Well you know that ALL car salespeople. Have gotta lower their customer stereotype and standards. Just for selling another car? Every once in a wildly stretched stratosphere? Lol
Sure. But unless your buying one for him and one for her? Don't count on her still being at home. When you get done signing your life away for that sweet Lamborghini? Lol
@@MrEazyE357 Of course, and those people shouldn't be buying a nice shiny new car, or a big screen TV, or a super car. Live within your means.... unlike the government Took me many stupid purchases to realize I pissed away 20 here.. 50 there. We're talking decades here. Once I stopped, I was able to buy nicer and nicer things
Yeah tell that to the renters and mortgage companies. I can live in a shoe box but my kids can't. No reason I should live like I don't have a job when I make decent money. The dollar just doesn't go as far as it used to. 🤷♂️
buy a house when the market is low, refinance when the market is high. slap a big down payment on a supercar. but with cost of living in general areas, I wouldn't consider one until you make close to or over 6 figures. unless you're gunna be that guy parking his lambo at the trailer park lol.
The 2 rules I generally follow with this is: 1: Don't ever be upside down on the car's value 2: You should be able to take the hit financially (still be able to pay rent and food) if you wrap it around a tree
@@greyosu9247 That's pretty shitty advice. Pay more money monthly to insurance because you couldn't pay more downpayment so your already too-long monthly payments for a car not worth what you're paying off in case you crash it and can't afford food. You shouldn't be in that situation to begin with.
Ed, we’ve seen all of your friends car stories but the one person we haven’t heard from is your wife! If Mrs Bolian would be up to sharing a story, we would all love to hear it. I’m sure she has one or two really good stories. Thanks!
@@nitro677racing just gonna have to repair it yourself. From my research there are a lot of home remedies for issue. The worst one is the cam phaser issue that will eventually need updating and tearing the head down
Borderline5440 at this point, a McLaren is actually a perfect car for a lroject where you DIY the whole thing. There’s a guy in instagram called rille347 who does exactly that to his 720S, going as far as to make his own front end to the thing.
Ed, great video. Very useful. My first exotic was a 1997 NSX. Bought it at 27 years old, and my dad had to “co-sign” ... but I still have it today with 52k miles, all OEM/stock. Definitely worth it.
I just bought a 360 Modena using the Ed lowballing tactics. Flew across the country and drove it home. It’s a dream come true even if it’s a POS to the average Ferrari enthusiast 😅
okcivicx thanks! High mileage (44k) and a little rough around the edges, the perfect guilt free Ferrari! Will try to make some videos on it here soon as it needs a lot of little odds and ends and I’ll also be doing the maintenance myself.
@@daytonaguy3584 if you're going to the grave, then by definition you don't have regrets. Dead people don't have feelings. However, those you leave behind will be left with your poor decisions and debts. I sure hope with thinking like that you don't have a significant other/dependents.
I’ll never forget a guy telling me “for the amount you spend on all these cars you could have got a Lambo”. And he was right. Although I do enjoy driving a different shit box each day of the week.
It depends on person perspective too,some love to modify their car more than buy high performance car.For me I aiming for buying new Lamborghini and it definitely be permanent car in my garage because it's my dream car.
I expected not to like this video, as i am more of a Dave Ramsey person, but I was pleasantly surprised.The key, from ed, is avoiding that loss of principle which is done by buying used. I think ramsey would approve. I do not like the concept of financing a car. I have financed one car in my entire life and hated it so much that have never done it again. I have also had what most people would consider exotics my whole life. In my 20's I had a Porsche, a Ferrari and a Lotus at various times, and I had no real money. Each one was purchased "With needs" and after it was fixed and I had enjoyed it a while it was moved on for the next one. The Porsche replaced a Duetto, the Ferrari replaced a Fiat Dino (Which surprisingly the Fiat Dino is worth much more than a 308 now) and the Ferrari was replaced by a Lotus. Each had a car that financed it's purchase. I don't know how easy this would be to replicate as this was during the 80's and cars were simpler, but i do know that putting a clutch in a gallardo is not rocket science, and you can buy a Gallardo that needs a clutch for a lot less. Ultimately what I got from this video is that you can play with exotics without going broke and if you are somewhat smart about it you may not make money but you can turn it into a zero sum game.
Ed, just wanted to let you know that I used your 'used vehicle buying tips' when I bought my daily driver 2018 Titan XD last month. Contrary to your belief, your advice IS applicable to non-exotic cars. I feel I managed a shrewd negotiation and bought the truck for $4K under asking, which may not seem like much, but it frees up that money for any equipment or aftermarket parts I want on it. Thanks for the great content and confidence to get what I want without getting worked over at a dealership!!!
I got into med school after finishing my undergrad and at the moment I’m doing my residency as a anaesthesiologist, my entire motivation comes from cars. Although I’m not from a poor household whatsoever, both my parents are medical professionals who make around 500k-600k per month together. My dream car has always been the original lp700 aventador. Hopefully once I finish my residency, I can buy my dream car.
This is really good advice. My '18 Acura NSX is pictured left. I've spent nothing on this car in my 1 1/2 years of ownership beyond the monthly payments, gas, and I do the maintenance myself which is a few hundred dollars.......That's exactly the way I planned it. I bought it brand new, with a warranty that I haven't had to use, and with Honda reliability, I'm pretty sure she'll be problem free for many years. As for depreciation, that only matters if you plan on selling the vehicle........I don't sweat depreciation. BTW traded in my Gen V Viper GTS for this....made $29K..on that....
