I am a bit confused

Some worry, some don't. What they have in common is that neither of them like losing/wasting money and they all know it's going to happen. I don't care too much about depreciation or the next guy whose going to buy my used car, but that doesn't mean I'm going to spend $200K on an SL AMG when I know I can get one for half that a year or two later practically new. If someone told me my car was going to be worth half as much next year, I'd probably just wait a year and get one used. We all expect depreciation, well, those of us who didn't get a new Ferrari model at MSRP and didn't plan on selling it back to the dealer.

It's always something to think about. Not even rich people like wasting $50K.

 

If you've been reading for 6 months you would already know most of us agree with you

 

The good times are over and most everyone is/has started to reel in their horns. I really don't think there are too many people right now that want to see $50K just disappear into thin air if they can help it.

 

There's a reason that some people HAVE large amounts of money to put into toys/investments. They know a bad return when they see it, and don't effectively toss $10K or $500K into the wind unless they have reached a level that that truly IS nothing significant to them.........OR, they'll continue to wonder why everybody doesn't just write-off XYZ amount of funds, since they are seen (by someone on the outside) as having it to spend, often the same who live to present themselves among the group previously mentioned who wouldn't miss it at all, however far from their own reality that may be.

There's alot of that in the housing market right now.......or there was.

 

I think it is more of a psychological thing. My wife will pass on a tomato if she thinks it is overpriced. No one wants to be made a fool. You pay what something is worth, not what you can afford.
Dave

 

I live near Atlantic City.
You wanna see money go up into thin air
Eric

 

My Uncle's girlfriend is the daughter of the in-law of the owner of Hyundai. I know confusing.

Anyway, the wife of the man that owns Hyundai still takes the city bus everywhere she goes - she does not take a car or get driven, no matter where she goes.

It just shows that some people value money differently.

 

There's a flipside to the market for newer Ferrraris -- literally. When the F430 was the "it" car, and you had a spot on the list to buy one at MSRP, you could literally drive it for a while, then flip it for a profit. This opens the Ferrari market to people who don't really have the cash, and have no intention of keeping the car -- i.e., they can't actually afford it.

Once prices trend down, there's no upside and these newer cars go wanting for buyers (F430 and 599 prices are on a decline that will probably last 15-20 years now).

The vintage cars are entirely different -- many owners are in it for the long haul, know the market intimately, and own genuinely rare cars that should always hold most of their value by virtue of being what they are. You could argue that the Boxer/308/328 market is also not speculative at this point.

 

Doesn't the fact that it's extremely hard to get a Ferrari at MSRP prevent this? Everyone has told me that unless I've been buying and selling to the dealer, they aren't going to sell to me at MSRP.

 

lol@ all you clowns..... making a million a year, bought and paid for homes, etc etc, and saying you can't afford an F430. Kill yourselves cos if you haven't learned what life is about and how to live by now, you don't deserve to be alive. LMAO @ I can't afford to lose 30k depreciation. You kids crack me up.

 

Many lottery winners find themselves poor again in a year or two. They blow two to five in two years. Why? Because they don't appreciate money and how it works, they have no idea how to manage money and spend it wisely. It is the real reason they were poor to begin with and think that the Lotto is an investment strategy. Trust fund babies very often have similar issues when the the fund dries up.

The most sure-fire way to have money is to not spend what you have. It is usually way easier than making more money.

 

At the end of the day new cars will never be an investment and one shouldnt approach purschasing one as an investment.

Yes you may loose some money but can you possibly quantify the joy the car has given you?

 

It's not that they can't afford it, but it's on principle. I'm not going to pay $30K over sticker and they offer it back to them at $20K under sticker. I have much better things to do with that $30K.

Ask Evander Hollyfield how his finances are doing. But hey, I guess he knows how to live...

 

No, but the 50 sycophants and 72 illegitimate children he feeds do.....

 

+1

You could have all the money in the world... you still wouldn't leave a 40% tip unless the service was really good.

 

The reason it's so hard to get a Ferrari at MSRP is precisely this. People who don't give a crap about the car have a chance to drive something elite for a few months and then sell it and make money before the depreciation slide begins.

It's harder to make money after you've become the 'greater fool' and dumped $500K on a 599, but the guy who had the place in line and paid MSRP had the newest Ferrari and then made ~$150K on top of it, all while driving a Ferrari under warranty and cementing his place in line for the next time. I had lunch this week with a friend who did this with his 360 and is on the list for a California next year.

 

An expensive game of musical chairs?

 

Doesn't work that way.
If you get the car at MSRP you are obligated to trade that car back at MSRP or less! in order to get another Ferrari at sticker.
No profit for you, still,a great car to drive at no loss and access to new ones when they come.

 

fair contribution.

I am quite similar to you.. I've got friends around Europe and the US with twice as much as me, but in assets only.. I would say I manage well, but only because I never let things like expensive toys within my budget, rather outside my budget and in my liesure spending capacities. With that said, a loss wont really be a significant loss and life will go on. Some (alot) of people buy expensive toys on different basis', using collateral or assets against them, thus accuring a loss inevitably.
Like someone else mentioned in this thread, most will agree with you, because most do what you do.
The only cars I have bought on credit were my previous Carrera4 and the e46M two yrs back.

 

True, but rich people generally have a hedge against the loss. They may substantiate the loss with a time value assumption about the few moments they got to spend behind the wheel.

Me, I just buy 'em cheap and lose as little money as I can. If done properly, someone making $25 an hour can afford to drive a Ferrari. It has less to do with your income and more to do with your debt to income and creditworthiness. I would have been better suited driving a Ferrari @ 25 years old than I probably am now.

It's just a car, and if dealers can make money selling Ferraris then regular Joe's should be able to as well. Dealer's don't have some magical jelly beans or anything.

 

You are very right. Welcome to F-Chat .