By Dr. Jim Dahle, WCI FounderThere are five money activities to master in your life:
- Earning
- Saving
- Investing
- Spending
- Giving
This post is all about spending. As part of our 25th anniversary celebration, I rented a supercar (as a surprise to Katie) for us to tool around in for a couple of days as we went from event to event. Like with most new experiences in life, there were a few lessons learned.
Supercars Are Fun
For you “car people,” I rented a McLaren MP4-12C. I think it was a 2014. It had 37,000 miles on it. It has a top speed of 207 mph and a 0-60 time of 3.2 seconds. The engine sits behind you, and the car has a very nice rumble to it. As the RPMs climb, you are thrown back into your seat. The engine roars, and while I never got it anywhere near 200 mph, you get above 100 mph very quickly. It sits very low to the ground and tracks incredibly well around corners. It’s just a lot of fun to drive and show off.
Teslas Are Faster
The most depressing thing is that you can spend hundreds of thousands (or even millions) on a supercar, and your doctor’s Tesla is still faster off the line. The torque inherent in an electric car eliminates the hesitation you get with a gas engine. The Tesla S Plaid goes 0-60 in under two seconds and costs a whole lot less than a McLaren. But it doesn’t rumble, and it is now much too common to impress anyone.
More information here:
Why Tesla Owning Doctors Hate Me
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Supercars Are Terribly Impractical
The gas tank is way too small, even if it might be huge compared to the trunk (in the front of a McLaren). Just don’t plan on bringing more stuff than about a carry-on and a half if you’re taking a McLaren on a trip. You can only carry two people; you sit so low to the ground you think you might never get up; and if you spend more than an hour in it, your back might not think very highly of you. I much prefer my F-250 (5.5 seconds 0-60) for a road trip, and it certainly carries and pulls a whole lot more!
On our way to the Kenny Chesney concert…there’s barely room in this car for cowboy hats
You Can’t Take It with You
While supercars are expensive, the point of money isn’t just to accumulate. It is also to pay for experiences you would like to have in your life. You’re supposed to be using all that money to improve your life, help others, and have a little fun. On my scale of 0-10 of expensive stuff you can do for thrills, I give driving a McLaren a solid 8.5. Heli-skiing gets a 9.5, sky-diving gets only an 8, and a trip to Europe gets about a 9.
More information here:
Phase of Life Spending
How Much This FI Physician Family Actually Spends in a Year
Celebrate!
There aren’t very many days left in our lives more important than a 25th anniversary. We’re also now quite wealthy, given that we’ve been working for six years since we hit financial independence. We can certainly afford to drive a McLaren on a special occasion. So, why not? Make sure you celebrate important days in your life as well as financial milestones that you hit. We’ve missed out on celebrating way too many of those. I don’t want to miss any more.
Rent Don’t Buy
The old adage is, “If it flies, floats, or flirts, rent don’t buy.” While there is some wisdom there, I certainly haven’t followed that guideline since I am both married and the owner of numerous boats (ranging from a packraft to 1/48th of an 80-foot houseboat). A supercar certainly fits into the “rent don’t buy” category for me, though. As fun as this car was for a couple of days, there’s no way I want to own it long-term. Too much storage, maintenance cost, and hassle for such an impractical toy.
The car’s original MSRP back in 2014 was $219,000, but it can probably be bought for something like $100,000 now (and that’s with only 37,000 miles on it). Those are all big numbers. Renting it wasn’t cheap, but it was a whole lot cheaper than buying it. In my case, the total rental cost was a little under $2,000 for a couple of days. In exchange for that, we got to drive it everywhere we went, the kids each got to drive it around the block, and a few select friends (all “car guys”) got to take it for a short spin. We drove it 200 miles total. If we wanted to drive it more than that, it would have cost $10 a mile.
More information here:
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You Are Not What You Drive
I often tell WCIers that you aren’t what you drive. Now, I’m not really a car guy, so that’s easy for me to say. But I’m exactly the same person, whether I’m driving a McLaren or the beater Civic our daughter drives. However, even I was surprised by how many people I ran into who do not understand this principle. I occasionally get a compliment on my new truck, but that was nothing compared to all the people who stared at or complimented us on this McLaren over two days. One kid pushing grocery carts even asked me what I did for a living, like that scene out of The Pursuit of Happyness.
If you want that sort of attention, if that really feeds your ego (and I admit, it’s a little fun), renting or buying a supercar is a great way to get it.
Physicians train for years to learn about medicine. But financial literacy was not part of the curriculum. That’s where The White Coat Investor comes in—by offering tons of entry-level information to get you started on the right path. We have a FREE email series called WCI 101 that reviews the basics in bite-sized chunks. You can check out our Start Here page to learn all about personal finance for doctors. And you can peruse our Frequently Asked Questions to get even more info. It’s easy to feel overwhelmed when learning about finance. WCI is here to help!
What do you think? Ever driven a supercar? Which one? Did you rent or buy? Was it worth it?