So you plan on keeping your NSX for??? I want one and I love the NSX but it really is a bad example for this strategy that Ed explains in the video. Probably the worst depreciating exotic after Maseratis. 2017/2018 examples can be found now for 115-130k
Happy for you. I also want to buy my first exotic car which is Lamborghini brand new because I want to spec it as I want.This car will permanent car for me since it's my dream car
you mean when he created whole vinwiki to drive up price of Manual LP640 to sell at profit and use that money to buy another free of debt....best advise ever
There is this guy in my country who has a really common construction job and spends almost literally any penny he owns on his cars. Dude has owned a nearly endless list of exotic cars and currently drives a Lamborghini Murchielago. The guy really should have his own RUclips channel, but he does occasionally pop up in car vlogs and magazines.
Great video. I have stressed myself out a lot buying exotics and trying to keep them under 10% of my net worth. It always ended up being more like 25% which ultimately made me feel I wasn't making a "grown" up decision keeping them. Glad you made this makes me feel better about going over 10%.
Everything Ed just said.. i wasn't listening to purchase an exotic car.. i was listening to purchase a $15000-$30000 car and everything still applies and is still relevant. Ed is brilliant
This is great Ed. Once someone understands finance, a whole new world of common sense opens up. How much does a car cost? Depreciation + finance costs + MRO (Mainenance, Repair, and Operation).
1. Dream 2. Write your dreams down 3. Work and save and make steps to make your dreams come true There is nothing stopping you from achieving your goals.....
I recently pulled the trigger on a used R35 GTR. It took me a long time to decide, and everything you mentioned in the video is genuine. The cost of ownership, depreciation, and other surprise costs were all things to consider before buying the car.
That's the way to do it, I'm 50, I've been buying & selling cars since I was in high school, I currently have 17 in my shed, I own my house outright, I have 3 rental properties, all from my love for cars,
Wise words - this is pretty much the exact considerations I had before I bought my LP560. With regards to maintenance costs, try to find a car that’s had major necessary work done recently. In the case of my Gallardo, I found one that had a new clutch installed (one of the inevitable big expenses with these cars). It doesn’t add much to the sale price, but is worth hunting out in order to avoid paying the extortionate cost further down the line.
I bought an 06' porsche 997 911 a few years back, drove it for a couple years and sold it for the same price I bought it. No issues, only regular maintenance.
Ed gives great advice for anyone wanting to buy any car... whether you are rich or poor. Debt ratio, income, maintenance, and up keep he provides sound advice.
@@lwdn3379 You are correct. We were told by multiple in a high risk area because of the number of accidents. So even if you have a good record, it might stop you from getting that dream car.
Good, clear insight. Many people have trouble seeing beyond a simple monthly payment. Your explanation may help some folks "raise their eyes" a little, and understand car ownership (exotic or otherwise) in a wider context. And dang you are easy to listen to!
I’ve heard people say you shouldn’t buy one unless it’s less than 10% of your net worth. If you're worth $10 million, then maybe spending $1 million on a car isn't insane, but if you're only worth $500K, it's probably not the best move.
Exactly. It's not just about the sticker price either. The maintenance, insurance, and depreciation can add up real fast. I've read that owning something like a Ferrari could cost you a few thousand dollars a year just to maintain
That’s why I feel like wealth management plays such a big role here. If you’re not balancing your investments with your lifestyle purchases, you might be setting yourself up for a shortfall later. You can’t put all your money into luxury and forget about long-term goals
Yeah, I agree. You have to ask yourself, 'Am I sacrificing my future for a car now?' Personally, I have a rule where I only buy toys-like cars or vacations-after I've hit certain milestones with my investments
That's smart. I think too many people get caught up in the flashy stuff without thinking about whether they’ve really secured their financial future. I know for me, I worked with my advisor to set up a plan where my investments generate enough returns before I spend on anything luxury
It comes down to being responsible not just in the purchase and how it relates to one's finances, but also in how one drives this type of car. I never speed around town, but I've stretched my 911's legs in the hills once a week since I've owned it. Responsible freedom!
This is a great video to explain this. I've followed his strategy, but modified it to a bit more affordable cars. Started with an F80 M3 that was 3 years old (bought in 2018) and am now selling my M4 GTS for a 981 Cayman GTS and have built over $20k in equity in the vehicles I've gone through. There has been a hiccup or 2 along the way, but if you follow the rule of purchasing a car that depreciates less than 5% a year, you can be seriously considering true exotic cars within a span of 5-7years with a 40-50k income. It's seriously amazing and I have spent less than 5k in 2 years to drive my literal dream cars.
I owned 4 cars as a 24 year old, I lost alot on my previous 15 Audi A6 when I got my c43 amg. Very nice cars but I should have just stayed in my 11 ford taraus with $25k in the bank and bought a old Porsche to have fun in. Still doing great but I've made a promise no new cars until I can buy my Lamborghini huracan and if the c43 shits itself then I'm trading it in on a 03-05 e500 or 12 Honda accord
My dad always told me if you can't afford to buy something 10x over don't buy it. It's crazy but I like it. When he bought his zr1 he saved over 1 million dollars to finally be able to buy the damn car!
