3 Luxury Car Purchases Self-Made Millionaires Wish They’d Skipped
Whether you've already struck it rich or hope to, how you spend your money matters. For many who finally hit it big, the first thought is to treat themselves to the car of their dreams. However, these choices could become a nightmare when made to hastily.
We spoke with several self-made millionaires who found out that a flashy new set of wheels can end up being more hassle than it's worth. Of course, from lemons come lemonade and now you can learn from their mistakes.
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1. The Money Pit SUV
Brian Preston, CFP and host of "The Money Guy Show," knows all too well the pitfalls of splurging on an ultra-premium ride. He shelled out a large amount of money for a European luxury SUV for his wife -- and instantly regretted it.
"It's not just the purchase price that's more expensive," Preston said. "It's the hidden costs like insurance, the premium fuel, the ongoing maintenance and the high-performance tires that need replacing constantly. Plus, those huge rims that look so cool get scuffed up if you even look at them the wrong way."
His advice? Don't even think about financing a luxury vehicle.
"It's exactly what the name implies -- a luxury. I don't recommend financing luxuries. If you do, you better be able to pay it off with cash in one year."
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2. The Lamborghini Letdown
Amelia K., a self-made tech entrepreneur, learned a similar lesson after purchasing a $270,000 Lamborghini Huracan. At first, she loved the sleek speed -- plus, she liked driving a car she thought was "typically something you'd see a guy in."
"But after a few months, the novelty wore off and I was left with this pretty impractical car that I kind of hated," Amelia said. "Plus, the upkeep! It's hard to watch all that money just disappear each month."
Not only was the Lambo a massive drain financially, but Amelia also found herself constantly stressed about it getting damaged or scratched. If she could do it all over, she said she'd opt for a more practical high-end car like a BMW or Mercedes.
3. The Porsche 911 DOA
For real estate investor Jay L., his dream car came in the form of a $129,000 Porsche 911 Carrera. He regretted spending so much so quickly on something that depreciates significantly the second you drive it off the lot.
"I grew up on used cars, so I thought this was my chance to finally go big," Jay said. "But I almost immediately regretted putting out that much cash on a car."
Jay ended up trading the car in for a more practical used version -- one with space to fit a family, too.
"I want kids one day and I feel like my new electric SUV sends out that message," he laughed.
Final Take: Think Twice Before Going Luxury
The bottom line is that while you've earned the right to indulge a little after becoming wildly successful, ultra-luxury cars often end up being more trouble than they're worth between the crushing ownership costs and impracticality.
As Brian Preston summed it up, "You are free to enjoy what you have saved financially and purchase a luxury car, but personally I didn't feel as though it was worth the associated costs."
For those set on treating themselves, going with a more affordable and practical premium vehicle like an Audi, Lexus, Acura or Genesis is likely the smarter financial move. That way, you can still enjoy the luxury experience without all the regret.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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