Austin, TX · Member since 2009 · 15 posts · 1 vote
Alright so, other than my introduction, this is my first post here. I have been thinking about this idea for a while, but I need some perspective to un-noobize it.
Owning a Lambo is definitely one of my dreams in life and I hope to achieve it. I'm a senior at the business school at UT and I'm graduating this December. I plan on working for a while to build up some cash and then purchase a home around $100-150k as my first home. Now I'm assuming my salary would be able to afford a $1500 monthly payment for my mortgage and $400 for my car payment.
My idea is why not swap the two payments. I want a used Lambo to avoid the depreciation costs. A used 04 Gallardo runs for around 90k. I would use the $1500 per month to the car on a 60 month lease and $400-600 for the mortgage payment.
Then once the car payments are done, that frees up $1500 per month and I could purchase another house and begin to lease out that house or the original one.
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
17y
You all have it wrong.
To afford a lambo right off the bat, all you need to do is become a big wig at AIG, screw everything up and get a few million in bonus money from your fellow tax payers.
Edmonton, Alberta · Member since 2016 · 13 posts · 2 votes
10y
@Tom Doan
When my business partner was running his software firm in the late 90's to just before the bust he bought a lower end sports car for cash in 2002 (65K at the time so 87K today) so not Lambo cost but still a big chunk of change.
It's totally doable.
I'm speaking from having had money and lost it due to slow and bad deals in land development.
Buy the car.
Insurance is actually less for his sports car than for my 1992 Chevy Cavalier because I've had a big ticket last year (never bought a car or a house, kept all my money in cash and deals then went belly up). He bought the car then a house in 2006'ish. What I've found is that his $280K house is now valued at $450. Markets here don't change that much (not like the ups and downs in the States) and we went through a big change in 2008 where houses went upside down in some cases but are now up again.
He left about $150K in a mutual fund that dropped in value in 2008-2010 by about 30%.
He has rental property that is paid off from his family.
Here's the thing though, when you lose in business credit is very hard to find and IRS will seize assets and make your life miserable (been there done that in Canada) and servicing a loan for a car like that isn't something that creditors will accept. He got to keep the car when we lost everything at the Silicon crash because it was paid for in cash.
Investor · Highlandville, MO · Member since 2015 · 21 posts · 8 votes
10y
For a combined monthly mortgage payment of $1500 i could sell you 5 of the houses in my portfolio. Those houses would bring in about $3300 per month and generate $1500 in positive monthly cashflow after you factor in vacancy rates and turn over costs.
There you go. You now have self replicating appreciating assets and a few choices. You can now:
A. Buy your Lambo guilt free, and cost free.
B. Keep taking the bus for another year while you grow your portfolio some more and then buy 2 lambos, and still have a nice nest egg feeding itself.
C. Forget the lambo. Keep growing your portfolio for a few more years and feel like you own a whole fleet of Lambos when you wake up one day knowing that you have consistently made proper financial decisions for a long enough period that you will never worry about money again.
Real Estate Investor · Appleton, WI · Member since 2014 · 19 posts · 6 votes
10y
Read Rich Dad Poor Dad.
Cre8 assets to buy your liabilities.
It would be best to first cre8 enough passive income to afford the payment on the car. Building passive wealth usually takes a while.
Think of ways you can buy assets, add value and sell them for more. Possibly BIR strategy, flipping or wholesaling. These may get you the car quicker but lose you tax advantage and passive wealth down the road as you seek newer shiny objects.
I'd ask yourself why the car is so important. What feeling does it invoke?
With a good self analysis and a little more study you may choose to put off the instant gratification for a future lifestyle.
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
9y
The probelm with dream cars is the excitement wears off very fast, after a year you will be thinking about getting something more practical.. it's like that hot GF, who is actually a complete bi$#@!
I guess I have to both agree and disagree to your opening statement. I can't believe this thread has been resurrected again and is still around after nearly 10 years! I checked back through before this post and counted somewhere between five and 10 that I had posted previously on the same thread.
Here is where I disagree with your statement:
I have now owned for 12 years what I consider one of a kind sport car. I have posted the specs on it previously but for those that don't want to read seven pages again, I have a 2005 Dodge Viper with a Hennessey conversion to the venom 650 hp motor. It also has the front end extended 9 1/2 inches using a Daytona racing front end which is only two and three-quarter inches off the ground . (it doesn't like speed bumps or dips in the road!) . It also has racing suspension with Asanti Rims and gigantic Pirelli tires. It has a larger tail for better airflow and a diffuser underneath to help keep it on the ground
This car is one of a kind and always draws the largest crowd when entered in a car show. I thought about selling it at one time, but not because I had tired of it. It was a stupid car for someone that was RVing around the country and Canada full-time! My wife and I did that for six years and sometimes she followed our big rig in the Viper and other times it sat in storage.