Patience is key. Wait for your "dream" car to near the bottom of its depreciation curve. Buy the nicest example you can afford, and enjoy driving it. I never want to buy a car im afraid of putting miles on. I like how ed says he looks like a powerball winner from 10 years ago haha
Love all the explanations and I couldn’t agree more. People need to treat buying a car ( or a home ) like a 401K. It’s an investment. It has to make financial sense. Buying new for a short term ownership makes very little sense. My wife and I never buy new. In 12 years we went from a crv to a Tiguan to an X6. Always at around 4 years old 40000 miles and at prices 50-60% below original price. It allows us to drive nice cars for less than 250-350$ a month and when we resale 2-4 years later to have a minimal depreciation hit. All of this makes for a very reasonable cost of ownership. The crv cost of ownership was 230$/month. The Tiguan SEL was 270$/month. The X6 so far is 400$/month after 32 months. We had some mechanical issue that needed attention but the forecast is about 350$/month after 48 months. Not bad for a pretty much all equipped 2015 X6 with currently 67000 miles. Also, for couples, never have more than one car loan at a time. Lastly never finance more than 50% of a used car.
Another factor to consider is Parts, My favorite is VW product. You know the parts are gonna be cheap and readily available... I always open the hood and look at Things like alternator, PS pump, water pump location. How easy is it to replace when it goes bad... my Favorite workability is Corvettes so Easy to work on so much space. Anything with inline six has a lot of space to move.
So happy I found this video. I can see everywhere on the internet giving financial advices about cars but none of them were truly car enthusiasts. Everyone sees a car like a status symbol and no more than that. To me, is the motivation of moving forward, the reason why I don't give up, the strength of belief and the ambition to succeed. You can't tell me to spend no more than 10% on a car because otherwise is iresponsabile
Ed's last point is called "carrying cost". It's how most people buy/finance an exotic car, keep it for a year or two and then sell it for what they paid. The net cost of ownership is very low but the carrying cost is very high. This is a calculated risk.
Good to know this kind of information. It's not something that everyone thinks about. It's also something that you have to factor in when making a purchase. It doesn't have to be an exotic either. It could be a sports car or something that the lay-person that doesn't have a larger income can afford.
Since the hurricane decided to spare us I shall continue my morning routine of vinwiki and coffee love to hear the stories and it helps me be in a better mood for the rest of the day!!
For people my age (31), the depreciation factor is primo right now for all the cars that I wanted when I was 15. Ferrari 360, C5 Corvette, Porsche 996. All bottomed out right now.
Great info and a conversation that no one but you Ed could have and say the word “responsibly “ and mean it. Thank you for the wisdom. Here’s to our super car aspirations.
in fact, you don't need one: uncomfortable seat, hard to get in/out, practically no room for anything, obstructed view, loud engine right in your ears.
Good summation! The same applies to airplanes. I've not owned a supercar, but I've owned airplanes and this rundown was great. I'll add that it's wise to have a maintenance fund. Every month, stash some cash into a maintenance fund. If that big maintenance item is $15,000, amortise that amount of money over the expected time frame you estimate you will need to do that maintenance and fund the account.
A few years ago i purchased a 2000 BMW 328ci and a 2003 Ford Escape XLT... The BMW has been the worst financial decision i have ever made and the Ford the Best Lol...
Don't buy em, rent them! No maintenance costs, no heavy burden on the wallet, and you can always rent the most current ones without having a depreciating paperweight sitting in your garage. If you're a business owner, write that rental off!
I bought a GT4 for $73,500. Drove it 4 months and sold it for $80k. If you buy the right cars you will be fine. Avoid Mclarens, V8 and V10 BMW, big body AMG cars, and Aston's with poor service history and you will be fine. A highly depreciated Gran Turismo, GTR, VIPER, E36 or E46 M3, older 911's you will always be fine.
Timing is all about your personal situation and goals with a car purchase. If your goal is to drive an exotic on occasion, save yourself a ton of headaches and rent or lease one short term. If you are thinking about an exotic as a daily, again rent or lease one and make sure it is really something you want to live with. Nice thing about the rental/short term lease is you can usually avoid the cost of major repairs. If you must own an exotic, it shouldn't be your only car and you shouldn't finance depreciation of any type. (Depreciation can be really ugly for some makes and models and financing them is just paying a premium for a loss). Sure you can get a warranty on newer models, but cars in the shop for warranty work do not give you any joy. To me, the reason to buy such cars is for the enjoyment they provide. If the idea of writing a five figure check for repairs bothers you in anyway, the odds are that if you are playing with older exotics, you will lose the joy which you sought. Once you get to six-figure price points, you are in a realm where being able to afford the payment is the exact mentality that will end up costing you a lot more than you can handle. If you desire to maintain good credit for any reason, think long and hard before committing to financing a exotic car - the terms they allow are risky and the exit provisions are not favorable. Those 7 year loans might make sense if the value is going up, but if the transmission takes a dump after 5 years and you are out of warranty, the misery of the next 24 months will be what you remember.
I think it boils down to what are your priorities in life? Like for us car people, our boundaries of "responsible" are different because cars fullfill us in a special way, so we don't mind allocating more income towards them
That moment you realize why Ed was such a successful exotic car dealer...
You're practically losing money if you don't buy a 10-year-old Gallardo.
@@chrisreynolds6391 lol! And people keep falling for it.
