Can You Afford to Own a Lamborghini?

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  • The average American makes $51,000 and takes home $39,000
  • A new Lamborghini cost $46,500 per year
  • Exotic vehicle insurance cost between $5,000 to $17,533 per year
  • Monthly loan payment for a $203,000 new Lamborghini is $2,500 

Lamborghini is a Status Symbol but Not a Practical Car 

Ever wanted to buy a Lamborghini? Looking to surprise the wife with a joy ride down the neighborhood in a European sports car? I wanted to ask that same question: can the average person afford a Lamborghini on the median American salary?

Like Ferrari, Lamborghini is a status symbol very few people can ever afford. But can the average American making $51,000 per year ever afford one? And how much does it cost you each year?

For starters, Lambos are not everyday cars. You use them for special occasions like an office event, your presidential inauguration, or to impress your girlfriend — all very good reasons. Next, you buy Lambos for the attention and the 2.9 seconds 0 to 60 rush — you are now Batman.

Lamborghini has been used by Hollywood time and time again to show wealth and prosperity. But will you be able to afford one on the average American’s salary in 2019?

Normal Salary in America 

In 2019, the median per capita income per person is $51,000. In Los Angeles, you would take home exactly $39,416 after taxes and deductions. That is to say, the government takes home $7,172 in federal taxes and $4,412 in FICA and state insurance taxes. When you make $51,000 in the United States, you are making $39,416.

Choosing A Lambo to Buy

For our example, we picked the cheapest still-available model to test our question– the 2019 Lamborghini Huracan. The car will cost us $203,000 for the base model and carries a 3-year unlimited mile warranty. Even as a base model, this car comes with a top speed of over 202 mph, achievable in only 11.9 seconds. 

How to Afford Our Lambo

There is no way an average person can buy this vehicle with only cash unless he or she sells their house, so instead, we can finance our vehicle. We can expect to pay $2,500 each month for 96 months at 4.21%, which is the most common borrowing rate.

Because we borrowed money with interest, we can expect to pay $230,000 in total because of the interest accrued on our loan. You can learn more about how to steal the money back from banks in this article. If you are forced to loan that much money, you probably should not buy a Lambo in the first place, but we will ignore that for now.

How Are We Going to Estimate Cost?

I researched the internet for cost on Lambos and found websites and forums that helped answer common cost questions. But since our new 2019 Lamborghini is still too new to find any specific information, we just have to estimate the total cost from past cost data posted by Huracan owners

Yearly Cost:

Brake Pads$2,500
Brake Discs$5,000
Insurance$5,000
Loan Payment$30,000
Gas$2,000
Service$2,000
Total $46,500

Insurance Can Cost $17,533

First off, insurance on a Lambo is 3 times the normal cost of insurance! This insurance is a special type reserved only for exotic vehicles. You actually can’t buy normal insurance for this kind of car. The exotic vehicle insurance is costly because exotic car drivers are more likely to get into a crash. If you were a 19-year-old driver who is signing up for Lambo insurance, you can expect to pay $17,533. On the other hand, a Honda Civics’ insurance cost $2,406 per year.

Equipment Brakes Down Fast

Second, brake systems cost a ton on Lambos because of the sheer power generated from its engine. The quick acceleration and top speed add much more damage to the brake systems, and you need to replace them often.

Lambo owners often replace brake disks yearly and brake pads every 10,000 miles. Similarly, tires wear out quickly, depending on your driving style, you can expect to replace it each year. Lastly, tires also cost $300 per wheel – just to add insult to injury!

You Get 10 Miles Per Gallon

Third, Lambos are expensive to fuel. Lambos get 10 miles per gallon, if lucky. So if you drive the car for 5,000 miles per year, you will pay $2,000 in gas! Moreover, the car only takes premium fuel and at a gas price of $4.00 – I am not surprised at the total cost. More specifically your Lambo should only take 93 octanes or higher.

Loans Are Just Wrong

Finally, our loan cost us $2,500 per month. At the end of our loan, we end up paying $203,000 on that actual loan and $36,400 just on the interest! This is the cost of borrowing.

In Summary

You can expect to pay $46,500 each year for your Lamborghini. In conclusion, there is just no way anyone taking home $39,000 can afford this car and survive. As a result, the lesson here is do not buy a Lamborghini. Even if you could afford one –- don’t do it –- it’s not worth $46,500 each year.

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