anon3838 wrote: ↑Tue Jan 19, 2021 9:35 am
I love fast cars. Not for the status, but for the feeling of the tires gripping the road. Hearing and feeling the growl of the engine.
I would need about $40M in investable assets to buy an exotic car. At around the $10M Mark I would consider attending events where I could see them, drive them and talk about them.
I tend to be pretty hard on people for over-buying on cars. I'm convinced it's the biggest obstacle for most Americans for building wealth. But, your guidelines seem WAY too conservative to me. I usually resist net worth-to-car price ratios because I think income is a better parameter. But not buying an exotic without a *liquid* net worth of $40M seems nuts. If an exotic costs $300k, that's only 0.75% (75 basis points) of the investment balance, less than one day's moderate market fluctuation. That would be equivalent to a wealthy Boglehead with $4M (enough to supply $160k/year income + SS) buying a $30k car (eg. a new mid-trim Honda Accord). If there is a net worth threshold for buying an exotic, it's gotta be far less than $40M.
And in case you didn't know, you can "attend events where I could see them, drive them and talk about them" for pretty cheap. I'm sure you can do the first and third for free. And driving an exotic isn't that expensive. You can rent a Ferrari 488 Spider in Vegas
for $1300/day. You can also drive a Ferrari on a race track at speed
for <$500. You don't need a NW anywhere close to $10M to afford that.
Also, if you love the feeling of driving a fast car, you should look into the various forms of high-performance driving and amateur racing. You can get a Spec Miata or various other track-worthy cars for $50k or less, and properly prepared they'll be similar in lap time to all but the highest-end exotics. Ongoing costs are significant though (tires, brake pads, track fees, etc.) so that must be included in the budget. But, if you want to go fast on the cheap, there are lots of great options.