There's an incredibly expensive hidden downside to MrBeast's car giveaways
If you were disappointed to not be one of the winners of MrBeast's recent giveaway, this might make you feel a bit better.
In recent days the YouTube star gave away ten cars to fans in Australia.
These cars included a luxury vehicles like a 2015 Lamborghini Huracan, a 2020 Ford Mustang R Spec and a 2013 Mercedes-Benz SL Convertible.
The huge giveaway was part of MrBeast's Feastables launch in Australia, with people scanning QR codes on their chocolate bar wrappers in the hopes of winning one of the cars - the most expensive being worth $442,581 AUD [around $295,073 USD] according to Forbes Australia.
Advert
But, as I'm sure you can imagine, these luxury vehicles aren't cheap to run.
Yes, terms and conditions of the prize reportedly includes registration, compulsory third party insurance, stamp duty and dealer delivery charges, reports Pedestrian, but you need to foot the bill for anything else.
And one thing in particular that could sting you is the tax.
If you're an Aussie resident and you win a prize like this, you might not be hit too hard with taxes as you only need to declare prizes you win if you receive regular appearance fees or game-show winnings.
As per the Australian Government's website, the kind of prize winnings you do have to declare are any you receive from a prize draw or lottery run by your bank, building society, credit union or investment body.
"Prizes may include cash, low-interest or interest-free loans, holidays or cars," its website explains.
"However, you don't need to declare prizes won in ordinary lotteries such as lotto draws and raffles.
"If you win prizes as a game show contestant, you only declare prizes you win if you receive regular appearance fees or game-show winnings."
In Australia you might face to pay capital gains tax on a luxury car if you sell it for more than it's worth, however.
Meanwhile, it's not quite as straightforward in the US.
Depending on which state you live in, it's likely you'll face additional tax charges for winning a car such as a Ferrari.
"Just like if you won the lottery, there is a prize tax imposed when you win a car," Capital One says on its website. "Any earnings of $600 or more require the winner to fill out unique tax forms, typically a 1099-MISC."
Noting that the value of any vehicle won will go on to be considered part of your income for the year, Capital One gave the example of if you won a 2024 Ferrari Roma worth $247,308.
"Considering the per-capita income of $41,261 and federal taxes of $3,069, winning the Ferrari Roma would push this individual's earnings to $288,569 - raising their tax burden to $68,046, an increase of $64,977."
Ouch.
Away from taxes, there's also registration, additional insurance, maintenance and fuel fees to consider.
Servicing alone for a Lamborghini Huracan can set you back $850 a year, while it's estimated that a 2015 model's annual fuel cost is over $4,000.
Maybe it's not so bad not having a luxury car after all...
Niamh Shackleton