| Author | Message | ||
| Taek-Ho Kwon (Stickanddice)
Junior Member Username: Stickanddice Post Number: 88 Registered: 11-2002 |
You're right Chris. Financing a car or paying for it cash does not necessarily reflect a person's financial status. Sometimes it is smarter to finance and let your money work for you in other ways. As for Porsches... I love them dearly. I think they're fabulous. I own a C4 Cabrio and am very happy with it. No issues other than a nagging airbag light which was fixed under warranty. And no really long wait for warranty work to get done in your car. All service is done in a timely fashion and appointments are easy to set up! | ||
| DES (Sickspeed)
Intermediate Member Username: Sickspeed Post Number: 2434 Registered: 8-2002 |
"...a dealerships wet dream..." So these cars really do leak, huh...? | ||
| Chris Tanner (Ctanner)
Junior Member Username: Ctanner Post Number: 51 Registered: 5-2001 |
I got to drive a 512TR previously owned by a very famous football player. (after he retired, he did the Sunday morning shows). Amazingly, the drive off papers from the dealer were still in the glove box when I drove it. Car with license and lux tax came to $227K brand new. He put down $5K and drove away. Paying cash for or financing something is a decision only you can make because only you know everything about your financial situation. Free financial advice from the internet is worth what you pay for it. | ||
| Dr. Shelbee (Shelbee)
Junior Member Username: Shelbee Post Number: 87 Registered: 12-2002 |
I owned a 1997 Boxster, just like yours when it came out the first year. At the same time, I had a 1997 993 coupe which I drove it everyday at that time. I only put 11,000 miles on the Boxster since I bought it new for 3 years, then sold it and got the 996 cab. I owned total 6 Porsches in 10 years: 1 Boxster, 2 993s and 3 996s. Now I left Porsche marquee completely, even quit PCA membership and cancelled Excellence magazine subscription, instead subsribe "Forza" and "Cavallino", and completely switched to Ferrari. I am not looking back. Still have Porsche scale models and clothings though  I don't want to be a member in PCA with a single mom who drives a Cayennee (is that the right spelling??) | ||
| Rob Lay (Rob328gts)
Board Administrator Username: Rob328gts Post Number: 3720 Registered: 12-2000 |
$25k in the bank and enough free cash for a $2,000 a month payment. | ||
| Jamil Jamal (Jameel)
New member Username: Jameel Post Number: 41 Registered: 9-2002 |
Shelbee, I absolutely agree with you. You�re correct, owning such a fine car requires some change in lifestyle. Like I mentioned in my previous post, I feel owning a car like this is more of a lifestyle then just purchasing a sports car! And I didn�t take the comment about Porsches (and more specifically Boxsters) as and insult. I�m very aware of my financial situation and would never consider financing/leasing a Ferrari. Plus I couldn�t afford to finance the Ferrari I want. I could however afford a 308 or 328, but it�s the F355/F360 that has captured my interest. I guess I�ll stick to my Porsche, unless I win that damn lotto. | ||
| Dr. Shelbee (Shelbee)
Junior Member Username: Shelbee Post Number: 83 Registered: 12-2002 |
Jamil, Ferrari is Ferrari. They are quite different from Porsche, not to be insulting, especially the entry level Boxster. Most of the folks who own Ferrari(s) paid the car cash, versus the one who buy Porsche, mostly leasing or financing, considering zero down and cash back. It is quite lucky if someone can find such a car with the options he wanted. Have to put extra effort to find it out of state with extra shipping cost to his hometown. Some people even put money down, just to be the first owner of the next generation Ferrari, for example 420, the replacement of 360. I understand your questions. You will perhaps get there someday. Just working on it | ||
| EFWUN (Efwun)
New member Username: Efwun Post Number: 36 Registered: 2-2003 |
Jamil: For the gentleman who traded my car in with 1,000 miles after 6 months and has 12 or so Ferraris, purchase of a Ferrari is like one of us buying a bicycle. Remember, 8 (and 9) figure incomes are not unusual for these people. For someone like me, paying for the car is like passing a kidney stone, but worth it for the enjoyment of ownership. | ||
| TWA (Exoticars)
Junior Member Username: Exoticars Post Number: 87 Registered: 8-2001 |
