did you pay cash for your ferrari?

[/QUOTE][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.

 

Good points. I already justified why I CAN use liquid cash, but when it comes to class B-C sports car, there is no need to pay cash as you said, unless you keep it for over 10 yrs as a collectable. The previous M3cs i had (e46 competition) was leased, then I bought it when the lease was up (and did this with the previous Carrera as well) and on both occations the cars ended up cheaper than if i had originally bought it before the lease.

 

I've seen this before. The "smart" money finances. Well, that may be the case. However, of all the people that I know, I didn't finance much, only my homes over the years, and ultimately paid those off. Real estate investments were also paid off as soon as possible. At this point in time, I can buy and sell all of those guys who were going to maximize their profits by borrowing. Seems that they paid their profits to the bank, and spent what remained. I'll continue to pay cash whenever I can, and let someone else make sure that BofA has record profits.

Art

 

Aren't you 18?

 

Someone here I hope paid in pennies.

 

I saved and paid cash.

Personally (and I know there are those who would disagree) I'd rather borrow money for Real Estate where you can write off the interest and get a reasonably low interest loan (yes, even today by historical standards) than borrow money at a higher rate to pay for the car. Yes, I have an excellent Fica score but there is a limit as to how much banks will loan you no matter how good you're credit is. Real Estate as traditionaly been easier to borrow more while putting down less. I put down at least 20 percent cash for Real Estate and, with a great Fica, can get a great low interest loan to buy property. Ok, I know the market sucks right now and credit is tight but the property I bought 10 years ago has still done extremely well over the years.

However, leasing can be a pretty good option tax wise especially with the high resale values and the high state sales tax on an expensive car. If you plan to keep it only a couple of years, this could be an excellent solution. But, if you want to end up actually buying it when the lease expires, then it's more expensive. Your choice will be to get a lease on a totally new (and more expensive) replacement Ferrari -- if available-- or giving up driving a Ferrari altogether.

Also, it's more difficult to get financing for a car over 10 years old that is "true market value". Try to go to a traditional bank and get $40K for a 1982 308 GTS. No way without signing over collateral or a huge down payment. Or, go to an auction and get a pre-approved bank loan for whatever you decide to drive away with. Very tough without collateral. This explains the skew to cash because in many cases, there is no reasonable choice. I'm a little surprised that the percentage in this survey is this high but not completely dumbfounded by the results.

 

(1)

 

You can accomplish both actually. Here is what I did, in a nutshell: My 348 was $36K and change. I borrowed every penny at 5.75% I believe. Then, over the next year, I bought two rent houses, each approx. $150K, and approx. $40K out of my pocket for down payments and closing.

I have approx. $320 positive cash flow for each house, and so the two combined make my 348 payment.

Meanwhile, I have renters paying off houses for me. And when the Ferrari is paid off in 35 more months, guess what: THEY'LL KEEP PAYING! Then it's time to move up to a 360 Spider!

There's more than one way to skin a cat.

 

The one payment plan.

 

Financed, but plan to paycash for the next one....

 

if you cant afford a ferrari, then dont get it. toyota drives just fine.

 

Are you implying that one that finances cannot afford the car?

 

IIRC, I financed my first one thru the Credit Union, the others were cash...

 

So say you are in the 35% tax bracket and you have a 300K car collection. You have large amounts of equity in various real estate holdings and your securities make on average 10% per year. You can borrow on a interest only line of credit on some of your real estate at a say 5% and write off the interest so you are paying net 3.25% on your money. In essence you are making $18,750.00 per year - if you cant write it off you are making 15K hmmmmm you can do it this way and pay for all your majors – why tie up the cash? If you buy your cars at the near bottom of the deprecation curve even better.

AK

 

Why don't you tell us about all these Ferrari's and Lambos you have bought and owned I would love to hear about them.

Rodney

 

If you don't have the money available to buy a toy, then don't buy it, financing is for necessities that you can't afford.

 

At Long Island Bently I looked at a 360. I was going to negotiate an offer when the salesman worked up a loan projection, with a big baloon payment. I said I would buy with cash. he said, of course you may do what you prefer but the vast majority of my customers finance. I was surprised. They had a showroom full of the most amazing toys and were an authorized Bently dealer, and most purchasers needed a loan, or at least wanted a loan (I suspect needed).

 

Hellava thing to see a thread pop up started by coachi.

 

I saw him a few posts down and thought of him straight away........I miss the guy.

 

Me too, what a nice guy. I still remember my conversation with him a few years ago. :9

 

Before or after the credit bubble burst?

People can't get a mortgage, but they can finance a car that costs as much as a house?

or

If you can pay cash, *then* we'll loan you money.

 

Always cash. Why make it more expensive than it has to be.