persons financial situation to be able to comfortably afford a F-Car ex:(360)

Let's say a 360 in the range of $100K-$120K. What is a financially reasonable salary for your average joe who may not be a millionare to be able to afford a 360 in that range, keeping in mind the ownership costs. Of course I don't know what any of you make, but this one guy was kinda talking down to one guy about if asking about the affordability of a F-car, saying that he shouldn't even consider buying one at all if he is worried about ownership cost. The same guy said he made "$300K a month from his business". So I want to know how much of your worth is going into your love of Ferrari automobiles. Can somebody with $100K salary afford to own one?

 

If you have a 100k salary, that means depending on what state you live in, you probably take home, after taxes about 70k, which is just under 6k per month. The questions you have to ask yourself are, how much are my current bills? how much savings do I have? and will I be "car poor" if I buy this thing? If you are planning to finance the car, at best you will probably get a 6 or 7 percent loan based on the age of the car. The payment would probably be 1700 - 1800 per month on a 5 year loan and a reasonable down payment. Then you still have insurance, fuel and maintainance. Are you in the area of the country that you can drive it everyday? These are all things to consider, but only you can decide the breaking point of how much of your money goes to cars. A very simple philosophy that my non-educated but very wise grandfather taught me when I was very young is this: take your salary after taxes and subtract your bills needed to live, ie; mortgage, heat, electricity, groceries, insurance, etc. Whatever is left, invest half and don't touch it and do whatever the hell you want with the other half. (toys like Ferrari's and such absolutely fall into the latter). This has always served me well, I own several cars, including my F430 and they have had no adverse effect on my finances or my ability to provide for my family. Believe me I understand the urge and desire to get your hands on one of these beautiful machines, make sure you have the financial security to hang onto it, because there is one thing worse than not getting one - get it and then have to part with it because it becomes too much of a drain on your finances. Good Luck, whatever you decide.

 

Well said, so in short the average person with other financial responsibilities could not do it on 100k/yr.

 

my advice

you should be a multi millionaire before playing with expensive things that have expensive repair bills

 

If you live in SOCAL or NY..no way on 100K

Maybe if you live in Oklahoma

 

agreed... it's very personal -- if you gotta ask, you probably can't afford it.

 

It's different for everyone. I personally think if the only way a person can get an F car is to finance it then they can't afford it. Now it doesn't mean every one that finances has to finance. Some people finance for other reasons.

I know some people who make over $150k year and are still broke.

It's just not how much you make that is a factor.

It's how much of what you make do you spend on other things?
How much cash do you have on hand?

 

I have lived in Vegas and other "tempting" (in all its forms) locales. I live by a rule that has served me well (whether in marriage or finance). If I can afford to lose it all then no worries, otherwise, stay home or drive what you have in the garage. Best

 

Well, its a tough question, but since you asked for advice it seems you want to hear it.

This thing wil cost you $2k/month maybe all in. I would say that your post-tax income would need to be 10X that and your liquid assets (not including your home) should be $1M.

 

Here we go ...
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If you have to ask, you can't afford it.

 

In pure technical terms - yes it is possible. My salary is in the same range as you're suggesting (bit more) and I own two Ferraris, a 550 and a 365BB (well I haven't collected the second one yet but will this month).

However.

1. I'm single. No kids.
2. I don't pay tax at the moment as my company does that for me in the country where I work.
3. I didn't buy the Ferraris from my salary, I just run them off that.
4. Did I mention I'm single with no kids?

For a more realistic scenario: on my current salary, paying tax, back in the real world and a non-expat lifestyle, I could run my 550 without too much trouble (around $1500 a month all-in). But it would have taken me a LONG time to save up for it and buy it. With kids and wife, I don't see how you would do it. Even single, I would have to let the BB go as it is very expensive in maintenance. Or so I've heard....


Onno

 

I suggest you visit a financial planner. They will help evaluate your finances, and create a financial road map toward Fcar ownership. One financial size does not fit all!

Tim

 

I bought mine cash, so I guess that is the best way to buy anything that is a toy. That said if you want one really badly just work out what it is to finance, then add on your bills and you will soon see if it is possible or not. Not rocket science really as you know what you earn and how stable your job is.

