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

I think its weird how some folks get a little hostile with the question. Its a fair question to ask "can I afford it?" I make anywhere between $400k - $1.2M per year depending on how things go with business... and I have wondered the same thing. Do I make enough?

Its not a crazy question. I mean when I was making $100K per year I had 2 extra cars (not my daily driver) that were $30K each .... If I had been a single guy not spending a small fortunre remodeling my house, its conceivable I could have afforded something like a used 360. But I would not have felt comfortable. Even at my current income, I don't feel comfortable, because I worry about how I will feel if I have to drom $40K on the car one year because something major breaks. Not worried if I can afford it but worried I will resent it....

ANd I think that comes from the fact that I still consider myself "working class"... I make more money now than I used to, but I still think of it as hard-earned.

My financial advisor says go for it, no problem. But I am not comfortable... and when it comes down to it, that does need to be a big part of... yes, do the math and figure it out on paper, and then do some soul searching and really think about how you will feel about spending that money on the F-car, even if you can afford it, do you want to afford it?

 

+1... nice post.

 

Yes, someone with 100K salary can aford to own one. But only you know if that person can be you. Figure out the monthly expenses (payment, insurance, repairs and so on) and then determine if you have that much left over from your paycheck. If you do then you can do it. If you do not have that much left over then it probably won't work for you.

One of the things I learned early on in life is that most people spend everything they earn on one thing or another. So someone making 300K a year may not have any more disposable income than someone making 100K a year.

 

so damn true.

 

I believe that too many "stretch themselves" not only economically but psychologically. It is difficult to be bombarded by the internet and advertisements constantly telling everyone their homes, cars, breasts and penises are smaller than whomever. The pressure is on to get it and get it now. Who cares about tomorrow or responsibility. Somehow it will all be taken care of. But wait, how secure is that job, investment, or cash flow? About as secure as the next commodity price. Anyone in their right mind should refrain from buying anything right now (althouth one could argue that will create a self fullfilling prophecy) because it is better to stay even with inflation (not difficult to get 4% CD's with $200,000 for around 7 months) than "gamble" that the dollar will do this, oil will do that, the credit and housing markets will go the other way. Buying cars is the last thing anyone "questioning" such a purchase should be doing. If you have enough money that you do not worry about winning or losing, be my guest, but as the old adage goes, "if you have to ask, it is too expensive".

I exerpt something I wrote on the Corvette Forum below.

Whether it be a ZR1 or anything else, too many are self consumed believing they are "entitled". Who tells it like it is anymore? We are so politically correct the obsese don't over eat (they have a glandular problem) and the unemployed can't find work (althoough they might consider retraining or working anywhere to earn their own way).

If Obama gets elected he could not steal enough to compensate for self indulgence. Stealing from the rich and giving to the poor just makes more poor people (why work?).

Anyone with an I.Q. over 5 understands that more people getting a service and few people paying for it will ultimately fail.

As a country we now owe over $8 trillion dollars. In the past we owed it to ourselves. Now about 50% is owed to foriegn countries. There will be a bad day when we wake up and find we are "owned" by the Chinese and others. So much for "freedom". Iraq will be the least of our worries. We may eventually need "permission" before doing anything.

More to the point, GM needs to borrow about $7 billion to stay alive and its stock multiple is less than that.

As goes our country and GM, so goes the res of us. After the stock bubble of 1999, the housing crisis, created by people wanting a free ride, the next shoe to drop will be credit cards. Credit is tightening and the ability to act like you are more than what you are is about to get much more difficult.

All this impacts everything and everyone and that is why you won't have to wait as long as you think for a really good deal on a ZR1. Best

 

Wrong. About 80% of the Ferrari buyers pay cash. Depends on whether you need that relatively small amount of cash or not.

Art

 

Personally - if you can still live comfortably and save enough for retirement + family then you can afford it.

There are many many types of ferrari owners and you just need to decide which group you want to be in.

1. Multi-millionaires that have 10 businesses, 100 houses and a F50 is chump change
2. Millionaires with a few real-estate properties that just wants to enjoy life a little bit and have 1 ferrari + nice investments
3. High-pay individual that LOVES cars and don't mind living in a regular place
4. High-pay individual that LOVES people to look at his Ferrari and stroke his ego

I hope you don't fall into catergory 4 =)

My brother in law makes more than 1 million/year and he only has a 30k Audi A4....

I make NOWHERE near him and I have 2 cars that is losing value faster than I can make money..I wish I was into collecting stamps or something....car hobbies are $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

 

As usual I think RBK has it about right.

 

80% sounds very high. Is this a fact, or a good guess?

 

Owning a Ferrari is a fun and special experience. The pleasure is also related to your age. After a certain age, I don't think it means the same thing. I do not intend to offend anyone by this. So of course you need to be able to afford it, but also consider the right time in your life.

 

There are many GREAT logical posts here. I fall right in this range so I will give my insight, and I have studied/researched/planned whatever you want to call it- but at a salary give or take @100k - you can afford a 360- BUT not live comfortably.

Here's where I fall- I'm 30. I'm right there at this range depending on bonuses/side jobs and other stuff. Its not really the cost of the 360- it would be the maintenance/TCO. What I've learned from friends is that be prepared for 4 digit repair bills, at any time that could range in the 2-3k for regular service..OUCH.