Here is where I agree with your statement:
Once I added a Paxton supercharger and increased horsepower to 771, and grew older, this car became more work than fun. I still love this car, but it is too fast. It also does not have a lot of the conveniences that the newer sports cars do have.
I went back out and looked at the Chevrolet Corvette Z06 a couple months ago. This is still a pretty fast car with 650 hp and 650 pounds of torque. It is much more comfortable to drive and the push button convertible top is much more easier than operating the convertible top on the Viper.
So, I feel I did add something more PRACTICAL...... I now have a new torch red Corvette with adrenaline red interior, and black rims and accents all over the car. It is a joy to drive but certainly not the one-of-a-kind car like the Viper. I still own both........
I also need to disagree with the hot girlfriend quote. I found my hot girlfriend when she was 18, and we just celebrated our 47th wedding anniversary! She has never been a *****.
three more little tidbits.
1. I don't owe a penny on any automobile and have always paid cash for any car I've owned.
2. I still have the same daily driver. I purchased in 2009, a Chrysler 300,, with a hemi motor.
3. I just sold a 152 unit building in Garland, Texas and literally made millions of dollars. I decided to give myself this present and every time I got in it, I would see something that I had earned from hard work and effort. Normally, the money just goes in to an account or into additional property. This was a small reminder of success that I look at regularly
My four car garage is now filled to the gills with four cars and two golf carts. I live in the villages, Florida, where golf carts are the main mode of transportation..... I love all my vehicles and they have always been free and clear.
What a pleasure to read your response! Isn't that the reason why most of us are here - lifestyle (and cars, of course)?
The sad thing is that we don't have the roads nor the drivers to enjoy our cars here the way the Europeans do. When I was still living in Austria I had a little BMW Z4 with a nice engine and rear wheel drive, not even half the HP of your cars, but enough for narrow roads. My daily commute was 20 minutes of winding mountain roads, down in the morning and up in the evening. What a joy every day after work to bolt up the hills and pass cars in the short distance between the switchbacks! I would always count cars passed and then drive against my own best lap. The Z4 was an excellent drifter and very easy to control on the throttle with great stiffness in the suspension. That was 10 years ago, today I live in Wisconsin and drove to the office in my Q5 TDI on a straight road doing 55 miles and hour. And if I would pass a car every day I would probably get shot by some angry person before the end of the year...
I might need a toy in the garage again though some day ;-)
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
9y
Originally posted by :
I had a little BMW Z4 with a nice engine and rear wheel drive, not even half the HP of your cars, but enough for narrow roads. My daily commute was 20 minutes of winding mountain roads, down in the morning and up in the evening. What a joy every day after work to bolt up the hills and pass cars in the short distance between the switchbacks! I would always count cars passed and then drive against my own best lap. The Z4 was an excellent drifter and very easy to control on the throttle with great stiffness in the suspension.
My wife had a Z4 when we met. Great car. A couple years later, we traded it in for two kids and an X5.
Still not sure if it was a good trade or not...both the kids and the X5 are much higher maintenance... ;-)
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
9y
@J Scott Ha, yes I am sure! And once you got used to the feel of a German car it's hard to switch to anything else, right? Can't wait for the the new X5!
Just like some of us, I have also posted on this forum multiple times. I am itching to get a sports car (Mclaren 570s). Perhaps one with a few thousand miles as it saves tens of thousands of the retail price. Pay for it in full & drive it around town for a little bit, keep the miles low but still enjoy it. When I get my thrill out of the new mclaren I can sell it. Sure I will lose $10-15k after putting some miles on it but I know everytime I get in the car it will remind me of why working hard is #1. I have been going back and forth and I have decided to hold off. I decided to pursue additional MF's and wait it out as long as my desire can...maybe wait till I hit my next goal and then get a reward :-) Happy Investing!!!
in 1974. I traded a 69 Corvette with the big block 465 hp motor for an Oldsmobile station wagon. I picked up my wife and our third baby ( under four years old) at the hospital! Four years later, I was able to purchase another 69 Corvette with the same motor and use it as a third car. Memories are what it is all about.
Just like some of us, I have also posted on this forum multiple times. I am itching to get a sports car (Mclaren 570s). Perhaps one with a few thousand miles as it saves tens of thousands of the retail price. Pay for it in full & drive it around town for a little bit, keep the miles low but still enjoy it. When I get my thrill out of the new mclaren I can sell it. Sure I will lose $10-15k after putting some miles on it but I know everytime I get in the car it will remind me of why working hard is #1. I have been going back and forth and I have decided to hold off. I decided to pursue additional MF's and wait it out as long as my desire can...maybe wait till I hit my next goal and then get a reward :-) Happy Investing!!!
It is nice to see the reward. I Sold a 911 Turbo early in my investing to buy units 8 and 9. Now that I am at unit 31 I bought a DB9 to enjoy a sports car again.
