Have you ever been cruising down the road and seen an exotic sports car pass you? You know the type. The kind that 007 might drive. Have you ever thought what salary do you need to own a Lamborghini so you could put yourself behind the wheel?
Whether or not you want all of Q’s modifications, there are lots of folks who are really into cars. And not just cars or muscle cars but Super Cars, the cars that dreams are made of.
This post is based on a popular thread about this very topic, so we wanted to weigh in.
It’s probably fairly obvious that from a financial perspective, an exotic car doesn’t make much sense. It just doesn’t. If you have to ask how much it costs to buy or how much it costs for gas and maintenance, you probably can’t afford it. Period. But let’s ignore that for now and get down to the fun stuff: the numbers. Let’s find out where you stack up financially if you ever did want to go off the deep end during your mid-life crisis.
What does a Lamborghini cost?
Let’s pick out which Lamborghini to focus on. There are two new models to choose from:
- Lamborghini Huracán: $199,800 – $262,350
- Lamborghini Aventador: $399,500 – $530,075
Let’s go with the cheaper one.
For a trim package, let’s go with the mid-tier package: the LP 619-4 AWD. It comes in at $237,250.
Of course, you can always lease the car for $2,950/month and $11,500 down. The lease is 36 months at 2,500 miles a year. But for simplicity’s sake, let’s not go through the whole lease versus buy analysis. Let’s assume you want to buy this car and make it yours.
Oh yeah, maintenance
In addition to the purchase price, there are a lot of other costs to maintain a car like this.The Huracán does come with a 3-year unlimited mileage power train warranty. Oil changes are about $400 and tires are $1,500 for all four. Based on the Lamborghini online forum, it’s recommended that you have a rainy-day maintenance fund for unexpected car expenses. Owners suggest $15,000. This isn’t even accounting for gas, wipers and auto insurance. (Then again you’d probably not be driving this beauty in the rain).
All in, we’re at approximately $240,000 for a new Lamborghini.
What Salary Do You Need to Own a Lamborghini?
Which brings us to the question of the day: How much salary do you need to buy one?
It’s recommended that you buy a vehicle that costs less than half of your annual salary. So if you’re making $50,000 a year, you buy a car that’s less than $25,000.
However, since cars are a depreciating asset, the less you pay for a car, the better. But based on the less-than-half-your-salary rule, to buy a Lamborghini (without all the bells and whistles) you need to be making…
Wait for it…
$480,000 a year.
You can buy a Lamborghini earning less of course. Would it be smart financially? No. Would it be fun? Absolutely! But keep in mind, this isn’t a wise purchase even if you are making $480K.
What to spend your money on
Your first financial priorities should be:
- Paying off debt: credit cards, loans, etc.
- Fully funding your retirement: 401(k), SEP, etc.
- Funding your children’s educational costs
- Paying off your mortgage
If you’ve done all of these, consider making investments that can turn into potential profit: real estate, rental property, peer-to-peer lending, a business, etc. That way your money can make money. Not just depreciate as it drives down the highway.
And the best investment? Time with your family making memories that will last longer than any car.
It’s a beautiful car. It is. But before you pull the trigger on any big-ticket item, think about your long-term goals. By having a financial strategy, you can help avoid the fate that some folks fall into. Remember, in the end it’s not what you make that matters, it’s what you keep. And the best way to do that is to have a plan in place.
If you’re looking for help regarding your personal financial plan, then give us a call at 617-398-7494.