When can you Afford to Buy an Exotic Car?

Lamborghini Countach 1989 anniversary from Cats Exoticcs

16 Apr When can you Afford to Buy an Exotic Car?

exotic car lamborghiniThis site is all about exotic cars and how people were able to buy those cars. However, many people get themselves into big financial problems by not being smart with their money. Just because a lender or bank says you can qualify for a car payment or even a house payment does not mean you can afford it. Most people who can truly afford exotic cars, nice houses and other luxuries have worked their butts off and made many sacrifices to get that point. I did not have a car payment until I was almost 30. I drove a 1991 Ford Mustang 5.0 convertible for almost 10 years as my daily driver. I put a supercharger on it and a few other modifications and love that car (I still own it), but it was not a $40,000 purchase with monthly payments.

Affording an exotic car is not just about income

Many people consider wealth to be about how much money you make every year. But you can make one million dollars a year and have nothing to show for it if you spend it all on crap. Don’t feel bad if you have a hard time saving because most of America and the world does as well. 75 percent of Americans have no savings! That is a scary figure to me and I hope it is scary to you as well. If it is not scary to you, it probably means you are one of those 75 percent and you think it is normal to have no savings. To get ahead in life you have to be able to save money and then invest that money so that it grows for you. It is a beautiful thing when you have a great income coming in and a great investment portfolio producing passive income as well. Passive income is what really provides security, not income.

Why is passive income so important to having wealth?

Having a huge income is awesome, it makes everything easier in life. However, a huge income in itself does not make you wealthy. We all tend to spend more as we make more, which makes it harder to save and harder to invest. If you make a million dollars and spend it on things that have no value, did that million dollars do you any good? Sure you may have had some fun, but in the bottom of your gut you probably feel sick thinking about how much money you made without having much to show for it.

Passive income is when you invest money in businesses, real estate, stocks or something else that provides a steady income. It is pretty difficult to create a truly passive income, because that would mean it requires no work from you at all. There are different levels of passivity that require varying amount of involvement from you. The point of passive income is you do not have to work all the time to create income. Your investments will create income for you with minimal involvement. Rental properties are a great form of passive income for me, I made over $60,000 in income from my rentals in 2014 with very little work and I am still in the beginning of my investment career.

I also started a real estate investing blog which creates passive income as well. The blog takes a lot of work and I write articles all the time for it. But, if I were to stop writing and working on it, it would continue to produce income. There are many ways to produce passive income and passive income is what makes you wealthy. If you could not work tomorrow, would you still have income coming in? Passive income also is an incredible way to retire early if you are not depending on the stock market. The right passive income keeps coming in every month, while investing in the stock market is based on you eating into your investment principle and eventually running out of money.

Here is a cool site that shows you how to start an exotic car business.

How do you know when you can afford an exotic?

I am finally getting back to the entire point of this article. How do you know when you make enough to afford an exotic car. Well there are many factors you have to consider.

  • How old are you? How old you are, if you have a family and what your responsibilities are all play a role in what you can afford. I have twins who are almost four and I wanted to be sure I was not sacrificing their future for my pleasure when buying a car. Your first responsibility is taking care of your family.
  • How much money are you saving right now? Are you saving money to invest or spending every dime you bring in? If you can’t save any money now, then buying an exotic car will not help the cause any.
  • How much passive income do you have? I made myself a deal when I started buying rental properties. After every three properties I bought, I would buy a new cool car. However, the last cool car I had bought before I bought rentals was a Porsche 928 that cost $6,000. I bought three rentals and I got addicted to buying houses. Then I got the big goal of buying a Lamborghini. Buying a $6,000 car versus buying a $126,000 car is a little different. I waited until I had ten rental properties that produced $5,000 of income a month. Does your passive income cover your exotic car expenses? Depending on your situation passive income may also need to cover your living expenses as well as the car.
  • What kind of car do you want to buy? A lot of what you can afford will depend on the car. What are the maintenance costs, the acquisition costs, the possible appreciation or depreciation? I bought my Lamborghini when it was 15 years old and in my mind had hit the bottom of the depreciation cycle. If you buy a brand new exotic expect it to drop in value, a lot. There s no guarantee old exotics will increase in value either.

Here is a great site that I use to help me find good deals on exotics, as well as financing and other help: Exotic Car Hacks.

What if a bank or lender says you can afford an exotic car?

The first thing to remember when dealing with banks or lenders is they are not looking out for your best interests. This is not something unique to banks, most people will care more about themselves than you and that is not a bad thing. Banks want to make money and lend money to consumers. If you have the ability to repay a loan they will most likely try to lend you money. The bank is not worried about how much money you will be able to save after you get the loan or how much passive income you can produce. They want to know that you will pay them the interest you are obligated to pay them.

If a bank says you can qualify for a loan, that does not mean you can afford it. And by afford I don’t mean living pay check to pay check cruising in your Ferrari. Afford means you have the passive income and savings to survive if everything around you falls apart and you don’t have a massive income anymore.


There are no set guidelines for how much money you should make before you buy an exotic car. A lot will depend on the car and your personal situation. Don’t let the bank tell you what you can afford, don’t let your friends or coworkers tell you. Base your decisions on what you feel is safe for your particular life, income, savings and family.


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