A San Francisco man wants Dave Ramsey to talk him out of buying a $250K Lamborghini — makes $300K/year, net worth of $3.66 million. Here’s the money guru’s surprising answer

After years of working hard and some “nicely-timed company acquisitions” he says he’s managed to boost his annual salary to $300,000, not including a 30% bonus, and his net worth to $3.66 million.

With these impressive numbers, Dave Ramsey was open to the idea.

“You can afford the car if you want it,” he told Leon. However, co-host Ken Coleman was much less enthusiastic, warning against the purchase and consequent steep car payments.

Coleman and Ramsey’s different perspectives shed light on the struggle of deciding whether it ever makes sense to knowingly indulge in frivolous spending.

Different perspectives

Although he’s a millionaire, Leon’s dream car is still an indulgence. An Experian Automotive study covered by Ramsey Solutions found that 61% of millionaires actually drive average cars like Hondas, Toyotas and Fords. So it seems many wealthy Americans choose to steer clear of supercars.

Ramsey explains that a good rule of thumb is that vehicles should not cost more than 50% of your annual income. Leon’s $250,000 purchase would violate this rule. Nevertheless, Ramsey understands his temptation, given his own passion for luxury cars.

“I got a 1960 Corvette,” he confessed.

Dreaming about luxury cars is not uncommon. A Carvana survey found that 12% of drivers dream about getting behind the wheel of an Aston Martin DB5 from “James Bond,” while another 11% would love to take the Ford Mustang GT 390 from “Bullitt” for a spin.

Respondents also showed a preference for dream cars that have advanced technology (26%) and performance capabilities (25%) over other characteristics like fuel efficiency and comfort (20%). But that’s what can make it more of a dream than a functional lifestyle match.

There’s another rule of thumb Ramsey suggests using when considering large purchases.

“If I took this money and set fire to it, does my life change? If the answer’s yes, then it’s too expensive,” he tells Leon. “I think you can lose 8% of your net worth and probably not miss it.”

Coleman, however, disagrees. Given the Lambo’s hefty price tag, exposure to depreciation and Leon’s outstanding mortgage of $739,000, he believes the dream car could turn into a nightmare.

“In this current situation, I would say no,” he said. “I wouldn’t do it, personally.”

His concerns reflect the fact that many car enthusiasts can regret their luxury purchases.