If there's one thing I share in common with many men, it's a fascination for cars! It's truly is a religious experience. I think of every car as a beautiful female. Each car comes in all shapes and sizes. It really is a love affair! Cars, besides women, are the only thing that guys would easily and stupidly dump $50,000 on without breaking a sweat. How ridiculous is that?
It's not just men who go crazy and stupid over materialistic things. There are women out there that have $5,000 worth of shoes. Not to mention their purses that totals about $20,000, and $10,000 worth of clothes in the closet. It's not so bad though, when considering guys desire cars in the $30,000-$50,000 range on average. Why do we forget all our personal finance wisdom when it comes to our weakness, I have no idea. But I figure it's best to accept it, and just budget our finances for it.
Believe it or not, one can own a Lamborghini without being a multi-millionaire. Yes, it's 100% possible even if you aren't wealthy yet. And no, I'm not joking! Is it foolish to drive an exotic car before you're financially independent? Most likely. But this guide will help millionaires, and aspiring millionaires, to drive a Lamborghini Gallardo for "free". The Gallardo has recently been replaced by the Huracan. But the Gallardo is synonymous to Lamborghini as the best built and most reliable of the past decade.
While the Huracan is the new face for Lamborghini, it's also highly unaffordable for a person who's not financially independent or wealthy yet. And most millionaires typically don't buy an exotic car in the first place. Unless they break into the $5-$10 million net worth range first. First, let's break down how to buy a Lamborghini Gallardo regardless if you're financially independent or aspiring to be financially free. And finally, let's go into specifics on how to buy a Lamborghini Gallardo for "free".
What TO Look For In A Lamborghini Gallardo
The things about cars is that they depreciate and lose value once it's driven off a dealership. They are liabilities, and they don't help you become financially independent or increase your net worth. But we can use that to our advantage! Pricing on earlier and mid-year Lamborghini Gallardo have plummeted drastically. That allows anyone to own a Gallardo granted they are financially responsible.
What to look for before buying a Lamborghini Gallardo:
Think Financing Instead Of Paying Cash For An Exotic Car
Millionaires always think about opportunity cost before purchasing. They are always weighing the cost of spending a lump sum versus investing it to enrich their financial picture. Cars depreciate over time, and loses value drastically. Cars are never in a millionaire's asset column. The rich buy assets and rent liabilities! It makes much more sense to make monthly car payments on the Lamborghini, and invest the $100,000 into something that can spit out passive income, and potentially grow one's net worth.
Since the Gallardo is already over 5 years old, it has lost most of the time depreciation it can get. It doesn't make sense to pay a lump sum for a car, when you can use the lump sum to invest instead. The older Gallardo will depreciate mainly only through car condition and mileage. Since a Gallardo is being purchased with 15,000 miles or less, there's many places that will finance it for 84 months (7 years).
A Lamborghini Gallardo can be financed for $100,000 with $0 down (zero down), and 84 months (7 years) financing. No cash out of your pocket, and the Gallardo can be had for $1,400 a month!
How I Will Buy A Lamborghini For Free (Almost!)
I tend to be very frugal with money. Put in a different way, I tend to make money, and then worry about losing it all. At least I used to, until I utilized a strategy for investing my money, and allowing myself to feel good about spending the money that I made. The strategy is called "Assets Buy Liabilities (ABL)". I didn't create this strategy. It's been inspired by Robert Kiyosaki, author of 'Rich Dad Poor Dad', who said that the 'rich invest in assets to pay for their liabilities'. Kiyosaki has been known to advocate "expand your means, not live below your means". Put simply, if you want a liability (a nice car, a nice home, a boat, etc.), first find an asset to invest in, and then let the asset pay for the liability you desire.
How does the "Assets Buy Liabilities (ABL)" strategy work?
How Does The Numbers Work?
Rather than paying for the car out of pocket, simply put the $100,000 into a basket of investments that will yield 15% per year or more. Investments are ones that provide cash flow. One should only buy investments for cash flow. Whether the value of the investment goes up or stays the same, it doesn't matter. What matters only for investing is cash flow. If the value goes up, you get to win twice!
The passive income from the investments will be about $15,000-$20,000 per year, which easily pays for the payments of the Gallardo. There's also a chance that the value of the investment may appreciate as well. After 7 years of payments, you get to keep the car, your investments, and your passive income streams.
Why is the Lamborghini "Almost" For Free?
While I truly advocate Robert Kiyosaki's philosophy, such as 'rich people buy assets to pay for their liabilities', he's been too commercial for me lately. Nonetheless, I must thank him for teaching me that I can buy whatever my heart desires, as long as I find the investments first to pay for it.
So I started the article saying how I will buy a Lamborghini Gallardo for free, but with a *wink* and added "Almost".
When it came time to actually buy one, I've grown accustom to leasing brand new cars. I couldn't imagine myself in a used car anymore. Besides, have I not mention how frugal I am? Don't feel bad about my first world problems!
I ended up using the passive income coming out of my Lamborghini Gallardo's fund to invest into 2 producing oil fields in Texas. The 2 oil fields is spread across around 20,000 acres, with about 300 producing oil wells. Each oil well will pumps out oil which can be sold for monthly passive cash flow income. There's also potential drilling in both oil fields totaling over 400 additional wells that can produce oil the in future!
I tend to set my sights on toys as a motivating carrot stick to build my financial picture. I hope it works for you as a motivating factor to make money, save money, and invest!
Below are pictures of the two oil fields I just recently invested in: