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Should You Buy Your Dream Car? 5 Reasons Why I Chose Not To

Here it is. The Ferrari 360. I’ve been drooling over this car for the past 15 years… And Liz and I officially have enough cash in the bank to pay for it. BOOM! Looks like I’m buying my dream car!!

Well….maybe not…

buying my dream car


5 Reasons I’m Not Buying My Dream Car

First of all, I highly doubt that Liz would give me the thumbs up on this ride since it’s not exactly kid friendly, and then there’s the minor detail that it would entirely deplete our savings account…

Aside from these reasons, there’s yet another five that would keep me from buying my dream car (ie. crazy expensive car)… and for this, we have to diagnose the different spenders in this world.

There are really three categories of spenders:

  1. Those that believe going into debt is okay as long as you can afford the payments
  2. Those that believe it’s dumb to go into debt. But, if you have the cash, spending the money is okay.
  3. And then there are those that spend based on the future value of their assets. In other words, buying with cash is great, but it’s not always smart.

During my adult life, I’ve found myself in each one of these categories:

  1. I took out loans (from Mom and Dad) for my college education. At the time, I thought, “No big deal, I’ll earn bank with my college degree and I’ll pay it off no sweat.” Thankfully, I only borrowed $12k and didn’t get into too much trouble here.
  2. While I was in school, I made the discovery that I had saved $5,000 in my bank account. Woot woot! Within a matter of days I bought two flat screen TVs and a 7.1 surround sound system… Hey, I paid with cash, so it was okay right? Nope… They were stupid purchases that later forced me into debt (…refer back to point #1… 🙁 )
  3. And today (as you may have already guessed), I’m definitely a no-debt kind of guy. And, even if I can afford to buy something, it doesn’t at all mean that I should buy it.

A $75,000 Ferrari would be absolutely awesome…but there are 5 reasons why I probably shouldn’t buy it.

1) I’d Get Sick Thinking About the Depreciation

The exact cost of this Ferrari is $73,899. By next year, it’ll probably be worth about $65,000. And then the year after that, it’d be worth $60,000… And down and down it would tumble.

Just to keep my net worth even with the year before, I’d have to save up $8,000 the first year, and then another $5,000 the year after (and so on and so on).

Would this car really be worth this net worth battle? Well…. it is pretty sweet…. but no, probably not.

Related: What is Your Net Worth? And Which Way is it Moving?

buying my dream car2) The Maintenance Costs Would Suck

Buying an expensive car is just the beginning. There are tons of other expenses that will sneak up on you within just a matter of months:

  • Insurance: this would triple. Instead of my $500 a year now, I’d have to pay $1,500 a year – and that’s with a high deductible!
  • Oil change: $195
  • Annual fluids: $995
  • New clutch: $3,200
  • Brake pads: $816

And any major service would be over $3,500.


In any given year, I’d have to shell out another $4,000 minimum just to keep the car on the road…

3) The High Would Only Last For About 2 Weeks

Let’s be real. Owning a Ferrari would. be. AWESOME.

It’d be fast, it’d be fun, and everyone would want to be my best friend. Heck, I’d probably even let everyone drive it. I’d be pretty well-known within my little city of West Michigan.

But…how long would this awesome car feeling last? Probably about 2 weeks…and then it would feel just like any other car taking me from Point A to Point B. And in fact, it might even be more of a hassle than all the other regular cars on the road…which would cause me to love it less.

4) Stupid People Would Hate Me

I really don’t care what other people think of me – especially stupid people. But, they could still really make life a lot less enjoyable.

Do you know what stupid (selfish) people do to a Ferrari 360 that’s sitting in the parking lot? They spit on it, key it, give it an intentional door ding… all because they think the owner is a no-good selfish rich person…

But what if that ‘selfish rich person’ gave away more money in a year than than the ‘stupid person’ earned? Wouldn’t that be a good thing? Wouldn’t that be much more of a help to the poor than the person that earned little and gave absolutely nothing?

Liz and I love to give to charity, and honestly, one of our goals in life is to keep earning more so that we can keep giving more.

In other words, you know that goose that lays the golden egg? Instead of giving away the goose (to appease the stupid people of this world), why not hatch and grow 10 of them? Or maybe 100? And then our geese would lay thousands of golden eggs each day – many of which we could give away and do great things with?!

If we could succeed at this and give money away to thousands of needy individuals, wouldn’t it be okay to buy a nice car for ourselves? I personally think so.

5) I’d Much Rather Have My Money Work For Me

Unfortunately…Liz and I have only one goose (our rental house) right now… so as much as I hate to admit it, we’re probably not in a position to buy a $75,000 Ferrari 360 just yet…even if we do have the cash.

Our next move is to buy another rental house so that our money can keep working for us.

So, instead of watching our Ferrari go down in value each year, we could:

  • watch our rental house go up in value, and
  • receive a nice rental check every month from our renters (our golden egg!)

At this point, I’d much rather feed my money back into another investment to make even more money than to take out the profits and waste them completely.

What’s Your Take?

If you had $75,000 chilling in the bank, would you buy something extravagant like a Ferrari 360? Or maybe a brand new Tesla? Or maybe you’d want to do a complete remodel of your house?

The real question is, would you:

  1. Use the money to load up on more debt (ie. a $500,000 dream house)
  2. Buy something with cash that might depreciate in value, or
  3. Use the cash to buy another solid investment that will product more cash later?

Be honest with yourself! Let me know in the comments below! What would you do with $75,000?

Battle of the Mind Investing Money


My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.


  1. I bought a 46k Corvette years ago in your position. If I were in that position again I wouldn’t do it. But at the same time in a few years when your on good financial footing I see no issues with it. After all I still own the Corvette so I’m making the decision to buy it each year I keep it. As for the Ferrari, I suspect it won’t depreciate much and might appreciate as a collector item. But the maintenance would be brutal.

    • Thanks for the awesome comment, FTF. I love how you say you make the “decision to buy it each year I keep it.” Love it, because that’s exactly right!

      I still drool over this car, but thankfully I understand that it’s not time for me to have it…yet. I’m a firm believer in owning cars that are valued at less than 20% of your income. Currently, I’m not making $375k a year. Maybe if this site takes off and I start speaking and writing books…and bump my earnings up to $400k…then MAYYYBEEE I’ll do it.

      You’re right though. The maintenance costs would be awful…

      For now, I’ll keep driving my 2003 Pontiac Vibe and our 2008 minivan! 🙂

  2. My dream car is a Mercedes SLK but won’t buy one now or probably ever. For one thing, it is so low to the ground that at my age, I might need a crane to lift me out of it (bad knees). Also, we now like to pay cash for our cars and if I took the lump sum out of our portfolio, I’d fret about who much interest/dividend income we’d lose by not having that capitol invested. We are still recovering from paying cash for our custom home built in 2015 so the car definitely has less motivation than we have for re-building that balance.

    • Maybe you could rent one for a week just for kicks. 🙂 It wouldn’t drain your account, and it would only hurt your knees for a week!

  3. I will never understand the appeal of really expensive, impractical and depreciating assets like fancy cars. Mr B cringes every time I say this but he does agree to some extent.
    Of course, I have my own vices – nice holidays and eating out etc. So I’m glad I don’t at all want to buy a big hunk of metal.
    I hope lots of people read this and make great choices 🙂

    • Sounds like you fit the stereotypical mold. Guys don’t buy a lot of stuff, but when they do, they buy really expensive stuff. Women – they just like to buy stuff. Is it ever expensive? Typically not, but over the course of a few years it can easily add up to thousands!

      We’ve all got our issues. Mine would probably be cars. My wife’s is horses. We’ll buy a few at some point, and they’re going to cost us big money. The beauty is, she’s willing to wait till we can afford those depreciating assets. 🙂

      • That sounds like a good plan waiting until you can afford something without fully depleting all of your savings. Best of luck 🙂

        • Basically, we’re waiting to be millionaires and then we’ll start to enjoy a few of the finer things of life – all the while still saving aggressively for retirement.

  4. Nice work, Derek. I think buying your dream car would be like going out with your dream girl. It would be exciting at first but you would come to realize that she was more exciting as a dream.

    As for the $75,000 question, I would put it into an index fund and come January I would pull out $6,500 and move it to my Roth IRA.

    • Hi Cooper. Ha! Nice analogy!

      As for the $75,000, we’re saving up a bit more and we’ll use it to buy another rental property with CASH! We’ve got one already and it’s been awesome. It’ll be exciting to get rental #2 going!

  5. I completely feel the opposite. I got RID of my dream car and I’ve been broken hearted ever since. There’s NO feeling like driving that car around and getting compliments. Maybe I’m shallow, but…!

    • What do you most value in life, Karen? Experiencing new things? Helping others? Spreading your spirituality? ….or is it looking good to others…?

  6. Well, I have recently bought my dream car. Used, but a 2012 Porsche 911 Turbo for $80k. I have still in the bank over $100K in savings and are making enough that every month, with all my payments, still putting away for savings $5K+. Call me short sighted and maybe mid-life crisis situation, but I was going to lose my mind from work stress/wife stress. This calmed me down and I am actually happy. What is increased productivity worth? especially when that increase also increases your net income? Is it worth avoiding cancer from being over stressed? Got to do more than crunch numbers, but think about life as well. I have 3 children who are denied nothing. My wife is denied nothing and we live a very comfortable lives. I believe sometimes a person’s happiness is more valuable than money.

    • Sounds like you’re doing just fine, John. You’ve spent some money on stuff it sounds like, but what about experiences/relationships as well? That’s what will truly make you happy.

  7. Just retired and bought a corvette, being a car guy ive had many, but this one is a little different. Life is way to short to worry about becoming a millionaire, spend it while you can and enjoy it. You dont need 500k in the bank to be happy. There are so many people at the cemetary that wished they would of done this and done that. F—- it, enjoy life. You want a sportscar, go buy one today, you may not be here tomorrow.

    • Ultimately, we used the proceeds from the project house (and our primary) to buy our new primary house. WAYYY better than a stinkin car. We’re loving it.

  8. Great post
    I am a big car fan myself. Just started my new job as a physician. I have been reading a lot of personal finance and FIRE books for a while and I knew all the above but when it came to practice I went and bought a corvette z06 worth 67k. Great car, very comfy, super fast. As you mentioned above, the high lasted few weeks and I am planning to sell now. I thought a car of this caliber will bring me happiness, but it didn’t. I feel now that it is a big liability(financing) with a lot of hassles.
    Just the tires will cost me 2000$, they last 12k miles on average. Wanted to get a Paint protection film, 6000$, etc..
    It is easy to fall into this trap especially with all the advertising and the peer pressure. I will lose some money selling after 3 months but I want to get out early before putting another 50K in a depreciating asset.

    • Hi Ali. Yup, it’s best to just get out of that car now. Instead, build your wealthy quickly (you’ll be able to do it with your income), set up your income-producing assets, and then you can buy a nice car later when you’re too wealthy to even care.

      Thanks for reading! Keep me posted on your wealth journey!

  9. Easy solution for me was having your dream car not cost that much. I’m looking at a $25k Honda S2000 and those these days are only going up in value if you maintain them well. But i plan on driving it into the ground.

    • $25k is still a pretty good chunk of change!! We just bought a $15k truck and I absolutely hate the way it hurts my net worth. Last year, it depreciated by probably $2k. It’s not a ton, but it’s still taking our net worth in the wrong direction.

  10. Too funny I’m looking at a manual red/tan 360 on eBay right now for about 75k buy it now. I also have rental properties and have decided the smart money pay off all mortgages including my primary residence first. This way my rental incomes will be paying off my 360. I agree with your insight however I do see the 360 doubling in value over the next 15 years good luck with your dream car!!!

    • Haha, sounds like we’re the same person! 😉 One question though – how is it that the 360 will double in value? That sound like an absurd statement to me. Most cars depreciate. Very few become more valuable.

  11. Hmmm. My dream car is a very fancy Jaguar SUV. I have enough money that I will be able to pay for the majority of it in cash.

    But see to me, a luxury car is something that I’ve always wanted, and when I got one, I was more in love with it than I thought possible. I currently have a Lexus, and now that I’ve had a luxury vehicle after a lifetime of used Hondas, nothing has ever made me feel more comfortable driving. The feel of the seat, the convenience features, the safety and driver assist packages, the look of it, how I feel it pick up quickly and invigoratingly when I push the pedal. Whenever I rent a car for travel, I always go cheap, and man…I am never happier than I am when I return to the car that makes me feel like I’m riding in my own personal armchair on wheels with surround sound.

    But too, there was a point in my life that I lived out of my car because of circumstances out of my control as an older teen. I collected cans for 10 cents each to be able to afford meals some days. My car was shelter and safety, and there is a part of me that will always feel more attached to the car that I’m driving than anything other belonging I have. My cars have taken care of me, and I’ve taken care of them in return. So to me a really nice car will never quite be just 4 wheels that give you from A to B. It’s a reminder of how far I’ve made it and something truly special.

    But I worked incredibly hard to get my life in order. I have regular income and a side hustle I love. I have a large savings. I have a house that I share a mortgage with my spouse and some lifelong friends. I invest roughly 30% of my income. I know that it’s true, money can’t buy happiness…but for me, a nice car quiets a part of me that’s been through a great deal and lived to tell the tale.

    I know that logically, it doesn’t’ make sense, but the heart is a wild beast. So I suppose we all have our vices. This one is mine. XD

    • Ha, well said Vix. I still don’t fully agree with you because of what depreciation can cost you, but to each his own. As long as you’ll enter your retirement with plenty of money and happy with your life’s choices, then good for you, man.

      Thanks for reading!

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