Hey Dennis, where are you finding a nice 355 Spider for 85k?? I'll buy it. I haven't found one less than 115k in the past 2 years. | ||
| Charles Barton (Airbarton)
Member Username: Airbarton Post Number: 319 Registered: 11-2002 |
I'll bet if you wait till next year to win your million, you will be able to find a nice 355 for about $70K. | ||
| Mfennell70 (Mfennell70)
Junior Member Username: Mfennell70 Post Number: 92 Registered: 7-2001 |
One data point: I know someone leasing a '99 F355 F1 Spider for $2400/mo, 2years, full warranty (as in pick it up at his home, fix it, bring it back washed) during that time. He's had it for more than a year. Market was stronger when he got it. I have no idea if he put anything down. For the neverending buy vs. lease debate: he could have just bought the car but he prefers to lease. $2400/mo for a sunny day toy is "only $2400/mo" to him. | ||
| Ben Cannon (Artherd)
Junior Member Username: Artherd Post Number: 181 Registered: 6-2002 |
Easy, bank(or finance) $60k, but a 308 for $30, and keep the rest around (invest it) to service it. Done. Lots of people can find $60k if you look hard enough (dump the damn SUV!) Best! Ben. | ||
| ken rentiers (Rentiers)
Junior Member Username: Rentiers Post Number: 79 Registered: 2-2003 |
Jamil: "I was hoping this thread would generate more discussion about how current people, on this board, can afford their Ferraris." There are 2 kinds of owners. Those for whom the car's cost is inconsiderable ref. their resources and those everyday guys like me, who got one anyway. What do you want to know: how to make millions or how to afford a Ferrari on what might be considered an "average' income? | ||
| Jamil Jamal (Jameel)
New member Username: Jameel Post Number: 40 Registered: 9-2002 |
Well thanks to all the great responses. TimD and Taek-Ho Down, lottery winnings in Canada are not like the United States. You are not taxed on the winnings, but rather, the earnings those winnings will generate. In other words, you get the entire $1M but you pay taxes on any earnings generated from the $1M. Which if you look at from a purely purchase standpoint it�s a no-brainer to get a F355 spyder or F360 coupe. I guess I see ownership of something this exotic is more of a life style change then just purely a car purchase. What I mean by that is, with my current standard of living if I won $1M and purchased a late model Ferrari, I obviously wouldn�t live where I currently live. I would buy a more expensive house I, would also need an everyday/winter car. So the cost of living has just increased. Plus you still have to account giving money to your parents and siblings (or at least I would). I guess I'm thinking about this too much. And I know myself, I would be on the next flight to Toronto to purschase a Ferrari. I was hoping this thread would generate more discussion about how current people, on this board, can afford their Ferraris. | ||
| Taek-Ho Kwon (Stickanddice)
Junior Member Username: Stickanddice Post Number: 84 Registered: 11-2002 |
Finance $200.000'00 at a rate of 5% APR (pretty low for an auto loan) for 60 months and you are looking at payments of $3.774'25 a month. For a total amount financed of $226.455'00. Keep in mind this is figuring a down payment of 10% since tax and licence fees in my neck of the woods equates to roughly 10%. Now, your beacon or fica credit score better be over 700 at the very least and your debt to income ration should be excellent. Keep in mind that your score will probably vary depending on which of the three credit bureaus you go through. Home owning is not a must but this better not be the first car you finance. You must have credit history of paying of pretty big amounts of money in a prompt fashion. Usually having more than one car loan is not good, but in this price range, you are more than likely going to be OK. If you win the lottery of say 1 mm CAD jackpot money, you better not take the lump sum. If you take the lump sum, you'll get the net present value of the amount you've won, which will be considerably lower than 1 mm CAD. Then, taxes will take a nice 50% chunk leaving you with not enough to buy an F360 at an added markup over the manufacturer's suggested retail price. Especially considering that 1 mm CAD equates to around 650-700 k USD. Oh, and don't forget the added monthly insurance premiums you will be paying along with the car's service needs. I have way too much free time as you can clearly see. | ||
