When Lambo?

Historically, Lamborghinis have always stood for new money. It’s been a symbol for excess and unreasonable wealth, because nobody needs a Lamborghini.

No thanks to the onset of crypto currency millionaires publicly spending their bitcoin on Lamborghinis, which peaked in price at the end of 2017, the carmaker has become synonymous with new crypto-generated money. “When Lambo?” has since become the shorthand for financial success.

No, this is not a Lambo

We Don’t Buy Things with Money, We Buy Them with Hours from our Life

The cheapest and most practical Lamborghini for a family is the Lamborghini Urus. It retails at $798,000 (excluding COE). It will take me 13.3 years to buy one at my current salary. If I were looking at used cars, a second-hand Lamborghini Gallardo LP550-2 will set me back $218,8000 or 3.6 years. The assumption is that every single dollar goes to saving up for this ride.

Number of months to purchase against compounding returns per annum (All in)

Lamborghini1%2%3%4%5%
Urus150142135128123
Gallardo LP550-24343424141

At a consistent 5% p.a. compounding investment returns, it will take me 123 months (10.3 years) for the Urus and 41 months (3.4 years) for the Gallardo.

Number of months to purchase against compounding returns per annum (Minus expenses)

Lamborghini1%2%3%4%5%
Urus241221204191179
Gallardo LP550-27169676664

Practically, I still need to eat and pay my bills. Assuming after deduction of expenses and at a consistent 5% p.a. compounding investment returns, it will take me 179 months (14.9 years) for the Urus and 64 months (5.3 years) for the Gallardo.

What if I considered a car loan as a financing option? MAS regulations state that a borrower can borrow based on the car’s OMW,

Open Market Value (OMV)Maximum amount borrowable
Up to $20,00070% of purchase or valuation price
More than $20,00060% of purchase or valuation price

Which means if I were to borrow the maximum loan amount, for a 7 years-loan at 2.78%,

LamborghiniDownpaymentLoanMonthly installment
Urus$319,200$478,800$6,809
Gallardo LP550-2$87,520$131,280$1,867

The above has not included COE, road tax, insurance, petrol, maintenance, season parking, ERP etc. I have inquired with the dealers, the Urus would have become a classic and the Gallardo scrapped by the time I saved up for either.

Other supercar rentals in Singapore range from S$1,500 for four hours in a Lamborghini Gallardo, to S$2,800 per day for a Ferrari F430 Spider. Apart from daily rentals (the minimum period), other short-term (weekly or monthly) and long-term (yearly) options, such as S$8,888 per month on a one-year lease of a Ferrari.

There was an 2016 article in the Straits Times that you could rent a supercar from $888 dollars a day. Prices might have risen from then, but the rates are roughly there. How often would you actually drive a supercar even if you had owned it? Rental might seem more like a plausible option as COE, road tax, insurance and maintenance would have already been factored in the rental rate which makes it stress-free. The rent fee as of current however equates to my monthly investment amount and could be put to more use.

You can keep your car, and I shall keep my cash. So for you readers, how about you? When Lambo?

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