In the world of personal finance, buying an exotic car is usually the type of behavior that is frowned upon. New cars are significantly more expensive than used cars and 9/10 they will be less valuable when you go to sell them. Exotic cars, in particular, are incredibly expensive and still have basically the same function as a used car (getting you from point A to point B).
However, what if there was a way that you could buy an exotic car without the guilt or financial burden? What if there was a way that you could buy a nice car and actually make money from it at the same time?
This article will examine how you can do exactly that.
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Assets Vs. Liabilities
Believe it or not, there are two types of possessions that a person can buy.
You can spend money on something that will only ever decrease in value, which is called a liability.
A few examples of purchases that would be considered liabilities are food, new clothes, new shoes, toiletries, rent, etc. You pay money for them and for the most part, there is no chance that they will ever be worth more than you paid for them.
You can spend money on something that has the ability to produce money or increase in value which is called an asset.
A few examples of assets are things like stocks, gold, artwork, or real estate. You might spend money now to buy a stock but a year later, that stock could be worth more than you originally paid for it. It also has the potential to produce money for you in the form of dividends.
When it comes to spending, the overwhelming majority of people spend all of their money on liabilities. When their paycheck comes it gets spent on rent, bills, food, clothes, fun, and maybe a little bit of it is saved.
However, a small group of people focused their attention on buying things that will increase in value and ultimately end up putting more money in their pockets because of it.
This brings us back to exotic cars...
Is a car an asset or a liability?
So, which category does a car fall into? On one hand, you pay money for it upfront and it’s a pretty well-known fact that new cars get immediately less valuable the second you drive them off the lot since they are now considered “used”. You can’t buy a new car and sell it back the next day for the same amount that you paid for it (let alone more than you paid). This makes it seem like a liability.
In some cases, people might pay more money for vintage or classic cars. But there is no way of telling if a car will turn into a valuable classic car when you are buying it new. This method also requires holding and maintaining the car for 30+ years until it’s old enough to be considered a classic.
However, what if there was a new option that involved buying a brand new exotic car, like a Lamborghini or a Ferrari and instantly turning it from a liability into an asset?
Introducing: MPH Club
MPH Club is an exotic car rental service located in Miami, Florida. Miami is one of the most popular party destinations for celebrities and wealthy people, all looking to take on the city in style. For this reason, it’s one of the best cities to operate an exotic car rental service.
More importantly, MPH Club recently announced a partnership program where you can lend your exotic car to MPH Club when you’re not using it and they will rent it out on your behalf. The process works like this:
You lend your car to MPH Club.
MPH Club holds it for you and rents it out to their customers.
You and MPH Club split the profit.
This is good for MPH Club because they can bolster their offerings to potential clients and good for you because you’ll earn cash where you wouldn’t normally.
If you don’t already own an exotic car, that doesn’t mean that you’re left out. If that’s the case, you can still use the same strategy that is used in real estate. Many people will buy a secondary property and lease it out to a tenant. The tenant then pays rent on the property and the property owner uses those rent payments to help repay the mortgage. By being a little creative, the property owner now gets a rent payment and the mortgage paid for. All they had to do was find the property and buy it.
The same thing could work for exotic cars by leveraging the MPH Club partnership program. You take out a loan to buy an exotic car and then use the partnership program to rent out the car when you’re not using it. The money that comes in from renting out the car is then used to cover the monthly car payment. Now, you’ve successfully turned an exotic car from a liability into an asset.
We hope that you’ve found this article valuable in understanding how owning an exotic car can actually make you money!