I will get to the point I can COMFORTABLY own one. I have a 2k mortgage payment, and like the fact I can spread retirement and savings from a 401k, Roth IRA, online savings, investment, and a little savings account. I dont contribute fortunes to each, but every pay check I contribute to EACH account. I couldnt do this if I had the 360. The monthly would just eat up to much.

The two cars I own other than my daily driver ( honda accord)
I'm happy I have a fully modded show car NSX, although 10 years old is still a great car, and very fun.
I have a MB CLK 430 that is loaded with RENNTECH Stage 2 goodies, and is a great car as a substitute.
I am so practical I drive the accord 5 days out of the week. I dont want to give this up , although I would both cars for the F-car.

Wont get into numbers as most already have , but it would be 360 and strap myself for $$- or by next year, a 996 Porsche Turbo/Viper along with a MB CLS/SL. The cars add up to about 75-80k but you get a little variety..I'm happy with that for now.

I just dont want to fall in the hole...or ready for a huge service bill if that ends up happening...but I will of course find a way to make the 360 happen sooner or later =)

 

I might wish to add a #5 to this. Its me. Its the 31 yr old self-made entrepreneur guy who has spent his entire life viewing Ferrari car ownership as an icon of achievement and success. Now that I can afford one, and i have met other of life's [necessary] obligations; marriage, 3 kids, 3 cars, home, vasectomy, I am ready to get my life goal. Only problem is that I am paying income taxes that trump a corporate ceo's salary and it is tying up my toy car money.

the one thing i have learned, from my friends who are current owners, and from meeting and reading the forums with you, everyone owns a ferrari for different reasons.

not one reason is more important then the other. we should respect each others differences and financials.

fwiw.

 

I'm begining to think I didn't put enough thought into buying my car.

Dang, I knew impulse purchases were a bad idea.

 

I think this means since you are single as a chick magnet it is it is more worthwhile. I agree completely. You feel good driving it and when you get to her place.

 

B-I-N-G-O

 

You can get into an early 360 for 80K.

80K is a F250 and a nice bass boat. Lots of people making less than 100K have that kind of rig.

It's all about priorities. If you want something, really want it, you'll find a way to make it happen. Just beware of planning and waiting and saving until you're too old to enjoy the thing.

 

Short of snorting it up your nose or stuffing it in a garter belt, there are few ways to blow money faster than exotic cars. Devaluing liabilities that will provide a sure negative return when that one day comes when you will tire of it.

Someone once told me that for every 12 (hot gal) there is some dude out there that is tired of waking up next to her. Be certain that will happen with an F car or any other 12. When that winter morning surfaces are your ready to accept that this relationship is going to end poorly? If you have fathoms of disposable income and it is of no mind, than go whole heartedly into the lifestyle. If not, prepare yourself for the committment and enjoy the ride along the way.

Everyone who frequents this board is speaking from experience. Many of us have owned serious high end cars. Don't make the Ferrari your first. Make it your aspiration and ask yourself at what point did I acclimate to the best that money has to offer. If your there, you'll know it.

Best of luck.

 

I think it's an interesting question and one that I've thought about asking myself, but I believe it does depend on a lot of circumstances.

In the city where I live, 100k/year is not the same as 100k in Los Angeles. In my situation, I have no children, am a female, single, and don't have anyone to support but myself. My long-term goal, if I can stick to it, is to save as if I had a child that would go to college in several years. Instead of sending the kid to college, I'll buy a Ferrari. Maybe. I don't know.

I just recently added up how much my parents spent on my brother and I sending us to private school from K -12 and then college. They could each be driving a brand-new Ferrari for what they spent. They are not wealthy.

So I think a lot of it depends on your priorities. I'm sure right now I could finance an older one and make the payments. But I wouldn't have a nice garage to park it in, wouldn't be able to eat out when I want and enjoy life as much. Sure I'd have the Ferrari, but it wouldn't be worth the financial strain. I think it's something that needs to be paid for in cash, but that's just me.

 

This is how I feel. The car just thrills me, more than most things in life. I just see one and I get chills.

 

Are you sure you are female? Wish my wife thought that way. She is pretty indifferent.

 

There is nothing wrong with financing toys "short term". If you can put minimum 50% down that would ideal other wise wait.

 

get the car while you are still young. sure, it may become a financial challenge.. but most worthwhile things in life begin as challenges... the greater risk, IMHO, is NOT taking a chance at happiness.

you cannot put a price tag on happiness. just some advice from a cancer doctor, for what it's worth.. best to squeeze the most out of life within the present... you can ALWAYS make more money, but you will NEVER be able to make more time. enjoy in good health.

 

absolutely..

after dealing with sickness of both my parents (they are ok now) who are still young (in their 50's) and I see how fragile life can be.. "sieze the day" ABSOLUTELY applies..

Again, I do think 100k is a bit dangerous for a 360 modena, but NOT for a z06, prime reason would be warranty.. at 100k you are getting a 360 that is out of warranty and that is where you might take a bit of a tackle **IF**(and modenas are pretty reliable so not much out of the ordinary SHOULD happen) something awful happens..

I feel that 200k or even 150k would make the decision much more doable.. but I gotta tell ya.. being young and single and owning cars like this is a freaking BLAST.. while it may be all facade.. there is nothing like owning a kick as car like a 360 modena.

 

that is so well put, and what interesting timing as I was mentioning my families cancer scares also.. god bless they are both doing well now but for 3-4 year I was so horrified for them..