LMFAO on point, I'm doing percentages on my income as we speak
This guy could be selling me a v10 m5 with 100k miles on its original engine and i'd still end up buying it
Well you know that ALL car salespeople. Have gotta lower their customer stereotype and standards. Just for selling another car? Every once in a wildly stretched stratosphere? Lol
You can live in a car but you can't race a house.
That’s why i live in my car
You never heard of trailer drag racing
I’m boutta gap a civic pulling my mobile home
@@alexc.8505 hey now i think my 20 year old civic would do just fine 🤣
Living in a Lamborghini may not be the most ideal or practical thing in the world, but that’s a scarified I’m willing to make.
“Ed stop making these.”
-my bank account
lol
I woke up my neighbors, laughing about this comment. So true. Thanks! It's been a rough week.
@@xero256 Hope you have a better week going forward
xero256 Ha! Glad I could help even a little. Hope things go better in the coming weeks and months.
I was your 1000th like
Car guys everywhere: "Hey honey, this guy online said I can buy a Lamborghini!"
Sure. But unless your buying one for him and one for her? Don't count on her still being at home. When you get done signing your life away for that sweet Lamborghini? Lol
😂
@@earlputnal9124 She may leave, but more will come.
@@omgvague But not the kind that you'd want to stay with? Lol
@@earlputnal9124 Cheaper if you pay upfront anyway ;)
Dave Ramsey already found and disliked this video
Actually he would probably like it. A lot of what Dave preaches is in this video.
Dave Ramsey also preaches about living minimally and lives in a 14,000 square foot mansion.
Ed needs to sell the car, get on beans and rice, and start delivering pizzas every night.
@@policywonk8346 he absolutely does not preach living minimally. Just live below your means
Dayton Wintle You clearly haven’t seen his whole recent video series about living minimal....
"All of your bills should be less than 50% of your income."
If more people learned this, there would be a lot less trouble in the world
Some people don't have a choice though.
@@MrEazyE357 Of course, and those people shouldn't be buying a nice shiny new car, or a big screen TV, or a super car. Live within your means.... unlike the government
Took me many stupid purchases to realize I pissed away 20 here.. 50 there. We're talking decades here. Once I stopped, I was able to buy nicer and nicer things
Yeah tell that to the renters and mortgage companies. I can live in a shoe box but my kids can't. No reason I should live like I don't have a job when I make decent money. The dollar just doesn't go as far as it used to. 🤷♂️
@@rayman1230 exactly, inflation goes up but wages stay the same
If only it was that easy. I make significant more than minimum wage where i live and still only save 30% if my income due to living expenses.
So in short you don’t HAVE to be rich but it definitely makes things easier 😂
gtav
Life in a nutshell 😂
Amen.😭well.. Looks like I'm going to Pilot school after all. Lmaooooo!!
Actually, NO. You HAVE to be rich to own the same cars Ed drives
buy a house when the market is low, refinance when the market is high. slap a big down payment on a supercar. but with cost of living in general areas, I wouldn't consider one until you make close to or over 6 figures. unless you're gunna be that guy parking his lambo at the trailer park lol.
The 2 rules I generally follow with this is:
1: Don't ever be upside down on the car's value
2: You should be able to take the hit financially (still be able to pay rent and food) if you wrap it around a tree
Anze G Agreed 100% but many like to live high on the hog on credit!
If everyone followed this, there'd be no traffic in LA, New York, or anywhere really for that matter.
Raynedog00 hahahahahahahaha true
Get gap insurance
@@greyosu9247 That's pretty shitty advice. Pay more money monthly to insurance because you couldn't pay more downpayment so your already too-long monthly payments for a car not worth what you're paying off in case you crash it and can't afford food.
You shouldn't be in that situation to begin with.
Let me know what other questions I can answer about your exotic car buying goals. Have a great day!
Ed Bolian thanks Ed, always look forward to your videos!
How to identify a good mechanic?
Ed, we’ve seen all of your friends car stories but the one person we haven’t heard from is your wife! If Mrs Bolian would be up to sharing a story, we would all love to hear it. I’m sure she has one or two really good stories. Thanks!
What do you think a non lp clean Gated Murcielago with low miles is worth?
I make 5,000 a month and right now my bills total up to 2500 for everything. You think i can afford an exotic?
Update: I still do not have enough to buy an exotic car
Can’t even buy one in gta ;(
@Bob Marly they aren't
@@mohitme1234 😂😂😂😂
I’m just trying to stay in top of my bills
Back when I used to maintain McLaren F1’s I calculated that it cost at least a dollar every time you stepped on the clutch!
I always knew clutchless shifting would come in handy one day... the day I own a Mclaren f1
Shrewd negotiation is actually how I feed myself. Money is for chumps.
I heard someone say ask how much they want for it even if its not for sale or if they know anyone that has one for sale.
Shrewded Wheat, breakfast of champions and brought to you by this months sponsor ...
*puts gun to dealers head* yeah how much is the car now?
Quite useful. New title:
How to prevent non-car friends and family from saying “I told you so.”
Very important
This should've just been called "Why Ed Will Never Own a McLaren."
12c for 80 is looking pretty smart
BrazilBro is it though with potential repair costs?
@@nitro677racing just gonna have to repair it yourself. From my research there are a lot of home remedies for issue. The worst one is the cam phaser issue that will eventually need updating and tearing the head down
@@BrazilBro_ When it's $3k to replace the battery, that isn't very smart.
