Some people have a passion for cars. They have gas in their veins, petrol in their brains, also know as “Petrol-heads.”
This article is not for them. This article is for people like me, who don’t know a carburettor from a spark plug, and who can’t tell the difference between driving an M3 and a GTI.
My people have no real affinity for the combustion engine, no childhood passion for the prancing horse or the Porsche 911.
My people simply use a car to get from A to B.
Having said that, I once almost bought a Ferrari. My wife stopped me, thank God.
She was right. Buying a Ferrari would have been stupid for four reasons:
- Cars destroy value
Any decent entrepreneur knows that you don’t buy depreciating assets unless you have to. Why sink millions into an asset that loses 15% per annum?
- Cars create overhead
The more expensive your car, the more expensive the fuel bill, the tyres and the insurance. Entrepreneurs know that overheads kill.
If you want to take advantage of opportunities you must be able to move fast. More overheads = less opportunities.
- Cars attract the wrong type of people
Driving a fancy car is like sticking a sign on your forehead saying, “Come and get me.” Every salesman in the world will flock to your doorstep flogging insurance, new ventures, financial advice and, of course, fancy cars.
Why would you want to be a candle for the moths? Entrepreneurs rather keep their bank balance private.
- Cars make you a target for crime
Buying a Porsche Cayenne for your wife might seem like a show of love (and a symbol of manlihood), but in a country like South Africa (and most countries in the world), it’s a magnet for criminals. “Hey bad guys, look over here, we have money for you!”
Why buy a R2million car for your family when a Volvo station wagon will do?
Its easy to drive a crappy car when you don’t have money.
Its a lot harder when you have cash burning a hole in your pocket. Thats why you need a rule.
The rule for entrepreneurs is: Don’t drive fancy cars.