did you pay cash for your ferrari?

I have had 5 F cars, and a lot of other exotics. My father taught me the old school way.....If you can't pay cash for your toys, you don;t need them..To me it would be like making payments on a Rolex, you are just fooling yourself and you didn't need it to start with....And something else I have learned...don't get in a hurry, it always costs you money

 

Someone on here is LYING.

I asked Chris of Premier Motorcars of SF this question on another thread:

I am curious, on all of your exotic sales, what percentage of people are financing rather than paying cash?


Chris's answer was:

"It was around 90% but this year more have been paying cash."

 

I had accumulated the money for the car but not all of it was available on demand. So when I found the car I wanted sooner than I expected I had to take out a loan as a bridge until I could free up the less liquid assets. I think I made 2 monthly payments before paying off the loan.

 

Sure, but that's only 90% of what moves off the lot at Premier (and assuming Premier is representative of the dealers as a whole); nothing of what sells privately or in other non-dealer venues.

 

Sorry, but I just don't buy that 81% of Ferrari owners on here paid cash. It's a lie.

What's funny is that there is this idea that it is shameful or imprudent to finance a Ferrari. I financed mine, and would do it again in a heartbeat.

 

Some respondents may or may not be lying - whatever. I just don't see why anyone would lie about this on an anonymous internet poll.

 

I thought FNA required financing.

 

It's irrelevant, though interesting.

 

I just don't see why anyone would care about this on an anonymous internet poll.

Believe what you want Husker; nobody here to impress but yourself. If ppl are fibbing, they are doing it to themselves. I personally could care less.

 

I think that 81% of those wishing to disclose how they paid, paid cash. This is not a scientific poll. I would agree that most would prefer to tell the world that they paid cash, rather than financed. It doesn't necessarily mean that you can't afford it, it just means that you may have chosen to finance. For most, it costs more to finance than pay cash and forego the opportunity cost of the investment potential, but I'm sure that there are some who have access to better financing or they can really multiply their cash with their investments, so financing makes more sense. I could pay off my house, but I choose not to. I'm borrowing against it at 5.25%, so the cost of that money is so cheap that I choose not to pay it back. What I am really doing is financing other stuff I buy with a loan secured by my house. There are those who secure the financing on their Ferraris with their homes or other assets through home equity or margin loans. Are they saying that they paid cash just because the car isn't liened? If one has any debt of any kind are they not financing everything they actually buy?

It doesn't matter whether you finance or pay cash. What matters is can you afford the car? I work with people who drive VW Jettas that they cannot afford. It's all relative.

 

you mean you couldn't care less? By the way, I couldn't care less either.

 

Good post.

 

81% or respondents to this poll indicate they paid cash, not necessarily indicative of Ferrari owners in general, or owners on this board. Since there seems to be some kind of stigma around financing a Ferrari purchase, of course the results of this poll are going to be biased in favor of "paid in cash."

With that said, I paid cash for mine but I do see many benefits to financing including asset protection and leveraging the money for investments.

Edit: Yeah, what dakharris said. I need to read all the replys before posting!

 

I don't see why anyone here should be lying..........afterall most of the people here don't know each other and there's really no point in lying.

It makes sense to me not to finance any car when you can afford it, a Ferrari or any other make. My philosophy is not to finance toys, there are others who still can afford to pay in cash, but still finance their toys........nothing wrong with that as well, just a different view.

 

Thanks PAP.........don't make me feel guilty.

 

I think it's the difference between new and vintage cars, Husker, sure you can finance something recent but there's not many banks playing in Vintage for many reasons, so there Cash is King.......

They offered to loan $25K on my vintage 512BB deal.....well, THANKS for THAT!!! LOL!

I sent it, as a deposit...

 

No option for having purchased a Ferrari with good looks?

I won't name names, but a poster here paid for his Ferrari after posing in a Play Girl Special Issue "Docs with Giant ****s".

 

Not at all my friend!

I wish I could buy those toys cash too.

 

??? You didn't sell your left lug nut to buy your 348?

 

VERY interesting conversation here. I think that there’s some story telling going on in the poll though, but it is indicative of the market in general (everyone pays “more” for their home and “less” for their cars) It’s human nature to assume that since you don’t technically have a lien on the title that you “paid cash.”

Me, I max out every single PENNY I can on secured loans. I paid $83,000 for my 360 Modena and took out a loan for the full book value at $132,000. I have an 800+ fico score, been with my CU for years yadda yadda yadda so I pay 4.925% interest. I’m no genius, but even I can find good funds which pay 10-11% without spending a second of my day worrying about it. I’m not going to get rich off of a $50K hedge, but it may just cover the depreciation. Maybe it doesn’t, but I can drive whatever car I want as long as I buy SMART and don’t over leverage myself. I guess in theory if one had too many revolving lines or secured loans on their bureau that it would adversely effect FICO and make larger lines harder and more expensive to acquire.


Seriously, why pay cash for an asset which- at the very best and in the most optimal circumstances- just maintains it’s value? These things RUST people! If you are going to keep it 20 years, then pay cash for it. If it’s truly a collectible level asset, then my argument is bunk.

 

Dont worry, I paid cash for my 348.

But the amount of cash paid for that toy compared to the toys Tarek pays cash for........ARE WORLDS APART!!

I would have to sell my first born son on the black market to pay cash for a 430 Scuderia.......even then I dont think it would cover it.

 

Hey Pap, i saw my first Scud in real life on Thursday, these things are stunning, the most breath taking Ferrari since the Enzo IMO. But that being said, they are no where near as awesome as what your first born son will be, keep him mate. And don't worry mate, when i get my Scud you can drive it when ever you want!

 

I remember one of these threads from 5 or 6 years ago where a handful of people where surprised to discover that taking out a home equity loan, then paying in full, is not the same thing as paying cash For the record, I financed at 4.79%... no reason not to use cheap OPM.

-R

 

I financed the car. It's not that I can't pay it in cash, it's just that there are better place to use your money instead of dropping all $300K+ in cash.

Other toys are leased.