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
I Just Bought a Tesla (and This Is NOT an April Fool’s Joke)
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:
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:
It’s a Lifestyle, Not a Vacation
How to Add Adventure to Your Life
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?
Great to see you and Katie enjoying a McLaren!
While super cars seem incompatible with the live as a resident mantra, for car people (and for car doctors) who are far enough in their wealth accumulation, they are a must try and maybe a must have. I’m not sure on the depreciation and the costs to operate that McLaren (I would guess they are not super favorable) however Porsche 911 can provide similar fun for likely less money, with no depreciation and even appreciation if bought smart.
A cabriolet can add an extra element of fun for the whole family, as 2 kids or very tiny adults can ride in the back. A similar year 911 to the McLaren is probably already depreciated to the nadir and yet it would feel modern enough, powerful enough and of course, lots of fun. The insurance can also be cheap if it’s a base model Carrera or close to base, the only thing that costs an arm and a leg is the maintenance and of course the repairs, however they are surprisingly reliable.
Not even close to a must have for us, but it was fun for a couple of days. We do like to try lots of things though.
Did this get released on the wrong day? It’s not April 1.
You must be thinking of that Tesla post from a few years ago. Still don’t own a Tesla, but probably more likely to buy a Tesla than a Mclaren.
Teslas are the safest cars on the planet by a large margin. With 43,000 deaths on US roads and 2M serious injuries annually, I don’t understand the risk benefit calculation here.
Aside from the fact that used teslas are extremely prudently priced (2024 Model 3 sub $30k). They perform extremely well. Have batteries that on average last 205,000 miles. Low maintenance costs.
A supercharger network wide and with 99.95% uptime; the ability to charge at home and leave each morning with a full tank.
Full self driving that reliably drives door-to-door (including NYC last weekend like an expert; zero disengagements).
Cannot understand the anti Tesla mindset.
Especially from
Docs who see MVC deaths on a regular basis. These risks are very real. We all know someone who has died in an mvc.
This is simply a superior piece of technology. It’s just not even close.
This links to Teslas impact report (try finding one from any other car company).
Objective data including safety.
https://www.tesla.com/impact
Long and short versions at that site.
Thanks for sharing. I mostly just tease Tesla fanboys because it is such a common car among docs. I wouldn’t be surprised to own a Tesla at some point.
My understanding of the Tesla safety data is that it is mixed. Probably because of the fact that Teslas are fast and people are people.
sounds like a fun thing to do. I do hope you didn’t tell the grocery cart person the truth (doc or blogger or youube star) because then you’ll just feed into the false narrative that the odds are with that young guy that one of those paths is likely to work for him/her
I don’t actually recall what I told him to be honest. It’s been a while. We celebrated our 26th anniversary before this post ever ran.
Please tell us about the insurance part of this rental. I believe my Chase Sapphire Reserve specifically excludes exotic cars.
I think it came with insurance for that price.
Great post! Thanks for writing it. I have had a long-time penchant for quick cars and now that I am in the early stage of retirement, I plan to go on a “day tour” in Northern California where you can drive or ride along with a pro driver in a few different supercars of your choice for an afternoon.
Hmm—Jim previously gave me hell for enjoying commuting with my new 380 hp sports sedan! ‘‘It’s generally a bad idea to be getting an “adrenaline rush” while driving on roads with other drivers. So I hope that isn’t actually happening every day, even if you do enjoy driving the car!‘ there’s all types of vehicle enjoyment—my relative put in a solar array that powers his house and a Ford Lightening EV that can power his espresso machine on car camping trips and makes 0 to 60 in 3.8 seconds.
I don’t know that I give anyone “hell” for their car, but I do often point out that one reason many Americans aren’t millionaires is sitting in their driveway.
If electric trucks had better towing range I’d consider one.
Well, you have redeemed yourself (in my eyes) a bit. You see, I am “kinda” a car guy (relatively speaking-I read Car & Driver) and you’ve always espoused frugality (appropriately so). While spending 2-3x the cost of our first house for a car was and is not part of my financial plan, I did order a new Porsche several years ago (the least expensive model and careful with the options) that cost less than most of the F150 that my partners drove (and most certainly less than a F250!). Once all the obligations are satisfied and funded, I support doing something for you, your family and or others. So good on you for the experience. (I’ve also attended a couple of driving schools to scratch the itch at a fraction of the cost of ownership).
Sounds like fun! And you’re right, a nice truck can be pretty expensive.
Was it a business expense so tax deductible or paid for by the company since you made a blog post? If so maybe the true cost is less than $2k. Sounds like a fun experience and thanks for sharing.
I’d nominate for the next spending article that you try flying privately. 🙂
That’s a good point. Speaking of which, Jim, I think WCI forgot to reimburse me for writing this column. https://www.whitecoatinvestor.com/taylor-swift-doctors-joy/
Nope, didn’t forget.
We didn’t even try to write this one off. I don’t think just writing a blog post about the experience quite makes it a business expense. In the words of the IRS, it’s supposed to be “ordinary and necessary” to deduct it. Not sure I can say a super car is “ordinary and necessary” to be a doc or a financial blogger.
https://www.irs.gov/pub/irs-prior/p535–2022.pdf
Thanks for an entertaining post, Dr. Dahle. I’ve been looking forward to this post since February! I’m keeping this idea of renting a supercar in the back of my mind to someday surprise my frugal husband, when we are in on our “spending” phase of life, or maybe our 25th anniversary would be a good excuse too?
Back in the day, when you were driving your “$1850 No A/C car” did you ever imagine you would blow around $2000 to rent a McLaren for a couple days?! Look at you, making great progress in spending money! Do you still meet criteria to call yourself a cheapskate?
I’m also wondering, if anything is a 10/10 on your “expensive stuff you can do for thrills” scale? You know, to help us fellow recovering cheapskates learn how to spend $. 🙂
That is a pretty funny contrast between that Mazda 626 and the super car. 2 days vs 4 years of use.
Maybe I’m not a cheapskate anymore. I mean, I even paid for the car and didn’t make Katie do it. And the car wasn’t even the most expensive part of those two days.
I’ll keep looking for that 10/10 though.
I’m trying to remember what happened in February that made you wait for this post. If you are that good at remembering offhand comments you can start anticipating a NetJets post that I have no idea when will be published.
Loved your supercar adventure! Such a fun way to celebrate 25 years. The lessons you shared—especially on budgeting for experiences over things—really resonate. Memories > materialism!
This is a great post about celebrating an important anniversary. It’s really not about cars.
Well, it’s a little about cars. 🙂
“Flies, floats, or flirts” Yeah…………that’s not how that quote goes lol. Nice family friendly edit there
I’ve definitely heard it both ways, but this is a family friendly website.
This was awesome Jim! did reading “Die With Zero” have anything to do with this bawler move?
The ideas in the book have certainly had an impact. The book has some issues (mentioned in an upcoming post) but I still think it’s the best book out there for people like many WCIers who are wealthy but still have trouble spending.