 

As others have mentioned, what you spend is just as important as what you earn when deciding how to allocate money. And, net worth matters.

I have known people who earn over $250k per year, who are in essence broke. They spend every dime they make and have very little net worth. On the other hand, I have also met people who earn less than $60k per year that have done very well to secure their future.

If you have enough disposable funds each month to make the payments and maintan the car, then, technically you can afford it. After that, it becomes a personal choice on how you spend your money now or in the future.

My personal opinion, is that you don't buy a 'toy' or any other depreciating assets until you can afford to pay cash.

 

Just go for it..!!!! Borrow every last penny to pay for it and drive the hell out of it until the repo man comes to pick it up.

Tell you're financial advisor to put that in his pipe and smoke it....hehehe!!!!

 

Fred is a man of great wisdom!!!!

You are my idol buddy!!!....

 

1M is a bit much too be honest. I know people with less who can still afford expensive cars, of course they buy cars that don't lose a lot of value over 2-3 years. As long as your willing to give up some other luxuries(bigger home, etc.), and you feel you can afford services and repairs, go for it. We live once, enjoy life. But then again, don't be an idiot and blow all your money on a car.

+ guys who buy expensive cars they can hardly afford and live in crappy houses look like total ****s.
+ Downgrading is embarrassing.

Personally, get into a nice home first, then worry about f-cars.

 

It's really pretty simple. Just figure out what a particular total costs are including depreciation, cost to borrow the money or interest you are losing on the money if you use your own, and maintenance. On a 360 I think you are looking at least 2k per month in after tax income. If you drive it every day it means you are handing someone $66 each day (driven every other day it's $132/day ect.....). If you are cool with that then it is worth it. Ferraris are a always waste of money if you take out the passion for the car. It is a matter of what the passion.

 

ask Suze Orman

 

http://au.blogs.yahoo.com/moneymatters/43/a-car-guide-for-the-young-fabulous-and-broke

snip
<The best way to buy a car is to pay cash upfront for the whole enchilada.>

 

I don't know if I agree with all of this

"you need to own a home first, and not just a home, but a NICE one before you get a ferrari"

"you need 1 million in liquid assets"

"you should buy it cash absolutely, if not you CANT afford it"

I have to say, VERY few of these realities apply to many many MANY ferrari owners.

I know guys with many many cars, with an estimated value of over 2M in just cars.. yet they live in a 3-400k house in the suburbs with a large garage.. why does he do this? he doesnt need or care to own a large home, but he loves cars.. he is a single non married man.. WTF is he going to buy a mansion for? for what purpose?

I know people who make 300k a year, with expenses of under 5k per month.. that could easily afford a 2k a month car/insurance payment AND have plenty left over for investments and savings..

I know people who are youngish.. but working hard at their business and making over 300k a year but haven't had the time to accrue 1 million in liquid assets, yet own 100k+ exotic cars.. because they dont want to wait 4 years to achieve this liquid cash level and just want to be happy now..

My vote is if you can pull it off, and still live well, and be happy.. then do so.. IF buying the ferrari is going to cause you stress and damage your quality of life to a level you do not wish.. do not buy it..

If you can fit it in comfortably or acceptably to your life right now.. and you really want it.. I would never advise against it.


only YOU can deciede what is the better life situation for YOU.. No one else can tell you what rules apply to a ferrari purchase.. no matter how rich you are.. this is a passion.. if the passion will not destroy you, perhaps indulge.. but I would personally suggest making 200k+ a year if you are financing a 120k car + insurance.. and be able to vacation and save and do other things.. etc. depends on your expenses at the time.

remember this.. life is a GIFT.. and can end at ANY time..

 

Cost of the car doesn't really matter. That is a savings issue or a credit issue. Whether or not you can afford to spare that cash or credit is up to you and the rest of your living costs.

All you have to figure out is how much the usage cost are. Depreciation is much more mileage based than time based. You don't have to make much at all to have a Ferrari sitting in your garage. You need to decide how much you want to drive it and multiply that by the cost per mile. If you want to drive a new 612 10,000 miles a year, you will probably pay $15 per mile. If you want to drive a 308 2,000 miles a year, you can probably do that for $6-10k.

 

Ok a bachalor that makes a $100K after taxes.

 

+1 Dom nailed it.