Thinking about buying a car? You might be averse to listening to celebrities giving advice. But an opinion from a savvy investor such as Shark Tank star Kevin O’Leary might make you take notice. Here’s why the multimillionaire says he hates cars.
‘Mr. Wonderful’ Kevin O’Leary has some strong opinions
Terence Thomas O’Leary, better known as Kevin O’Leary, is a Canadian businessman, author, politician, financial adviser, and celebrity investor on ABC’s hit TV show Shark Tank. He is also known for founding the software company SoftKey International, his official website, kevinoleary.com, says.
According to Celebrity Net Worth, O’Leary’s estimated net worth stands at $400 million. He got his nickname, “Mr. Wonderful,” thanks to his blunt, abrasive personality on Shark Tank. The nickname is a sarcastic jab at the entrepreneur, but he has embraced it, even saying on his website, “You can call me Mr. Wonderful.”
But one thing is certain: O’Leary is upfront. He will be the first to say if he thinks an idea is bad or the other sharks aren’t acting sensibly.
Asked about his demeanor on the show, he told Business Insider: “I’m trying to test the mettle of those entrepreneurs because if they think it’s tough on the Shark Tank, wait until they get out in the real world. If they can’t take a guy like me, then they are not ready.”
O’Leary: ‘Thinking about buying a car? Here’s a tip. DON’T.’
O’Leary strongly advises against buying cars. “You’re thinking about buying a car. Let me give you a new idea: Don’t,” he told CNBC Make It.
He says cars are a liability because they have exorbitant costs associated with maintenance, insurance, and amortization. That means that as cars depreciate, you lose money.
So, what about leasing a car? Don’t do it either, O’Leary advised. He encourages people to use public transportation or call a cab.
“I use my phone to call Uber or Lyft, and they take me around the city. I save a fortune. I feel good about it,” O’Leary explains.”I hate cars.”
O’Leary further encourages people to take advantage of shared ride services such as UberPool and Lyft Line because they’re convenient and cost-effective. Whatever the case, he advises people to channel their savings into building wealth.
But even a fellow ‘Shark Tank’ star doesn’t follow O’Leary’s advice.
‘Shark Tank’ co-star Robert Herjavec a different mindset about cars
Robert Herjavec is one of the longest-running judges on Shark Tank. The investor has amassed great wealth in the technology industry. His previous successes have put him in an enviable position to sustain an expensive hobby: collecting cars.
In addition to collecting, Herjavec finds joy in racing cars too. According to HotCars, the business tycoon sponsors a race team. He enjoys racing his Ferrari F12 Berlinetta, which he drives every time he gets the chance. The celebrity investor also owns a 1958 Porsche 356, a 2011 Rolls-Royce Phantom Drophead Coupe, and other high-performance models.
Herjavec’s thoughts on investing in cars
Herjavec agrees most vehicles depreciate with time, thus becoming a liability. However, he says he found an exception to this rule.
According to Herjavec, though purchasing leisure cars might not be a smart way to use one’s savings, investing in limited-production cars is a brilliant move. He explains that because of their scarcity, exotic cars appreciate over the years rather than depreciate.
Take, for instance, the LaFerrari. According to The Verge, Ferrari manufactured only 499 examples of this supercar. Because of their limited supply, JamesEdition recommends this model as an ideal investment Ferrari.
The bottom line is that your daily driver is not an investment. It loses value over time. So before purchasing a mainstream car, do extensive research and weigh all of your options. Also, establish the resale value of the car you intend to buy, keeping in mind you will not get back all the money you spent purchasing it.