Silicon Valley Millionaire Asks Dave Ramsey If He Should Buy A $250,000 Lamborghini—Here's What 'Car Nut' Ramsey Always Asks Himself

A Silicon Valley millionaire recently called "The Ramsey Show" with a question: should he buy a $250,000 Lamborghini Huracán? The 39-year-old has a net worth of $3.66 million, built through hard work and successful company acquisitions. Earning $300,000 a year with a 30% bonus, he can afford the car, but wanted Dave Ramsey's take.

Ramsey didn't immediately dismiss the idea but instead posed some key considerations before making such a big purchase.

Ramsey's Rule for Big Purchases

Ramsey, a self-proclaimed “car nut,” follows a general rule for vehicle purchases. As he says, “You do not want to own all the things you have with motors or wheels to be more than about half your annual income.”

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In this case, the Lamborghini exceeds that threshold, though Ramsey noted it's not a strict rule. Instead, he introduced what he calls the “burn the money” test.

The “Burn The Money” Test

Ramsey explained to the caller what he and his wife Sharon do in case something “feels kind of like a weird large purchase.” They ask themselves, “If I took this much money and set fire to it, does my life change?”

If the answer is yes, then it's too expensive. Given the caller's net worth, Ramsey acknowledged that losing $250,000 wouldn't be catastrophic. However, he pointed out that luxury cars depreciate quickly.

“The 250 is going to be worth 150 in 20 minutes. You know that, right? We already established 450 turned into 250.” Even though the car had already depreciated significantly, its value would continue to drop.

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Ramsey's biggest hesitation came from the caller's mortgage—$739,000 at a 6.74% interest rate. He strongly advised clearing that debt first. “Before we buy toys, we grow up and pay off the mortgage.” The caller had enough in his brokerage account to pay off his house and still afford the car while maintaining his net worth.

Who Are You Buying the Car For?

And lastly, Ramsey also asks himself this: “If no one ever sees this car and only I see it and enjoy it, do I still want it?” If the answer is yes, then the purchase might be justified. If it's about impressing others, that's a red flag. The caller agreed. 

So, is a $250,000 Lamborghini a bad idea? Not necessarily. But as Ramsey suggests, make sure you're not making the purchase at the expense of financial stability.

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