Lots of people are quick to assume that they’ll never be able to own a fancy sports car. Owning a car like a Ferrari or Lamborghini is reserved for celebrities or the super-wealthy. It’s not something that the average, ordinary person can achieve. Or is it?
Owning a fancy car doesn’t necessarily have to break the bank. In fact, it’s actually very achievable as long as you’re able to be a little bit creative. In this article, we’ll go over a simple method that you can use to buy your own sports car and not go bankrupt.
How most people make big purchases
The first thing that’s important to note is that most people do not make big purchases with cash. It’s incredibly rare for someone to buy something like a house or sports car with cash. So if you’re waiting until you have $275,000 sitting in your bank account to buy a sports car, we’re here to tell you that you can own one for much less.
Instead of making a big purchase with cash, the process usually looks like this:
• The buyer makes a down payment on the purchase.
• The buyer finds a bank or lender to pay for the rest of the purchase.
• The buyer then repays the lender (usually in monthly installments) over a period of time.
This type of process is very common for things like buying a house, going to college, or buying a new car. As the buyer, you only need to have a fraction of the payment available in cash for a down payment. Then you’re just responsible for repaying the loan.
While this method is easier than paying $275,000 upfront, it still doesn’t mean that owning a Lamborghini is cheap. First, you’ll still need to come up with the money for a down payment and even then it can cost you thousands of dollars each month.
A quick example from Cars.com said that Lamborghini just announced new financing incentives for their Lamborghini Hurcan 2dr all wheel drive coupe (starting price of $264,000). The financing includes 5.9% for a 5-year term depending on your credit score. This would calculate to approximately $3,960 monthly payment after the required 10% down payment to drive it off the lot.
So to own a brand new Lamborghini, you need:
• About $30,000 in cash for the down payment
• To pay $3,960 per month until the car is paid off.
*These numbers will fluctuate based on make/model and factors like your credit score.
This is more feasible than paying $354,000 but still seems a little out of reach.
Let’s take a look at one more trick…
Turn the car into an asset, not a liability
The next step in owning a Lamborghini is to turn it from a liability into an asset. This means that you’ll use the sportscar to actually bring in money each month, instead of just costing you money. This can be done by renting it out, just like a landlord would do with an apartment or a house. Believe it or not, lots of people actually love to rent expensive sports cars when they’re traveling or on vacation. This is especially true for travel destinations.
• You buy an expensive Lamborghini
• You rent it out for a few days out of the month.
• This income helps cover the cost of the monthly payments, essentially allowing you to own it for free (or significantly cheaper).
So where can you go to rent out your new Lamborghini?
Introducing: mph club
mph club is an exotic car rental service located in Miami, Florida who offers a management program where you can lend your exotic car to mph club when you’re not using it and they will rent it out on your behalf. The process works like this:
• You lend your car to mph club.
• mph club holds it for you and rents it out to their customers.
• You and mph club split the profit.
Remember the math from before that’s required to own a Lamborghini? First, you would need to come up with a down payment of about $30,000 which would require some saving. Then, after you’ve purchased the car, you’re responsible for a monthly payment of about $3,960 per month.
One thing that you might not know, however, is that Lamborghini’s rent for about $1,495 per day through mph club’s service. This means that you’d only need your car to rent out for 6 days during the month to cover the cost of owning it including mph club’s share. On the 7th day, you’d actually be making money.
NOTE: You and mph club would split the profits, which is why it’d take 6 days to reach $3,960.
Even if your Lamborghini doesn’t rent out 6 times every month, just renting out a few times will significantly reduce your cost of ownership and save you thousands of dollars.
Does this mean that owning a Lamborghini is easy? Of course not, it will still take diligent saving to reach the initial $30,000 down payment and then discipline to try and rent it out as many days as you can. However, using mph club, it’s very feasible to own a Lamborghini and not go bankrupt.
We hope that you’ve found this article valuable when it comes to understanding how you can buy a Lamborghini and not go bankrupt!