did you pay cash for your ferrari?

I had a highly motivated buyer.

who, based on prices I'm now seeing, could likewise turn a nifty profit!!!

DM

 

have purchased all toys for cash, have about 30 now. i had to borrow $$ for garage. there is always a catch

 

Funny.... had this been a poll started by someone other than Coach, we'd see some sarcastic and colorful responses.

 

Yes, the money man will always get you: sooner or later

 

Did I see you working at Smart Tech? Andy, is that you?!

 

It's quite a feat for a person to pay cash for a car - ANY new car. It's quite a rarity in the world we now live in. Those of you who can do this with something like a Ferrari or a Lambo - a thousand congratulations to you. If you do not miss the money, great. I'm the biggest cheapskate, and I'd need many, many millions not to miss even a hundred grand, even if it were sitting 12ft away in the garage in the form of a car.

I have this same philosophy in life - we don't borrow anything if we cannot afford to pay for it cash. I take a lot of these "one year, no interest, same as cash" deals and pay them off. It's a tortuous way to exist sometimes because you cannot just go out and buy anything you want whenever you want. It takes careful planning. With an exotic car, I'd consider putting down 50% and financing the rest. If I needed to sell it and the market was soft, at least I know I: 1) have some cash left, and 2) can dump it at a highly reduced price and still get some money out.

Does anyone else go into their major purchases with the mindset of "how will I sell it if I needed to?" I don't buy anything without thinking about how hard it might be to get rid of first.

RMX

 

I never make the toys a liability.. They are already paid for before I purchase them, whether its from money generated by other assests or cash from a previously sold assets.

 

and for that reason, I only get the toys when they are not liabilities, but just possesions to enjoy without worry.
Ofcourse it takes time to accumulate the assets to support the expenses but if you do it in that way, you almost never worry about what to do when you are done the with car - you simply buy what is within your budget, with no regrets, then sell it for what you can sell it for since you never took a hit. (As long as your assets generate income of some sort)
Its almost like credit without having to pay the money back or interest on the money... (unless you want to pay your asset back)
It all depends on your financial standing.

 

The last 4 cars I bought were all cash transactions, including the Ferrari.

 

That means you can't afford it. You're just renting it until you run out of money.

 

After the divorce, buying a new house and financing 1 exotic in just a little over a year. Paid cash for the Ferrari.

 

Really? Could you please explain this point of view.

If I buy something, I always consider how hard it will be to move it on, regardless of the item (within reason). This does not mean I am renting these things. Nor that I will need to sell for any reason other than I want to.

Paid cash for mine by the way.

 

Paid cash. I personally feel like I wouldn't be being honest about myself if I financed a Ferrari when I couldn't really write a check for it. Now I look at it as a nice reward for a lot of hard work, and a milestone in a life of sports car enthusiasm, rather than as another stream of bills.

 

I think I understand his point. If you're not sure today where the last payment will come from, you're purchasing it with a "stream of payments" perspective. If the car costs $100K, and you have $200K in cash and finance it anyway, then you're not wondering where the last payment will come from.

I'm not a finance guy, so I tend to divide the car world in cars I can afford and cars I can ogle at Monterey.

 

paid cash,If I fianaced it it would've been a 360 and not a 308,but thats what I had cash for and very happy with my car

 

I finance anything I can if the interest rate is below 7 percent. I do not think it is prudent to have $50/100/200K sitting in your garage doing nothing when it could be working for you. Big chunks of money belong in investments, not in rusting sheet metal.

 

I financed mine. It's paid off in Oct.

Frankly, if I had just stashed $$ into a Ferrari fund, I'd be further away from the purchase. Between rising costs on the cars I like and the divorce, I'd be in a hole. As it is, I've had the fun of driving one for the past few years, met lots of interesting people, and if everything goes to hell at least I have owned one at some point in my life.

 

Total BS.

I never buy anything expensive without some consideration as to how I'm going to sell it.

Would you buy a cheap house in a lousy location? Sure, if it's cheap enough and you want your mother in law to live there. Otherwise, you're going to take neighborhood and condition into consideration because someday, you're going to sell it and move.

When I bought the 360, I looked at Euro cars, salvage cars, private sale cars and a car from a dealer. Bought the dealer car. Why? Becuase they'll take it back in trade, or sell it on consignment and gave me a warranty. I didn't buy the Euro or salvage cars because they are ALWAYS harder to sell. ALWAYS. I bought a car that I wanted, but I don't just piss my money down a hole and pray I don't get burned on the back end.

Being able to afford a $100K write off on a car vs. WANTING to do it is what we're talking about here.

Renting it until you run out of money is what the guys who lease new Lambos (or buy one with seven credit cards) are doing.

DM

 

Yup, those were the days my friend.

Of course, it did need a little work. (You have the 2" thick notebook full of receipts, remember?)

DM

 

Cash.........I believe toys should be paid in cash.

 

You have some mighty impressive toys Tarek!!

 

financed 2 cars at 50% of their total cost. If you can afford it and it does not change your life why wait. Besides what if you want to buy a car which then doubles in value in the time you spent saving up the original price. Then what do you do?

Again, I said it should not effect your life. The same as spending XXXK cash on the car I sure hope it is not effecting your financial security/life.

 

I think the logic here is skewed, but is a clear example. When buying a house you take neighborhood and condition into consideration because YOU are going to live there. Would you live in a dump just because you're going to spend the rest of your life there? No. Same as a Ferrari.

The d**chebags in new Lambos are often just barely holding onto the car.

 

Hypothetical Example: Young guy 34ish owns 2 houses with 600K equity in properties over 55% equity , has saved about 1 million liquid with excellent firm Goldman Sachs making on average 8-15% returns (not this year but still making money) wants to get 150K in 2 sports car that are IMO fully deprecated say a 328 and a 512 TR. Does not want to pay cash, takes equity line out of one property that floats @ -1% and the net rate is 3.2%. Using this example is it smarter to pay cash for this car or something creative like this hypothetical scenario, and it is truly made up firms and numbers are for example purposes only? Just curious from some you guys who are smart money guys.

AK

 

I paid cash........