Purchasing an exotic car can be an entrepreneurs dream – but is it worth it? In this post, I reveal the real cost of buying a Lamborghini.
Watch the video below:
For some, buying a Lamborghini is like finally beating Kazuya in the last level of Tekken 7.
After years of hustle, big purchases like a luxury car can make it feel a lot worthwhile. One of your most precious assets that seamlessly boasts “I’m RICH” – so you don’t have to.
Okay, maybe that’s just me.
On the other hand, buying one might sound like a far fetched dream. Something that only the “elite” get to enjoy, and to be rewarded with one – you need to be some kinda person.
Regardless of how you see it, I’m sure we’re all curious about how ‘normal’ people can get their hands on one.
I’m going to show you how.
To start, let’s look at the maths of buying one – and the two methods you can use to purchase one.
How to buy a Lamborghini
There are really only two methods to buying a Lamborghini:
- Buy it up-front
Let’s look at what each method covers and their opportunity costs to see which method is best for you.
Method #1: Buy a Lamborghini
So to own one, you’ll need to pay this amount in full.
Let’s be honest though: not everybody has $200,000 lying around in the bank. And even if you do, it’s likely the majority of that money isn’t just for one car. There’s possibly a house, marriage, children etc. in the big picture that you’ve been saving for.
And from the investment side, cars are depreciating assets – so will only drop in value as the years go buy. This makes it trickier to decide if buying one is worth it, especially considering there’s better ways to invest your hard earned money. Like purchasing rental property and earning a 10% return each year.
Depreciating car? Or 10% return each year? Come on, I know which choice most people would make when push comes to shove.
For most people, buying a depreciating vehicle may give you a rush at first, but soon you’ll realise that money could’ve been invested more wisely, to make them MORE money.
That’s why I recommend if you want to buy Lambo, you choose the more slicker route: Finance.
Method #2: Finance
Many of my friends who run successful eCommerce businesses buy their exotic cars through finance.
It’s funny though. Every now and then, they get comments like “Since you purchased your car through finance, you must not be making as much money as you claim to be!” – when ironically, it’s the complete opposite. This is exactly how people purchase exotic cars.
Let’s see how the finance method works using imaginary Philip.
Philip takes $200,000 in cash and sets aside a down payment of 20% ($40,000) for the car. After this, he secures a low 2% interest loan on the remaining amount ($160,000) from the bank to pay off the car. With the other $160,000 he has in cash, he uses this money to invest in appreciating assets – like property. So the proceeds of that asset can even help to pay off his car. Sort of like having your cake and eating it.
As you can see, the smarter way is to put down a minimum deposit, so you have room to invest other cash into an appreciable assets which help to to pay off the rest of your car.
Could this work for you? Maybe.
Maybe you could get a good job and raise $40,000 in two years – AWESOME!
Or Maybe you’ve already saved $40,000 – TERRIFIC!
But here’s where it gets a little tricky. Banks only loan you as much as you make in a year, so to get an auto loan of $160,000 – you need to earn $160,000.
Very few jobs pay this much. And the ones that do, require years of training and experience – plus a HUGE student loan.
And that’s only if you’re based in the USA. If you live elsewhere (like I do in New Zealand), it’s even harder to secure an auto loan and you’re going to require even more money.
Quite frankly, this is a classic example of how the “rich get richer.” People who earn less have to waste more of their savings on their deposit into a luxury car, losing out on extra money to invest it into appreciable assets.
Meanwhile, those who earn more get to invest LESS, and widen their income gap further by getting to invest more of their leftover money into other assets.
So yes, while you can save up to buy a Lamborghini with a job, most people wouldn’t spend their money that way.
This leaves you with two options. The first is to take on a huge student loan to become a Radiologist and earn a six-figure salary (Which BTW, will land in more student loan debt than you already have). I don’t know about you, but I don’t want to spend another 4 years in university to get a degree for a job that I don’t even like just to get a Lamborghini.
That’s why I LOVE this second option.
Start your own business
I have friends from all walks of life. And the truth is, the only ones I know who get to enjoy the life of fancy exotic cars – are entrepreneurs and business owners.
With jobs, there’s always an earning cap: you exchange your time for money. And with only so many hours in a day you can work, once you’ve given all of them that’s it. You’re out of hours to work!
This is totally different to business.
In business, instead of exchanging your time for money, you do the total opposite. You make money through buying other OTHER people’s time – and use THAT to earn passive income.
If you’re subscribed to WT, you’ll know one business we teach subscribers on our channel is Dropshipping.
Dropshipping is when you open an online store, but you don’t need to purchase any items in advance – as you only pay for the item after the customer purchases.
Instead of the conventional method of buying stock in advance, you purchase each item individually from a manufacturer who is willing to ship it to your customer for you. Your job is to list the item at a markup price on your website, then when you’ve purchased it from the manufacturer, you keep the difference as profit.
To get it up and running at the start, you’ll obviously have to give up some of your free time to set up the store and get it running. And it may take a while till you see your first sale, knowing there’s a learning curve involved.
Oh, and yes – you will have to start your business with your own money.
So you know what? Most people would rather spend their evenings doing something else like watching Netflix or scrolling through social media. So, they either give up halfway – or never even start.
But then there’s people like Reynard. Who doesn’t give up, who willingly spends his time and money and doesn’t stop till he’s built a successful Dropshipping store. And its people like Reynard that will one day have the money to buy their own Lamborghini.
How? Let’s say Reynard spends 1-2 hours each day growing his store until it’s making $5,000 a month. He can then go and take $1,500 of that money and hire someone to run the store for him each month instead.
Now he’s making $3,500 a month – passively. This means he can sleep, go out to lunch with a friend, or head to the gym at 1pm on a random Wednesday – yet customers will still come in and buy from his store.
But Reynard doesn’t stop there.
Now he’s outsourced the running of his store to an employee – he’s earned back his time.Time he’ll now use to build ANOTHER store.
Oh, and faster this time as there’s no learning curve and he can just follow the formula he used first. Which in half the time he built the first store, he now builds a second – to $5,000 a month.
What do you think he does next?
You probably guessed it right. He builds another store, recruits another employee and does this again, again … and again.
Reynard’s escaped the trap of spending his time to make money, by using this new “equation”:
Money x employee = more money (passive income)
The truth is: A job isn’t going to get you a Lamborghini. Instead, invest your free time wisely to grow and start a business that can turn into a passive income source. So, one day you’ll be able to get your very own Lamborghini.
To do this, I want to help you with your very first step.
Six steps to building a six-figure Dropship store
In this free book, I’ve included:
- How just one “winning item” can earn $10k/month. Yep. A lot of people don’t realize this… but most stores make the majority of their money from just a handful of items!
- The right way to choose Aliexpress suppliers. Picking the right Aliexpress Dropshippers is crucial to drastically reduce things like refunds. Learn how to pick the right suppliers.
- Why long shipping times DON’T matter. A lot of people are scared to start dropshipping because of “long” shipping times. You’ll learn why this doesn’t matter inside.
- Why their stores take 2 hours a day to manage. You’ll learn how they utilize apps like Oberlo to make their stores semi-automated… making managing orders super simple!