I Sold My Investment Properties—What Do I Need to Know Before Buying an Expensive Car?

Once you reach a certain level of wealth, you may be inclined to treat yourself to different luxuries. That could mean taking flying first class when you go on vacation, hiring a personal chef, or buying an expensive car.

In this Reddit post, we have someone who’s started unloading their investment properties and is sitting on a big pile of money. Now, they’re looking to treat themself to a fancy car with a budget of up to $500,000.

They admit they don’t know much about cars but enjoy driving them. And interestingly, they’re not worried about whether they can afford a fancy car — they’re worried about being taken seriously at a high-end car dealership.

It raises an interesting point. But the poster probably doesn’t have much to worry about.

It’s a matter of doing your research and how you present yourself

The poster here is wondering if the process of buying an expensive car is the same as buying a typical one. They’re concerned that if they walk in and ask to test drive something high-end, they’ll be told to take a hike. But they may not have problems if they do a couple of things right.

First, they should research high-end cars — both to come off as polished and also to know what they’re getting into. Secondly, they should come equipped with proof that they have the finances to support a high-end vehicle purchase.

One thing the poster has going for them is that they’re likely not looking to finance the car, since they have money from the sale of their investment properties. So they shouldn’t have to worry about applying or qualifying for a loan. If they show up looking presentable, there’s no reason for a dealership to turn them away.

Think twice before sinking tons of money into a car

It’s one thing to buy an expensive home that might appreciate in value over time. But buying an expensive car is a different story.

Cars are the type of asset that tend to lose value over time. In fact, they lose value the minute you drive them off the lot.

So if you’re thinking of buying a high-end car like the poster here is, you may want to reconsider and spend your money elsewhere. However, if you’re very well off and a really nice car will bring you happiness, then you deserve to have it.

What the poster here may want to do is research their options so they don’t end up overspending. They have a super-high budget of $500,000, but they may find that they can get everything they want out of a fancy car at the $150,000 or $200,000 price point. If that’s the case, why go above that?

Also, the poster says they have no experience with very high-end cars. So what they may want to do first, if possible, is lease one. That way, they get a sense of things before making a commitment.

All told, the poster here has plenty of options for buying a fancy car. Whether they should is a different story, but that’s for them to decide.

If they have a financial advisor, it’s probably a good question to ask. And if you’re in a similar boat where you’re contemplating a very large purchase, you may want to run it by a financial professional to ensure you’re not making a mistake.

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