Borderline5440 at this point, a McLaren is actually a perfect car for a lroject where you DIY the whole thing. There’s a guy in instagram called rille347 who does exactly that to his 720S, going as far as to make his own front end to the thing.
I ASKED ED BOLIAN FOR ADVICE ON BUYING my civic SI and this dude responded! Fan for life. Respect from Canada
We should make an updated version based on current economic situations.
Ed, great video. Very useful. My first exotic was a 1997 NSX. Bought it at 27 years old, and my dad had to “co-sign” ... but I still have it today with 52k miles, all OEM/stock. Definitely worth it.
Sell it. You’ll get $110k
@@chrishayes7966 na the nsx is special
Why be rich when you could just *shrewdly negotiate*
I have gotten free tools so thats the most shrewd ive been.
Lmao
Five-finger discount
Like makin them an offer they can’t refuse
Ahahhaha gold
I just bought a 360 Modena using the Ed lowballing tactics. Flew across the country and drove it home. It’s a dream come true even if it’s a POS to the average Ferrari enthusiast 😅
Congrats! I love the 360 and if it's kinda rough that means you can drive it guilt free!
okcivicx thanks! High mileage (44k) and a little rough around the edges, the perfect guilt free Ferrari! Will try to make some videos on it here soon as it needs a lot of little odds and ends and I’ll also be doing the maintenance myself.
Good job man!! Who cares what other chumps think-you are living your dream man
I figure, "don't spend more than you can afford to lose," so I'm probably in the "not until I can buy it outright" camp.
and you will probaly never have it...screw going to the grave with regrets...there are responsible ways to have it withought buying outright
If you finance
@@daytonaguy3584 if you're going to the grave, then by definition you don't have regrets. Dead people don't have feelings. However, those you leave behind will be left with your poor decisions and debts. I sure hope with thinking like that you don't have a significant other/dependents.
@@brois841 dont really feel like engaging on this...think what you want
Don’t buy a lambo outright lol
I’ll never forget a guy telling me “for the amount you spend on all these cars you could have got a Lambo”. And he was right. Although I do enjoy driving a different shit box each day of the week.
ZR1 LT5 Chris shitboxes are fun because you do care what happens to them. Or care how they look
Liquidate and upgrade 👌
😂😂😂
It depends on person perspective too,some love to modify their car more than buy high performance car.For me I aiming for buying new Lamborghini and it definitely be permanent car in my garage because it's my dream car.
I agree 100% with the C2S logic most people don't look at the depreciation close enough long term.
I expected not to like this video, as i am more of a Dave Ramsey person, but I was pleasantly surprised.The key, from ed, is avoiding that loss of principle which is done by buying used. I think ramsey would approve.
I do not like the concept of financing a car. I have financed one car in my entire life and hated it so much that have never done it again. I have also had what most people would consider exotics my whole life. In my 20's I had a Porsche, a Ferrari and a Lotus at various times, and I had no real money. Each one was purchased "With needs" and after it was fixed and I had enjoyed it a while it was moved on for the next one. The Porsche replaced a Duetto, the Ferrari replaced a Fiat Dino (Which surprisingly the Fiat Dino is worth much more than a 308 now) and the Ferrari was replaced by a Lotus. Each had a car that financed it's purchase. I don't know how easy this would be to replicate as this was during the 80's and cars were simpler, but i do know that putting a clutch in a gallardo is not rocket science, and you can buy a Gallardo that needs a clutch for a lot less.
Ultimately what I got from this video is that you can play with exotics without going broke and if you are somewhat smart about it you may not make money but you can turn it into a zero sum game.
I know a few were mentioned in here but a video going over "entry level" exotics would be awesome.
Good idea
VINwiki yes, please!
I can already predict the first gen r8, gallardo and ferrari 360 being the main 3 people think of. Maybe a mclaren 12c but that ones iffy
snowren24 👀clean record clean credit score would be the first
bigmaxcc haha well no points (for now) and a 780 score.
I just forwarded this to my economics teacher with the subject: THIS IS WHAT YOU SHOULD HAVE BEEN TEACHING US!!!
So let us know what he responded!
@@blockbertus Same here. I'd like to hear what he/she said. the car world has changed significantly.
I hope that's some kind microeco teacher otherwise you're going to get roasted.
Yeah, but economics =/= personal finance.
Haha nice
Having Ed as my life coach on youtube costs me 12.99 a month. Worth every penny.
Ed, just wanted to let you know that I used your 'used vehicle buying tips' when I bought my daily driver 2018 Titan XD last month. Contrary to your belief, your advice IS applicable to non-exotic cars. I feel I managed a shrewd negotiation and bought the truck for $4K under asking, which may not seem like much, but it frees up that money for any equipment or aftermarket parts I want on it. Thanks for the great content and confidence to get what I want without getting worked over at a dealership!!!
being smart with your money applies to any situation tbh
I got into med school after finishing my undergrad and at the moment I’m doing my residency as a anaesthesiologist, my entire motivation comes from cars. Although I’m not from a poor household whatsoever, both my parents are medical professionals who make around 500k-600k per month together. My dream car has always been the original lp700 aventador. Hopefully once I finish my residency, I can buy my dream car.