| EFWUN (Efwun)
New member Username: Efwun Post Number: 29 Registered: 2-2003 |
I'm assuming you're asking what it takes to afford a 360 in the real world, without lottery winnings. You can balloon finance something like a 360 for around $2K/month, if you have sufficiently good credit. A place like Premier offers such financing on "simple interest." With a wildly popular car like the 360, you might actually owe less at term than the car is worth, depending on lots of variables. These are not really daily drivers, or if they are, the rsultant mileage will reduce your resale. Assuming you have a house, another vehicle, excellent credit, and a bit in the bank in case you pop the gearbox or motor out of warranty, you might get away with $35K or so in disposable income dedicated to your Ferrari. Hope this helps. | ||
| ken rentiers (Rentiers)
Junior Member Username: Rentiers Post Number: 77 Registered: 2-2003 |
Except for gas, oil and insurance most of your maintenance would be warranty if you purchased a new car, except normal wear and tear. Figure $5,000 PA would be more than enough. Most new Ferraris are bought for cash. I would assume this is even more so for used ones. This is unlike other cars. Your other options are to lease or borrow. Leasing is generally a BAD IDEA unless it provides a tax advantage. If your credit is good enough you can buy a 747 on time, but why pay interest if you have won the lottery? | ||
| Todd Gieger (Todd328gts)
Member Username: Todd328gts Post Number: 387 Registered: 6-2002 |
Well put T | ||
| Dennis (Bighead)
New member Username: Bighead Post Number: 12 Registered: 2-2003 |
To, here's my $.02 on this. A nice 355 spider can be had today for US$85k. Budget, worst case, $4k a year for maintenance, assuming you drive 7.5k miles a year. Figure $2k a year for regular stuff, like oil, antifreeze, brakes, tires and such, $2k for the 15k mile service (and little odds and ends), and $6k for the major (belt, 30k) service. Add it all up over five years, and you get roughly $18k, plus you'll need to contribute $2k to the next owner as a discount on the service he'll want to get done before he buys the car from you in 2008. You'll arrive at $4k a year. Make sure to budget an extra $5k-$15k if you have any nasty surprises (new F1 clutch, exhaust headers, valve jobs, etc.). Add in an appropriate amount of depreciation (10% a year?), your local insurance, tax and registration costs, and you'll get a rough cost of annual ownership. So, clearly, it's attainable for someone who wins the lottery. (all numbers are in US dollars) vty, --Dennis | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 2853 Registered: 9-2001 |
Ok, I can't resist - I assume since you are thinking about this you do not currently live on the street, have a roof over your head and are not starving. - i.e you are currently making ends meet. Someone gives you 1 million, gov takes 50% so you have 500k - now assuming you do not owe back child support or have huge debts you cannot service that means you have 500k for a 150k car. You would be a dealerships wet dream if you beleive it will cost 350k to service a 150k car over its life. | ||
| Jamil Jamal (Jameel)
New member Username: Jameel Post Number: 39 Registered: 9-2002 |
The reason I posted the question like this, because I didn�t want to be rude and ask a direct question on the board like �How much do you people make/have in order to afford a late model Ferrari�. I figured that people would more likely answer my initial post based on their experiences and financial situation. | ||
| Ricky Nardis (Rickyn_f355)
Member Username: Rickyn_f355 Post Number: 265 Registered: 8-2002 |
too funny! | ||
| TomD (Tifosi)
Advanced Member Username: Tifosi Post Number: 2852 Registered: 9-2001 |
Not to be harsh but I can't beleive you have posed this question. It seems like a no brainer to me. Hello Mcfly???? | ||
| Jamil Jamal (Jameel)
New member Username: Jameel Post Number: 37 Registered: 9-2002 |
I was just wondering how much money is required (in your bank account) to purchase a late model Ferrari (F355, F360). I was thinking about that this morning. If I win $1M (Canadian) would it be "wise", let me rephrase that, would it be feasible to purchase an F355 spider or F360 coupe? Prices around here range from $160,000 to $220,000 (CDN). Or would maintenance cost put this out of reach? I'm just preparing myself, in case I win the lottery tomorrow :-) ahahaha� |