How To Afford A Lambo?

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How To Afford A Lambo?

Tom Doan
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.

What do you guys think? Any help is appreciated.

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Will BarnardPro Member
Moderator
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.

Podcast Guest on Show #130
26Reply
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  • Josh Bryan
    Aurora, IL · Member since 2008 · 153 posts · 20 votes
    17y

    why? its a depreciating "asset". If you want to get into rentals, you don't need a $90k car at the beginning.

    10Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    17y

    You need to read "Total Money Makeover" by Dave Ramsey. You're setting yourself up for a lifetime of financial pain. Money first, lifestyle second. Get a million bucks in the bank, own your house free and clear, have no debt, then and only then think about buying that car for cash.

    Leasing a five year old car for a five year lease for $1500 a month (and, what's insurance) is, well, financially unwise.

    You do realize at the end of a lease you have to give the car back, right? "once the car payments are done", you have to go buy (or lease) another car. Save that $1500 a month for FOUR months then go buy a beater.

    18Reply
  • Will BarnardPro Member
    Moderator
    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.

    Podcast Guest on Show #130
    26Reply
  • James Young
    Real Estate Investor · Surprise, AZ · Member since 2009 · 25 posts · 1 vote
    17y

    I am also a relative newbie but it seems to me that it would be wiser to drive a reasonable car and get the most house you can afford to for the money.

    1Reply
  • Nick J.
    Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    17y

    Tom, I didn't really understand your post....

    are you saying you want the lambo 1st and then do real estate?

    obviously you can't expect anyone to condone that?

    build a cashflowing system and then use that to purchase what you desire

    1Reply
  • James Hiddle
    Altus, OK · Member since 2008 · 2k+ posts · 690 votes
    17y

    Call Trump and ask him for one for Christmas :mrgreen:

    0Reply
  • Tom Doan
    OP
    Austin, TX · Member since 2009 · 15 posts · 1 vote
    17y

    Man, talk about bashing.

    Haha, but I figured nobody would really agree with me.

    I just thought that as long as the 60 months of the car payments are bearable, I would be able to afford the car of my dreams and get started in real estate investing at the same time. Then after the 60 months, I would own the car and have a 100-150k house and could possibly lease that house out and buy another one.

    And to clear up my post, I want to own a Lambo, hence I would not be leasing one, but purchasing one.

    I know nobody seems to agree with my plan, but nobody is answering if it's even possible/realistic to do it or not.

    1Reply
  • James Hiddle
    Altus, OK · Member since 2008 · 2k+ posts · 690 votes
    17y

    I want a Lambo too and a Ferrari but that won't happen until I become a multi millionaire you wanting one is a nice dream but in reality unless you got the bucks for one it's not feasible unless you want one big headache.

    My advice get really really good in REI and maybe you can afford one down the road.

    2Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    17y

    $1500 a month for 60 months would be 90K without interest. You think someone is going to give you a $90K loan on a five year old car at 0% interest? I think not. At, say 10%, which is probably about right, your payments are $1912, plus insurance.

    And, you'll need another car to drive around. That "Lambo" is certainly not a daily driver.

    The P&I payment on a $150K house at 5.5% is $851. Plus taxes and insurance. Rest assured, though, NOBODY will give you a home loan if you have a $1900 car payment on your record. Unless you're making $250K a year.

    That's a foolish car to own, period. Buy it ONLY when the purchase price is pocket change for you. In the words of Austin Powers "I want a solid gold toilet but it's just not in the cards now, is it?"

    9Reply
  • Jason Trepins
    Real Estate Investor · Wyoming, MI · Member since 2008 · 195 posts · 10 votes
    17y

    and How much is insurance gunna cost?

    2Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    17y

    A little googling says its not as expensive as I would have expected. $2-3K per year. But the folks giving those numbers were older than Tom to be (just graduating business school), so might be a bit more.

    0Reply
  • Richard Warren
    Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes
    17y
    Originally posted by Tom Doan:
    Haha, but I figured nobody would really agree with me.


    Sometimes the best lessons are the ones you learn the hard way. You’re not going to listen to anyone anyway. You’re going to ignore the advice from people who know better and are trying to help you. So go buy that car. Mark Twain once said: â€A man who carries a cat by the tail learns something he can learn in no other way.â€

    :cool:

    10Reply
  • John Andre
    Real Estate Investor · Mission Viejo, Cape Coral, CA · Member since 2008 · 218 posts · 24 votes
    17y

    The Lambo was not designed to be an everyday driver. The maintenance alone per year will make this impossible. I have a friend that HAD one. Went in for a check up, oil, brakes, fluids, the topical $150 Jiffy Lube pit stop. When he got the call about the car needing new wipers blades, he asked how much. They were $75, each. Because they were [i] He told the shop to just replace the drivers side, picked up the car and took it to the Mercedes dealer. Traded it in an a SL55. That last pit stop cost him $7800

    0Reply
  • Derek W.
    Investor · Kern county Riverside County, CA · Member since 2008 · 494 posts · 261 votes
    17y

    I don't think you are getting "bashed" I think you are being gently nutured by your elders. Our elders ae so annoying when they tell us practical advice from their life experience that gets in the way of our vision and wants. But what is worse is years later when you have to admitt they "told you so." Seriously, read the Dave Ramsey book. That was great advice.

    5Reply
  • Gregg S
    Real Estate Investor · Greenville, SC · Member since 2009 · 2 posts · 0 votes
    17y

    Don't forget maintenance. I've read oil changes run $400+ and 15K mile service run $4K.