This is really good advice. My '18 Acura NSX is pictured left. I've spent nothing on this car in my 1 1/2 years of ownership beyond the monthly payments, gas, and I do the maintenance myself which is a few hundred dollars.......That's exactly the way I planned it. I bought it brand new, with a warranty that I haven't had to use, and with Honda reliability, I'm pretty sure she'll be problem free for many years. As for depreciation, that only matters if you plan on selling the vehicle........I don't sweat depreciation. BTW traded in my Gen V Viper GTS for this....made $29K..on that....
Congrats! Love the NSX. Enjoy it
So you plan on keeping your NSX for??? I want one and I love the NSX but it really is a bad example for this strategy that Ed explains in the video. Probably the worst depreciating exotic after Maseratis. 2017/2018 examples can be found now for 115-130k
Happy for you. I also want to buy my first exotic car which is Lamborghini brand new because I want to spec it as I want.This car will permanent car for me since it's my dream car
Ed. Outstanding job. Seen people dig themselves into overwhelming debt because no one took the time time to explain this to them
Check the description for links to other videos of exotic car buying advice from Ed.
you mean when he created whole vinwiki to drive up price of Manual LP640 to sell at profit and use that money to buy another free of debt....best advise ever
We know it’s you Ed
video idea - how you evaluate a car you are considering purchasing to decide what you need to offer in order for the purchase to make sense.
There is this guy in my country who has a really common construction job and spends almost literally any penny he owns on his cars. Dude has owned a nearly endless list of exotic cars and currently drives a Lamborghini Murchielago. The guy really should have his own RUclips channel, but he does occasionally pop up in car vlogs and magazines.
Great video. I have stressed myself out a lot buying exotics and trying to keep them under 10% of my net worth. It always ended up being more like 25% which ultimately made me feel I wasn't making a "grown" up decision keeping them. Glad you made this makes me feel better about going over 10%.
Everything Ed just said.. i wasn't listening to purchase an exotic car.. i was listening to purchase a $15000-$30000 car and everything still applies and is still relevant. Ed is brilliant
6:45 I felt that :( I didnt have bearing failure, more the rod leaving the block failure. But what a car the M6 was while I had her.
Shit!!!
Try to look like you won the lottery 10 years ago LOL
You can enjoy a old car. If you are driving something to impress people around you, you're not a car guy
I enjoy driving older vehicles!
I don’t see myself ever owning anything made after 2006
At least you still look like you won the lottery.
That's so wrong. But so true. LMAO.
I don’t have a high priced exotic in mind. I’d like a gen 1 or 2 Viper and build it from there.
This is great Ed. Once someone understands finance, a whole new world of common sense opens up. How much does a car cost? Depreciation + finance costs + MRO (Mainenance, Repair, and Operation).
Ed: when can you afford your exotic car? Me who’s 13 who can’t even get a job : interesting...
It's closer than you think!
1. Dream 2. Write your dreams down 3. Work and save and make steps to make your dreams come true
There is nothing stopping you from achieving your goals.....
Bathroom Sign work hard hustle it be easy
Remember the 50% rule..
Better than dreaming of being tik tok famous.
Another Classic From Ed's Secret Lifestyle Nuggets:
"Travel Like You Won the Lottery Ten Years Ago".
Thanks Ed !
Ed’s talking I’m in!!!
I recently pulled the trigger on a used R35 GTR. It took me a long time to decide, and everything you mentioned in the video is genuine. The cost of ownership, depreciation, and other surprise costs were all things to consider before buying the car.
Two years later, how has it been? Any regrets? I’ve been wanting to pull the trigger on one for a long time now.
Ed: my first exotic car purchase was financed through the Japanese Mafia and they were shrewd negotiators.
*VinWiki opening plays*
That's the way to do it, I'm 50, I've been buying & selling cars since I was in high school, I currently have 17 in my shed, I own my house outright, I have 3 rental properties, all from my love for cars,
Wise words - this is pretty much the exact considerations I had before I bought my LP560. With regards to maintenance costs, try to find a car that’s had major necessary work done recently. In the case of my Gallardo, I found one that had a new clutch installed (one of the inevitable big expenses with these cars). It doesn’t add much to the sale price, but is worth hunting out in order to avoid paying the extortionate cost further down the line.
I bought an 06' porsche 997 911 a few years back, drove it for a couple years and sold it for the same price I bought it. No issues, only regular maintenance.
Great choice
I would ask Ed to convince my wife for me, but I’m also worried he’ll do more than that
Ed gives great advice for anyone wanting to buy any car... whether you are rich or poor. Debt ratio, income, maintenance, and up keep he provides sound advice.
Don't forget about insurance. I was eyeing my dream car and all the numbers were lining up, until I called the insurance companies.
Forreal. That's what people don't realize. Even if you have a good record, the state/city you live in can definitely play a huge factor in that.
@@lwdn3379 You are correct. We were told by multiple in a high risk area because of the number of accidents. So even if you have a good record, it might stop you from getting that dream car.
Good, clear insight. Many people have trouble seeing beyond a simple monthly payment. Your explanation may help some folks "raise their eyes" a little, and understand car ownership (exotic or otherwise) in a wider context. And dang you are easy to listen to!
I’ve heard people say you shouldn’t buy one unless it’s less than 10% of your net worth. If you're worth $10 million, then maybe spending $1 million on a car isn't insane, but if you're only worth $500K, it's probably not the best move.
