Gallardo purchase at what income level?

I realize this will not be a right or wrong answer but more of an opinion type question, which I value from this site. I'm looing into purchasing a Gallardo soon and just want a general idea of what income level most of you would feel comfortable doing so. It would most likely be a 04/05 in the under 100k price range. I am single, no children, own my own home and my total bills every month are around 38% of my NET income.

 

 

 

Jonathan

Someone I know recently had a catastrophic failure of their Gallardo to the tune of 50k out of pocket (if he went through Lamborghini for replacement of his engine). If that wouldn't decimate you then you are ready. Most Gallardo's I've heard have small issues here and there, but some have had egear parts go out to the tune of 10-20k etc.

 

That's beyond ownership costs which most people that can afford the buy in can afford the upkeep, but buying a used exotic car is always a risk. This advice is coming from the owner of a used exotic car. Mine looks and runs great, but I always keep in mind that if I have a catastrophic failure it's going to take a chunk out of the pocketbook.

ANY LEVEL!!

 

who needs a house when you can sleep in a lambo?!?!?!?!?

 

although i've heard it helps to become a drug dealing, pimp, that does porn

whats your risk tolerance?

You will get different answers from different people. Although, I am almost certain that most will say "if you have to ask, you can't afford it". Like you, I asked these questions before and I can comfortably afford it, so I don't agree with that above quote.

 

There is not one answer to your question because everyone has different financial earnings / obligations / priorities. It will all come down to your overall financial status. How much do you earn, how much do you have saved up, what's your income to debt ratio now, what will it be after the purchase of the car, how secure is your job, and lastly, how much of your net income are you willing to spend to have an exotic.

 

Once you have answered all these questions, you will have the answer by your own.

 

Good luck.

Only YOU can answer that question.

All very useful advice , any unexpected repairs over 15k would start to worry me . I've researched on this site the normal operating costs and can afford them without issue. As far as debt , the only thing I owe on is my home. I definitely could not absorb a 50k unexpected expense though.

I realize this will not be a right or wrong answer but more of an opinion type question, which I value from this site. I'm looing into purchasing a Gallardo soon and just want a general idea of what income level most of you would feel comfortable doing so. It would most likely be a 04/05 in the under 100k price range. I am single, no children, own my own home and my total bills every month are around 38% of my NET income.

 

 

 

Jonathan

 

It depends on what your total net income is, and how much you are willing to stretch.....The tough thing right now is also getting financing on cars.

 

If your net income is $10,000, and your expenses are $3,800, and you have $6,200/month of disposable income, I would gather you could "afford" a 2004 Gallardo. Now whether or not they give you financing for it, is a different question altogether. Make sure you get a 6-speed, and make sure you have enough in the bank for things like a clutch change, tires, and other normal wear and tear items.

 

Also, the $50k item I assume is a brand new motor, and not an attempt to buy one used, or try and "fix" the block or heads of the car. If it is your only car this would be an issue. You can let it sit until you can afford to fix it too.

All very useful advice , any unexpected repairs over 15k would start to worry me . I've researched on this site the normal operating costs and can afford them without issue. As far as debt , the only thing I owe on is my home. I definitely could not absorb a 50k unexpected expense though.

 

 

Yea It can Get Scary. My Engine Went on my Gallardo with 12 Days of Warranty Left. They told me it would have cost almost 80Grand ... (in Canada) ... Thank God For Warranty As I would have never been able to replace that.

whats your risk tolerance?

 

Bingo!

 

I would buy it if I was comfortable letting it collect dust in my garage because it blew a major (expensive) part and had to wait to pay for its replacement.

 

Totally fatalistic view, but I tend to be more cautious on some things.

It does depend on the individual, and location - $100k a year around here won't get you as far as it would in let's say a very rural part of Montana.

 

And you say your bills are 38% of your income - well, if your bills are only $38 and you only make $100 a month, then you might not be able to afford it.

 

Again, as others have said, the repairs can add up quick if you're not prepared. Just understand the risks.

i'd go with a max of 10% of your income to car payments if your going to do some sort of financing

I think Gasman's is the best answer I've seen to a question that does get brought up often. If you can afford to deal with the worst case scenario then you can afford the car. If you want to drive your car you need to be able to absorb the bills and not worry about it. The car is there for your enjoyment and if your not driving it because your worried about something breaking or something broke and you can't fix it then that's a problem.

There is nothing worse than owning a car that you resent because it cost's too much to run.

 

 

Someone I know recently had a catastrophic failure of their Gallardo to the tune of 50k out of pocket (if he went through Lamborghini for replacement of his engine). If that wouldn't decimate you then you are ready. Most Gallardo's I've heard have small issues here and there, but some have had egear parts go out to the tune of 10-20k etc.

 

That's beyond ownership costs which most people that can afford the buy in can afford the upkeep, but buying a used exotic car is always a risk. This advice is coming from the owner of a used exotic car. Mine looks and runs great, but I always keep in mind that if I have a catastrophic failure it's going to take a chunk out of the pocketbook.

Lots of good info on here. Sure, most will say "if you have to ask..." But also, many people who are high-earning still ask these simple questions, if not just to see what everyone else's situation is.

 

I would suggest that you buy a stable car with solid history, 6-Speed like PikeMike suggested, and that you pay for it in CASH. I've heard many wise men tell me, "You buy your toys." The car will not appreciate and will have service costs unlike any other normal car, albeit less than an F-Car or older Lambo because of it's Audi influence.

 

Also, don't be afraid to spend a few grand more to get a "better" car than a cheaper car that will lead to costly repairs.