    This type of vehicle need to be brought to someone who knows how to actually work on them, which you're not going to find at Jiffy Lube.

    0Reply
  • Tom Doan
    OP
    Austin, TX · Member since 2009 · 15 posts · 1 vote
    17y

    I'm not looking to ignore any advice on here, otherwise I wouldn't have posted.

    I know it's reasonable to wait until you can actually afford one, but owning a Lambo later in life wouldn't be nearly as having one in your youth.

    Thanks Jon, that was the post I was looking for.

    0Reply
  • Harrison Painter
    Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y

    I had a long talk with my father back on my 30th B-day.....

    It was about finally understanding what the hell he had been telling me all of those years, the stuff i never listened to! :lol:

    I have come to realize that I actually get a little dumber every year.........At 18 I thought I new it all, and every year that passes, I realize more and more of the things I don't know! LOL

    The moral to the story, sometimes dumber is smarter! :mrgreen:

    My advice is to buy decent used car, most successful people will give 2 craps about what you drive, they will only care if you are someone who will hustle and MAKE BUSINESS HAPPEN!

    Take all of that money you are thinking about spending and invest it in real estate....

    If you do that, you might be paying cash for your dream car in the future!

    1Reply
  • Jason Trepins
    Real Estate Investor · Wyoming, MI · Member since 2008 · 195 posts · 10 votes
    17y

    I'd LOVE a lambo too..but can u IMAGINE driving it on Michigan roads

    EEESH, it'd be destroyed

    0Reply
  • Terry Kubiak
    Real Estate Investor · Vancouver, WA · Member since 2009 · 47 posts · 0 votes
    17y

    Tom, I think you will get what you desire.... you look like you should be driving a lambo.

    0Reply
  • Robert Coomer
    Real Estate Consultant · Memphis, TN · Member since 2008 · 23 posts · 4 votes
    17y

    Here's a slightly alternative view... Being around your age, I know exactly where you are coming from. Whats the difference in driving a lambo at 21 or 22 and driving a lambo at 28? I assure its not that much. Use your desire to get the lambo as motivation to be a responsible saver and invest wisely. Real estate is all about knowledge and the more knowledge you have creates an exponential effect on your income. Simply put, learn all you can about real estate (if thats what you want to do) and use your desire to buy a lambo as motivation for success. When you are financially stable enough to put down enough cash so that the amount you owe is equivalent to an "average" car loan ($20K-$30K) then go for it.

    1Reply
  • Adrian Pillow
    General Contractor · Warrenton, VA · Member since 2008 · 72 posts · 10 votes
    17y

    Great business school you are going to if you really think a Lambo out of the gate is a wise move.

    Lets be real, what job do you have lined up out of college? Pay? Benies?

    I suggest going on to Grad school. Undergrads in Business are a dime a dozen. Market yourself a little higher and study finance to understand real estate in and outs.

    Here is my story. I have a BS from USC with a double major in MIS and Marketing. I worked in IT for 8 years before changing career paths. My reward to myself when I was 26 was a used Porsche 911SC, which I paid cash for. After owning a home!

    ... I still have it, never use it, garage queen. Waste of money. What I drive everyday is a 96 GMC Sierra K3500 crewcab with an 8' bed, which I paid cash for. Because I look the part. My wife drives an Escalade. I never drive it because it does not fit my style.

    Keep it real.

    When you bank the first Million buy whatever you want. Read The Millionaire Next Door to understand.

    9Reply
  • Timothy W.
    Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes
    17y

    Why not just rent one when you want to drive one? You don't have to always own luxury to enjoy it.

    4Reply
  • Harrison Painter
    Indianapolis, IN · Member since 2008 · 759 posts · 185 votes
    17y
    Adrian Pillow said:
    When you bank the first Million buy whatever you want. Read The Millionaire Next Door to understand.

    Tom,

    Adrian just nailed it!

    This is the best sentence on this entire thread for you to listen too!

    0Reply
  • Jeffrey K.
    Real Estate Investor · Milwaukee, WI · Member since 2008 · 1k+ posts · 671 votes
    17y

    I might have missed something, but this kid is getting an MBA! I guess I am glad I never went back to school.

    0Reply
  • Tom Doan
    OP
    Austin, TX · Member since 2009 · 15 posts · 1 vote
    17y
    Originally posted by Adrian Pillow:
    Great business school you are going to if you really think a Lambo out of the gate is a wise move.

    Lets be real, what job do you have lined up out of college? Pay? Benies?

    I suggest going on to Grad school. Undergrads in Business are a dime a dozen. Market yourself a little higher and study finance to understand real estate in and outs.

    Here is my story. I have a BS from USC with a double major in MIS and Marketing. I worked in IT for 8 years before changing career paths. My reward to myself when I was 26 was a used Porsche 911SC, which I paid cash for. After owning a home!

    ... I still have it, never use it, garage queen. Waste of money. What I drive everyday is a 96 GMC Sierra K3500 crewcab with an 8' bed, which I paid cash for. Because I look the part. My wife drives an Escalade. I never drive it because it does not fit my style.

    Keep it real.

    When you bank the first Million buy whatever you want. Read The Millionaire Next Door to understand.



    I never said it would be a wise move, I was merely speculating a possible move, not necessarily a wise one.

    Business undergrads may be a dime a dozen, but good ones not so much. An undergrad at a top 10 business school in McCombs is pretty prestigious in itself. But if it's not enough then I might go back for my MBA.

    And thanks, I'll check out that book.

    0Reply
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