@Judd Campbell I like the way you work! Love the DB9. Do you drive it often? Do you like to keep the miles low? I have a friend who has a 2011 Ferrari 458 who DRIVES it and I just can't see myself putting a ton of miles on the car...
@Judd Campbell I like the way you work! Love the DB9. Do you drive it often? Do you like to keep the miles low? I have a friend who has a 2011 Ferrari 458 who DRIVES it and I just can't see myself putting a ton of miles on the car...
I bought it with 20k miles in Feb. just rolled over 23k. about 2-3 days a week I try to get it out. I am not keeping it nice for the next guy!
@Judd Campbell I think your doing it perfect! Nice video! The DB9 is an extremely tasteful high end machine. It's pure class. I truly believe more motivation comes from such things. I don't think we should work for materials but they are reassuring at times :-)
Small world! Would love to chat about your investing!
Rental Property Investor · West Bend, WI · Member since 2015 · 931 posts · 598 votes
9y
my opinion is, if you can pay cash for it (not off line of credit) then fine, but if you are leveraged 80% on everything including your house, its a poor choice, now if you have paid for assets with lines in place and a stock pile of cash, do what you want.
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
9y
How 'bout this ...
Set up a leasing company and an advertising company.
Get investors to fund the leasing company so it can acquire a Lambo Gallardo and lease it to the ad company. The ad company gets car wraps for your message and drives it as a rolling billboard.
Add fees pay the lease.
Lease income pays the upkeep on the car and repays the investors.
Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
9y
I looked at Ferraris. The problem for me is you can't put much mileage on them without destroying value. It is a nice dream, but I am too practical. Now, a second home in the TN mountains seems more practical and I could get some rental income. I have a lovely wife and children, so hot girls are not in the equation. I am smart enough to realize they might be more motivated by money than my looks:)
Real Estate Agent · Miami, FL · Member since 2016 · 11 posts · 2 votes
9y
I would buy some rentals first if the Lambo is your real goal but enough houses to pay for the lambos payment and have enough money left over to still net a good amount of money to reinvest. Don't be so short sighted stop looking for instant gratification
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y
The OP hasn't been around for 5 years.
Everyone has their preference. I like the thought of having a driver smarter and more alert than me at the wheel. I've put many 1000s of miles on vehicles in the last year, primarily looking at land. We're getting close to 500 developable acres spread across 9 counties. After a 10 hour day, with 150 miles to get to home, I like the thought of having the car take the wheel if I fall asleep. My trucks can't do that. Maybe I need a high dollar car like everyone else posts about.
The performance of the car is all about the car performing for me. I haven't bought a new vehicle for over a decade. I'm ready for the next one to drive me around rather than me driving it.
Inspector · Raleigh, NC · Member since 2017 · 55 posts · 25 votes
9y
I didn't go to school for business but i'm sure they taught you about opportunity costs, deprecating assets and insurance. It wouldn't be wise to start an investing career with an exuberant purchase. I have a good friend who owns a lambo... actually two. He never drives them and doesn't care to. They are merely a trophy of ones financial success. In your case I believe this would be a curse.
Now a days lambos are the cars of the young, rich and famous. Those who care to market themselves through the perception of riches. This is esp true for those who own only a few super cars.
A good friend told me best when we were discussing these types of cars:
I said wow look at that lambo! His response...
"Thats nice and all but that's not even a down payment on a jet" - 31 millionaire entrepreneur
I think your dreams are too small sir. Plan on buying 10 lambos and you will find your answer on how to get there. Good Luck.
Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
9y
Let's take the previous idea to another level ...
I've recently discovered that aspiring ride-share drivers find their own vehicles unable to pass the ride-share company's inspection. They are unable to afford a new(er), better car due to their financial situation.
Well, turns out, an entrepreneur has developed an approach to this which might lend itself to a variant where someone could form a company which gets funding to acquire new(er) and good-used cars for the explicit purpose of renting them to rideshare drivers. There's even a website out there to handle the "middle position" of tracking and insuring the rentals.
There is a similar company , but instead of buying the cars they rent out other people's cars so people can use them for rideshare apps. It's called Hyrecar
There is a similar company , but instead of buying the cars they rent out other people's cars so people can use them for rideshare apps. It's called Hyrecar
The idea would be to acquire new-ish (2004 and later) cars in good shape that meet the rideshare companys' requirements and rent them out to drivers who, for various reasons, cannot acquire a better car on their own. Rent them out through Hyrecar or a similar outlet. They already have the infrastructure. The owner(s) provide the car(s).
The delicate part seems to be finding a balance between the monthly rent and the average driver's income from rideshare. Hyrecar seems to be doing a fair business. The available cars listed on their website may be a bit steep in terms of the rent being asked. Others are probably being kept busy by asking a lower rent. Some of the testimonials suggest that the right balance will keep a car rented and producing income.