I want to buy an exotic vehicle in the price range of $xxx,xxx, and I need some help determining what's the highest I should aim for without overspending based on my financial situation.

I am 24 years old. My net worth is currently about $1,300,000 in cash asset, plus a network of businesses which I own that can be sold for around the mid $x,xxx,xxx range.

I am completely debt-free. I do not have any wife/kids/dependants that I have to take care of, but I do support all of my parents' bills since they are low income factory workers.

My income is not constant, but rather it varies wildly. I can earn as much as a few hundred thousand dollars more in one month than I do in another month, and there's no way of telling how much I will make the next month. The lowest I can make is around $50,000/month if everything that can go wrong does go wrong (hasn't happened yet), and the highest is probably $300,000/month if everything that can go right does go right (hasn't happened yet either). To be safe, I can say that the average is at least $100,000 monthly.

I am very cautious about spending, and I never want to spend beyond what I can afford. I've been driving a $4,000 car for the last 5 years as I wait until the right time to go all-out on an exotic vehicle.

I do not currently own a house that I live in, and I plan to buy a house for myself at the same time as I buy a new car. The house will set me back around $300,000 (but I plan to finance it over 15 years or so, for tax purposes)

Note that although I will finance the house, I will pay for any car that I buy in full upfront.

Taking into consideration my income, assets, age (I do have the potential for many more years of additional income down the road), the future house purchase that will set me back around $300,000 (I will only pay a small portion on the house, and finance it over the next 15 years), and not just the cost of an exotic vehicle but also the cost to maintain it, what would you say is the highest I should aim for when buying an exotic car without doubting that I may be spending too much?

I would love to know what line of business are you in

You are the only one who can tell if you are spending too much on the car or not. Keep in mind that a car is rapidly depreciating asset and a car in the $xxx,xxx price range will most likely be very expensive maintenance and insurance wise.

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Never spend your money before you have it. -- Thomas Jefferson

Why not just buy a plane. Obviously, you can buy any car you want. Question is, what do you want it for?

"I do not currently own a house that I live in, and I plan to buy a house for myself at the same time as I buy a new car. The house will set me back around $300,000 (but I plan to finance it over 15 years or so, for tax purposes)"

Pay cash for the house, if you want it paid for. Choosing to finance the house for tax purposes is the same as spending $1 to save 50 cents. Mortgage interest tax deduction benefits on principal residences is a fairy tale.

Pay as much for the car as you are willing to lose. Cars like your object car are fad items. Owners are willing to pay what they are willing to pay. Today your car may sell for $100k, but in six months it might be $80k or $120k. I am not concerned about depreciation with this purchase. Those kinds of cars have values independent of the mainstream.

Spend what you want and see what happens. Remember, the moral of most stories is "don't do that."

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I was thinking that instead of spending $300K right away, it might be better to invest a large portion of that money so that it will grow at around the same rate as the interest rate that is charged through financing. Then, it will be helpful for tax. What are the flaws that you see to this plan?

At the age of 24, someday you will look back and wonder why in the heck did I spend that much money on a car. A car is only a method of transportaion to get from point A to point B.

Final answer? A Honda Fit.

Regards, Robert

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By your questions, I see that you need a financial advisor. Find one in your area who is fee based. Before you spend a penny on a bag of M&M's, get a foundation of financial information begun. Further, you need to know where you are going with your money so that you can spend and invest accordingly.

You mentioned that you wanted to invest the money not spent on the purchase of your home in a manner that would "grow at around the same rate as the interest rate that is charged through financing." Share this with your advisor.

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The flaw is, that the grass doesn't feel as good as the grass in the yard of a fully payed for home. Why play silly financial games? Pay cash for your home and love it, then go pay cash for your silly car and love it too. You will still have alot of money and income to do nothing but invest with.

Def. agree with you 100%...I just wish I had some extra money stashed away that I can use cash all the time

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New graduate with an emphasis in debt counseling.