 

Good luck!

Well, I think this is a TWO PRONGED answer.

 

Considering that you mentioned "At what income level", it alludes to, that you plan on financing it. Which is not a problem, and actually makes more sense especially if you have residual income or cash laying around. It's always better to leverage money and spend less (putting your available cash aside to invest) and make small payments on a depreciating asset like a car. ($1,500 paymentX36months of ownership=$54,000), MUCH cheaper than just dropping 80-$100 grand that could've doubled over those 3yrs....

But anyways; from a banking perspective, it never makes sense to increase your debt if you are already hovering around 40% DTI (debt to income). you mentioned you're at 38%... Financing is going to pretty hard to convince a bank to give you anything more than a Nissan Altima (IF a new$1,500pymt will increase your monthly DTI more than 5%). And let's be honest...........YOU know what you can afford...If the prospects of; handling another $1,000-$2,000 payment a month; $10k-$20k down just to convince a bank to give you a loan (because of the lenders' 'risk tolerance'); and a potential $5,000-$50,000 in unplanned repairs or maintenance; concerns you, then it might be a good idea to rethink your approach. If none of that changes your mind, then fcuk-it, go for it and drive it like you stole it!!!

 

Second option is a little easier: If you have the cash to drop on it, ($80-120k) and walk away from the dealer clean, and those other expenses do nothing but put a smirk on your face, then make it happen!! If not...............Please see option one.

Also, don't be afraid to spend a few grand more to get a "better" car than a cheaper car that will lead to costly repairs.

 

Can you expound on what you mean by getting a "better" car? Are you talking about mileage? Year? Maintenance by the previous owner? Recently replaced clutch or other services recently completed? Certified pre-owned from a dealer?

 

 

Thanks.

All very useful advice , any unexpected repairs over 15k would start to worry me . I've researched on this site the normal operating costs and can afford them without issue. As far as debt , the only thing I owe on is my home. I definitely could not absorb a 50k unexpected expense though.

 

If the above is the case, Bottom line: you can't afford it. Period.

 

In addition, for early G owners, it cost them $100K in depreciation so far. Are you factoring in depreciation, which is usually MUCH larger than any repair bill you will likely face with a G?

I know this will get laughed at by car guys. But If the lambo is a second car or better yet a toy, you might

consider a partnership with another person on the lambo. This kind of thing is done all the time with aircraft.

The two rules on a deal like that is to find some you really trust and have the partnership set up in writing

buy a lawyer. you might be able to set it up as a LLp or LLc ect ect. I know a guy that has his aircraft

set up in some sort of L.L.C to protect his assets for his family in case he buy's the farm.

I should have been more clear, I will more than likely be paying cash.

Can you expound on what you mean by getting a "better" car? Are you talking about mileage? Year? Maintenance by the previous owner? Recently replaced clutch or other services recently completed? Certified pre-owned from a dealer?

 

 

Thanks.

 

All of the above, yes. Mileage not as much as hard copy maint. records and a solid PPI, new clutch and services done. Years really make difference on E-Gear and things like the lift-system.

 

To original poster, think of it this way... If you took 100k (or however much the car costs), and burned it in front of you, could you do without that? NEVER getting it back? And if you then had to spend $15k on that 100k that you'll never see back, could you sleep at night? It's a toy, it's an exotic. Consider it that way and you will think straight. It's not a plane, no fractional ownership!

I should have been more clear, I will more than likely be paying cash.

Fine then... What's your problem??? If thats ALL your cash, then.....

 

$15k+ in repairs shouldn't concern you if you're dropping $100k on ANYTHING.

 

I'm calling a "WASTE OF TIME" alert on this thread gentlemen.

Fine then... What's your problem??? If thats ALL your cash, then.....

 

$15k+ in repairs shouldn't concern you if you're dropping $100k on ANYTHING.

 

I'm calling a "WASTE OF TIME" alert on this thread gentlemen.

 

 

Swil,

 

It would obviously be "all my cash" , and 15k in repairs wouldn't break me but it would put a dent in leftover savings. As for the " fine then, whats your problem" comment, nowhere listed here says I have a problem. I stated that I value the opinions of members here and wanted to know at what income level they thought it comfortable to purchase a Gallardo. It's only a waste of time if you continue to visit this thread.

I stated that I value the opinions of members here and wanted to know at what income level they thought it comfortable to purchase a Gallardo. It's only a waste of time if you continue to visit this thread.

Dude, I meant all of the cash that you have. But Fair enough...Im not gonna argue. I'm only saying, after 4 posts, you know the facts: $15-$50K (could be more) potentially at any moment. You're paying cash, great!!! So why would income be an issue then?

 

What other opinion is there? Now the decision's yours.

 

My take on this is for a toy, you should consider the money spent and non returnable, ie if you spend $150k its gone and if you do get money back if and when you sell consider it a bonus.

These cars are a liability and don't let anyone tell you they are an investment.

All that being said they are good fun and if this is how you plan to spend your disposable income (not your second mortgage) go for it.

 

Russell

Swil,

 

It would obviously be "all my cash" , and 15k in repairs wouldn't break me but it would put a dent in leftover savings. As for the " fine then, whats your problem" comment, nowhere listed here says I have a problem. I stated that I value the opinions of members here and wanted to know at what income level they thought it comfortable to purchase a Gallardo. It's only a waste of time if you continue to visit this thread.

 

 

I read this completely wrong, I read it as "all my cash" as in mine and not someone else's (ie bank) . It would not be all my available cash.