Exactly. It's not just about the sticker price either. The maintenance, insurance, and depreciation can add up real fast. I've read that owning something like a Ferrari could cost you a few thousand dollars a year just to maintain
That’s why I feel like wealth management plays such a big role here. If you’re not balancing your investments with your lifestyle purchases, you might be setting yourself up for a shortfall later. You can’t put all your money into luxury and forget about long-term goals
Yeah, I agree. You have to ask yourself, 'Am I sacrificing my future for a car now?' Personally, I have a rule where I only buy toys-like cars or vacations-after I've hit certain milestones with my investments
That's smart. I think too many people get caught up in the flashy stuff without thinking about whether they’ve really secured their financial future. I know for me, I worked with my advisor to set up a plan where my investments generate enough returns before I spend on anything luxury
Same here. My advisor, Joseph Nick Cahill, always talks about balancing the fun stuff with the smart stuff.
It comes down to being responsible not just in the purchase and how it relates to one's finances, but also in how one drives this type of car. I never speed around town, but I've stretched my 911's legs in the hills once a week since I've owned it. Responsible freedom!
Now I just need a video on how to convince my wife that its a financially responsible decision!
Financially responsible and fun cars are not in the same conversation 😂 maybe an NSX though if you keep it stock.
I’d like to see a video from Ed’s wife on this subject.
If you need to convince your wife that it's a financially responsible decision, then chances are it's not ;)
Go to trade school
This is a great video to explain this. I've followed his strategy, but modified it to a bit more affordable cars. Started with an F80 M3 that was 3 years old (bought in 2018) and am now selling my M4 GTS for a 981 Cayman GTS and have built over $20k in equity in the vehicles I've gone through. There has been a hiccup or 2 along the way, but if you follow the rule of purchasing a car that depreciates less than 5% a year, you can be seriously considering true exotic cars within a span of 5-7years with a 40-50k income.
It's seriously amazing and I have spent less than 5k in 2 years to drive my literal dream cars.
Nothin like some VINwiki to start off the morning
Have a great day!
Its 17:20 rn 😂
I owned 4 cars as a 24 year old, I lost alot on my previous 15 Audi A6 when I got my c43 amg. Very nice cars but I should have just stayed in my 11 ford taraus with $25k in the bank and bought a old Porsche to have fun in. Still doing great but I've made a promise no new cars until I can buy my Lamborghini huracan and if the c43 shits itself then I'm trading it in on a 03-05 e500 or 12 Honda accord
What do you do brother?
damn 24...
Nice
24.What do you do?
For all the 15k V10 M5's I have saved on Facebook Marketplace, this answer was unintentionally extremely direct lol
Do rod bearings and vanos the day you buy it, and save for the SMG dying and you'll be fine
I still want a V10 M6!
Thanks Ed. As someone with a very humble background that now owns 2 Porsches and a Mercedes, I appreciate straight talk and your channel in general.
This series is gold
I have never had a car but when I will do it might as well be an exotic 😅
Bought my E-Class Coupe for 1900 bucks over 12 years ago, fixed it up and still love it to this day.
"Look like you won the lottery 10 years ago " 😂
My dad always told me if you can't afford to buy something 10x over don't buy it. It's crazy but I like it. When he bought his zr1 he saved over 1 million dollars to finally be able to buy the damn car!
Great to see another Ed story!
Patience is key. Wait for your "dream" car to near the bottom of its depreciation curve. Buy the nicest example you can afford, and enjoy driving it. I never want to buy a car im afraid of putting miles on. I like how ed says he looks like a powerball winner from 10 years ago haha
Been saving up 8 years I always have $700. Might buy a lambo
You can buy about 700 Lamborghini's..... Hot wheels
Love all the explanations and I couldn’t agree more. People need to treat buying a car ( or a home ) like a 401K. It’s an investment. It has to make financial sense. Buying new for a short term ownership makes very little sense. My wife and I never buy new. In 12 years we went from a crv to a Tiguan to an X6. Always at around 4 years old 40000 miles and at prices 50-60% below original price. It allows us to drive nice cars for less than 250-350$ a month and when we resale 2-4 years later to have a minimal depreciation hit. All of this makes for a very reasonable cost of ownership. The crv cost of ownership was 230$/month. The Tiguan SEL was 270$/month. The X6 so far is 400$/month after 32 months. We had some mechanical issue that needed attention but the forecast is about 350$/month after 48 months. Not bad for a pretty much all equipped 2015 X6 with currently 67000 miles. Also, for couples, never have more than one car loan at a time. Lastly never finance more than 50% of a used car.
When i heard Ed was telling a story I had to be early!
Thanks for being early!
@@EdBolian Well I'm in Australia so midnight isnt too bad! Thanks for posting early so I get to watch before bed!
Another factor to consider is Parts, My favorite is VW product. You know the parts are gonna be cheap and readily available...
I always open the hood and look at Things like alternator, PS pump, water pump location. How easy is it to replace when it goes bad...
my Favorite workability is Corvettes so Easy to work on so much space.
Anything with inline six has a lot of space to move.
Lotus Elise is a great car for this
An e60 is too
So happy I found this video. I can see everywhere on the internet giving financial advices about cars but none of them were truly car enthusiasts. Everyone sees a car like a status symbol and no more than that. To me, is the motivation of moving forward, the reason why I don't give up, the strength of belief and the ambition to succeed. You can't tell me to spend no more than 10% on a car because otherwise is iresponsabile
I like this. He gave alot of information and tips that he didn't have to.
