to income ratio with a good income. good news is right now deprecation is non existent on these cars you can actually make a good profit on them could change at any time though, its always been my dream to own a lambo when the huracan came out for the first time i knew i had to get one eventually. good luck on what you decide

 

[GhostRider]

I didn’t plan buying one. I allready owned 2 Porsches, and I was planning parking some money (not buying a 3rd Porsche) because stocks were going down due Covid. Looking at depreciation rates, Maserati’s weren’t the right choise and Ferrari’s weren’t reliable enough in my mind. So Lamborghini, actually a dream brand in my mind came in sight…
If you buy the right car, you don’t loose the whole amount of cash after selling again. It’s just not liquid anymore. You can sell stock every moment, a car could take you about a year. Real Estate isn’t liquid money either (however… I can sell every property at the moment with 20% profit within an hour…) So when buying a car, you really don’t have to be multi millionaire. Can you live your life without that amount of money for say the next 5 year? I’ve now 3 cars which don’t depreciate alot, not planning to sell them (my kids take care of that when I’m dead after a century or two… 😉). I can live my life at the moment, I live on a bit of work and rental essets. Having stocks for a bit of liquid emergency money. And when I need to sell the fleed, I sell it. Worst case I loose 20/30% on it… I’ve seen stocks falling further… I allways say, better do something you eventually regret, than regretting you didn’t do that something (sounds better in Dutch but you get the point I guess)…
Happy hunting that Perf!

 

[2008SuperG]

Begin a Lambo fund; used the stock market earnings to buy my first Lambo; took a bit but I paid cash and, in the end, was relatively cheap given the initial investment and return gained. Have started Lambo funds for all my grandkids; put 1K in there every year at bonus time; my 7-year-old is at 17.5K already (thank you Apple and GM). My own Lambo fund is still active with an SVJ as a goal; if the prices would just stabilize a bit could be there next year. As to when you are ready; pay cash for all toys and live each day as it is your last. So if you have the cash, go get one and enjoy it

 

[Shark01]

I plan to purchase cash, I feel like that would just make the experience that much more exciting. But do you just open a bank account and put like a % of your monthly income into it? Or put aside money in index funds and pull out a loan against your assets tax free once that account is 2x the purchase price, so it continues to grow and pay like 1-2% interest on it. Can easily recoup that interest amount. Maybe I'm way overthinking it, but I want to have like a strategy to get there instead of just doing it.

Yeah, I just used our brokerage sweep account to store all the money....made 3% tax free (until recently, but I had already bought my last car). I'm just a regular guy with an 8-5 job so I had to work alot of OT and take outside work to make it happen. If I listened to the "% of net worth" guys I would be driving a used Camry.