Personal Finance

I'm a self-made entrepreneur with a $4.8 million net worth and I want to splurge $300k on a car - will I regret this?

Christy Bieber

Published: January 30, 2025 4:47 pm

Should you buy a $300K car if you have $4.8 million? This is a question a Reddit user posted recently.

The Redditor is 42, made most of his $4.8 million from selling his business, and has the bulk of the money in safe investments right now. He’s also trying to grow another business, expects to make multiple six figures this year, and owns his condo outright. He is single with no kids and expects to receive an inheritance in the future. 

So, should he splurge on the car, despite the fact it’s a pretty expensive vehicle?

Getting rich is about having the freedom to do what you love

In the Reddit user’s situation, it seems pretty clear that he should purchase the car. He’s explained that he has had fancy vehicles in the past that made him happy every day, and he believes that this new car will do the same. 

Having $4.8 million at 42-years-old is a great start toward building wealth and, if invested carefully, the OP could generate $177,600 in annual income from this account for the rest of his life without worrying about the money running dry as he’d be sticking to a safe 3.7% withdrawal rate. He’s not even planning on retiring, though, but instead is expecting to keep making more money so he can grow that nest egg to an even larger sum. 

Using $300K of his investments to buy something he loves is not going to put him into any financial jeopardy, nor does it appear it will interfere with any important goals like retiring at a very young age. Since he can easily afford the vehicle, and most likely the ongoing maintenance costs, he should use his money to make himself happy since that is what it’s there for.

The car will also retain at least a good portion of its value, so if he ends up regretting the choice or really needs the money later, he could always sell it.  It is worth running the numbers to understand the ongoing costs of the vehicle and make sure he’s ok with the ownership expense — but it seems likely he won’t find that to be an obstacle given his expected high salary and the money he already has invested. 

A financial advisor can help make decisions on big purchases

While the Redditor’s situation doesn’t seem like it’s too complicated, it could still be worth getting personalized advice from a financial advisor.

An advisor can help the poster to understand all his goals, and to determine how lifestyle changes like buying an expensive car, can affect his objectives. With the right professional advice, the Reddit user can decide which luxuries are worth splurging for and how best to use the rest of his funds to ensure he can continue to afford both the necessities and the splurges for a long time to come.