Ed's last point is called "carrying cost". It's how most people buy/finance an exotic car, keep it for a year or two and then sell it for what they paid. The net cost of ownership is very low but the carrying cost is very high. This is a calculated risk.
THIS is the one I’ve been waiting for!
"...what is your vulnerability?" A very underrated variable in car buying. Great angle! 👍
Get a Lotus Elise for less than a Civic Type R, like I did.
Are they reliable ?
Great idea
Shh don't tell anyone. I'm saving up to buy one, and I hope they don't explode in price before I get there.
Get a lotus AND put a Type R motor in it!
@@jo1948 where i live cheapest lotus elise is 35k€ what in the....
Didn’t understand a single word Ed said once again, but you are a great speaker.
spend your money intelligently, if you don't know what that means then you're absolutely in NO position to be buying exotic cars
You are the most enjoyable guy on RUclips I mean that truly.... Freddie is a distant 2nd
Good to know this kind of information. It's not something that everyone thinks about. It's also something that you have to factor in when making a purchase. It doesn't have to be an exotic either. It could be a sports car or something that the lay-person that doesn't have a larger income can afford.
Since the hurricane decided to spare us I shall continue my morning routine of vinwiki and coffee love to hear the stories and it helps me be in a better mood for the rest of the day!!
For people my age (31), the depreciation factor is primo right now for all the cars that I wanted when I was 15. Ferrari 360, C5 Corvette, Porsche 996. All bottomed out right now.
my porcelain echoes with the whiskey flavored baritone that is Ed's voice as i clog-up the crapper again.
This deserves a million likes bro... I shit myself laughing
Great info and a conversation that no one but you Ed could have and say the word “responsibly “ and mean it. Thank you for the wisdom. Here’s to our super car aspirations.
Sees title
Dave Ramsey will like this one
in fact, you don't need one: uncomfortable seat, hard to get in/out, practically no room for anything, obstructed view, loud engine right in your ears.
I’ve always had about 100% of my net worth invested in cars at any given time...🤷♂️🤣
I've always heard the 10% rule. No toy should cost more than 10% what you have the in the bank.
If you're asking this question then you're probably not rich enough.
Good summation! The same applies to airplanes. I've not owned a supercar, but I've owned airplanes and this rundown was great. I'll add that it's wise to have a maintenance fund. Every month, stash some cash into a maintenance fund. If that big maintenance item is $15,000, amortise that amount of money over the expected time frame you estimate you will need to do that maintenance and fund the account.
I've always lived by the motto
"you can live in your car, you can't drive your house"
You obviously don't have a wife or kids or actually still live at home with mum and dad.
@@StealthX3000 can't drive those either
@@luclapierre7621 Lol
For me it was buying the car 100% cash while being able to afford the rest of life.
I have 5$ and a handshake, take it or leave it.
Take it
HOLD OUT YE ANDDD!
A few years ago i purchased a 2000 BMW 328ci and a 2003 Ford Escape XLT... The BMW has been the worst financial decision i have ever made and the Ford the Best Lol...
But...how rich do I have to be to buy a FL00DED exotic car?
RUclips rich
Don't buy em, rent them! No maintenance costs, no heavy burden on the wallet, and you can always rent the most current ones without having a depreciating paperweight sitting in your garage. If you're a business owner, write that rental off!
Honestly surprised MasterClass hasn’t contacted you yet
I bought a GT4 for $73,500. Drove it 4 months and sold it for $80k. If you buy the right cars you will be fine. Avoid Mclarens, V8 and V10 BMW, big body AMG cars, and Aston's with poor service history and you will be fine. A highly depreciated Gran Turismo, GTR, VIPER, E36 or E46 M3, older 911's you will always be fine.
I by no means have the income to even finance an exotic but by God im gonna research financing for these cars for the rest of the month😂😂
Timing is all about your personal situation and goals with a car purchase. If your goal is to drive an exotic on occasion, save yourself a ton of headaches and rent or lease one short term. If you are thinking about an exotic as a daily, again rent or lease one and make sure it is really something you want to live with. Nice thing about the rental/short term lease is you can usually avoid the cost of major repairs.
If you must own an exotic, it shouldn't be your only car and you shouldn't finance depreciation of any type. (Depreciation can be really ugly for some makes and models and financing them is just paying a premium for a loss). Sure you can get a warranty on newer models, but cars in the shop for warranty work do not give you any joy.
To me, the reason to buy such cars is for the enjoyment they provide. If the idea of writing a five figure check for repairs bothers you in anyway, the odds are that if you are playing with older exotics, you will lose the joy which you sought. Once you get to six-figure price points, you are in a realm where being able to afford the payment is the exact mentality that will end up costing you a lot more than you can handle. If you desire to maintain good credit for any reason, think long and hard before committing to financing a exotic car - the terms they allow are risky and the exit provisions are not favorable. Those 7 year loans might make sense if the value is going up, but if the transmission takes a dump after 5 years and you are out of warranty, the misery of the next 24 months will be what you remember.
It is possible to buy an exotic car, but you just might have to live with your parents rent free for the next 15 plus years though.
I think it boils down to what are your priorities in life? Like for us car people, our boundaries of "responsible" are different because cars fullfill us in a special way, so we don't mind allocating more income towards them