Should You Buy an Exotic Car?

Transcript

Exotic cars are fast, loud, and engineered to turn heads. There’s something about the sleek lines, the roar of the engine, and the prestige that makes them incredibly tempting. But should you actually buy one? Well, let me be direct, probably not.

The Reality: Want vs. Need

For most people, this is a want, not a need, and unless you check two very specific boxes, you’re better off keeping that dream exactly where it belongs, in your imagination. Let’s talk numbers. A $250,000 exotic car isn’t just about the sticker price.

The Hidden Costs of Exotic Car Ownership

There’s sales tax, there’s insurance that could rival a mortgage payment, annual maintenance costs that cost as much as a family vacation, and of course the depreciation that starts the second you drive it off the lot. Owning an exotic car isn’t just a purchase, it’s a financial commitment, one that comes with unexpected expenses, and more often than not, some form of regret. Now, I’m not saying no one should buy one.

Who Should Consider Buying an Exotic Car?

If you’re someone who meets these two criteria, you can make a case for it.

1. You are an automotive enthusiast – not just someone who wants to flex on social media. Someone who truly appreciates the engineering, the craftsmanship, the tradition, the experience.
   
   
2. You are financially set – meaning the cost of the car is less than 1% of your total net worth. That means that if you have a $25 million net worth, buying a $250,000 exotic car isn’t really going to move the needle much. It’s a luxury, but it’s an affordable one in that context.

How the Wealthy Buy Exotic Cars Differently

But even then, the way that the high net worth people buy cars is different than how most people do it. Here’s the difference. Wealthy individuals don’t just buy an exotic car on impulse.

• They treat it like an asset, not a toy.
• They tend to buy used. The first owner takes the biggest depreciation hit, so they let someone else pay for that.
• They tend to buy in cash. No monthly payments, no financing.
• They store them properly – air-conditioned garages, covered, barely driven.
• They build relationships with mechanics, suppliers, and specialists. If something goes wrong, they don’t just roll into the nearest dealership.
  They research market trends, looking at limited production lines and brands that hold their value because they’re thinking about potential future appreciation, not just the driving fun.

The Emotional Side of Car Buying

Money decisions are rarely just about the numbers. There’s emotion involved. If you’ve always dreamed of owning a Ferrari, it’s easy to convince yourself it’s a smart purchase.

Tell yourself it’s an investment or I deserve this after working so hard. Hey, I get it. But be honest with yourself.

Are you buying the car because it makes financial sense or because you want to feel a certain way? If it’s the second reason, understand that that feeling is likely temporary. The excitement fades, the bills, they do not.

A Smarter Alternative to Buying an Exotic Car

So what should you do if you really want to drive an exotic car? Here’s my advice. Don’t buy one right away. Instead, rent one for the weekend. Drive it, enjoy it, get the thrill out of your system.

And if after that you still feel like you must own one, take a step back and reassess. Because the reality is most people are better off putting that money to work elsewhere. Investing in assets that actually grow in value and don’t drain your finances, for instance.

Final Thoughts: Is an Exotic Car Worth It?

And if you play your cards right, maybe one day you’ll have the kind of wealth where buying an exotic car is really no big deal.

So should you buy an exotic car? Well, unless you’re wealthy enough for it to be an afterthought or you’re so passionate that you don’t care about the financial implications, then the answer is probably no.

But hey, if you do buy one, at least promise me this. Don’t finance it at 10% interest thinking it’s going to make you happy in the long term.

Thanks for watching.