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Daily driver vs 355 running costs

Discussion in '348/355' started by johnk..., Dec 6, 2014.

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  1. johnk...

    johnk... F1 World Champ
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    #1 johnk..., Dec 6, 2014
    Last edited: Dec 6, 2014
    For the heck of it I though I would add up the estimated cost of running a sorted 355 for 5 years and compare it to a daily driver. The parameters were as follows: 355 driver 2k miles/yr. dialer driver 15k miles/yr. Annual fluids for both. One set of new tires each. Insurance, full coverage for the year on both. Fuel. A major service on the 355. Personal property tax as we pay in CT. I assumed the daily driver was a $40k car with average value of $30 over the 5 years for tax purposes. My 355, being 20 years, old will qualify as a classic car with a tax value of $500. The number came out very interesting.

    355 $14608 for 5 years. The daily driver $18150. This was without consideration or depreciation. If you throw that it the daily driver would probable increase by about $20k. obviously the 355 will depreciate considerable less. I sure there could be other unexpected cost on both cars, but there is a lot to work with here.
     
  2. F1moving

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    #2 F1moving, Dec 6, 2014
    Nice. Its what most of us kinda knew. Its the haters that want to proclaim the opposite.
     
  3. Dave rocks

    Dave rocks F1 World Champ
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    #3 Dave rocks, Dec 6, 2014
    Maybe it's because I have not had the second coffee yet but I don't understand John?

    What does personal property tax have to do with operating cost? My DD BMW 335xi cost me about $3k in service over 6 years. Are you adding fuel too?

    It would be helpful to see a spreadsheet.
     
  4. Enzojr

    Enzojr F1 World Champ

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    #4 Enzojr, Dec 6, 2014
    One must use intelligent thought and make sound financial decisions with Ferrari ownership. After I got divorced in the late 90s I sold the house and bought the 87 328 and became a renter. I have grown up since then, financed the 355, have some cash and good credit. So if I have to max out the credit card to keep it running I will sell this house, max out all available credit cards, borrow money from my Dad and upgrade to a 430. I am very happy being grown up now, and don't have a wife so there is no adult supervision to keep me my spending under control, the DD does have some deferred maint issues but still runs.
     
  5. Julia

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    #5 Julia, Dec 6, 2014
    ^Sounds reasonable.
     
  6. SoCal1

    SoCal1 F1 Veteran
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    #6 SoCal1, Dec 6, 2014
    Well stated and very real world
    Now way are these cars investments as so many think unless you flip them without title changes.
    Factor in storage, lost revenue for money sitting also and cost rises.

    That new apartment building at the beah I am looking at instead of a 458 is looking better everyday

    :)
     
  7. johnk...

    johnk... F1 World Champ
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    #7 johnk..., Dec 6, 2014
    Dave go back and reread it. I've listed what I have included for each car. Yes, fuel, and as I said, personal property tax, AS WE HAVE IN CT. We pay property tax on cars here as do some other states. Fuel differences are a big deal since the daily driver is used a lot more. If I take out the CT property tax estimate they would be about the same, but the daily drive would still be more. And frankly, the depreciation which is not included makes the 355 cheap to own.

    I guess my real point is that these cars really aren't that expensive to own. You could buy a primo, low mileage 2009 BMW M3 for about $40k. In five years, with what would be considered low depreciation, it would be worth about 1/2 that, even if you keep the mileage down. Before you even consider the cost of running it you have lost $20k in depreciation.
     
  8. Dave rocks

    Dave rocks F1 World Champ
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    #8 Dave rocks, Dec 6, 2014
    How much does the car cost in property tax and is that annually? And yes John, I saw that but did not know states have tax on cars other than sales tax.
     
  9. drbob101

    drbob101 F1 Rookie
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    #9 drbob101, Dec 6, 2014
  10. 355dreamer

    355dreamer F1 World Champ
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    #10 355dreamer, Dec 6, 2014
    Yup. These things are often overlooked.

    I've owned 3 355s. Each one I've sold for more than I purchased it for. (Well, I haven't sold the third yet, but I don't think it would be an issue)

    In fact, even considering maintenance, I've basically broken even over the 3-4 years I owned each car. And, everyone knows I didn't skimp on maintenance.

    Try that with any other sports car. Not easy.
     
  11. Eric C

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    #11 Eric C, Dec 6, 2014
    Curious to see how much my property tax will be on the 355. It's impossible to figure out until they come collecting.
     
  12. johnk...

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    #12 johnk..., Dec 6, 2014
    Depends on assed value. In CT cars are assessed at 70% current value. I estimated that a $40k would have an average value of about $30k. So assessed value = $21k. Mill rate = 35 But around $735/yr. You can see this was another reason I wanted a 95 355. In January it qualifies as a classic car and the assessed value is $500 for classic cars in CT. So the tax is only $17.50.
     
  13. drbob101

    drbob101 F1 Rookie
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    #13 drbob101, Dec 6, 2014

    What a smart guy!! Good job John.
     
  14. johnk...

    johnk... F1 World Champ
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    #14 johnk..., Dec 6, 2014
    This year, 2014, my 95 was assessed at a little over $29k and property tax was about $950. Next year it will drop to $17.50. Got'a love the classis car exemption. :)

    If you want to get an idea of what you would pay in CT if you car is newer than 95 look up the NADA average value, multiply by 0.7 then by the mill rate. In my case about 0.035. Mill rates in CT also vary significantly by town so two people who have the same car but live in different parts of the state can end up paying very different tax on their cars. There has been talk of making a state wide mill rate for vehicles but, as you would expect, those from low mill rate areas don't want it, those in high mill rate areas do. Typical government grid lock.
     
  15. INTMD8

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    #15 INTMD8, Dec 6, 2014
    That's why I've decided to keep driving my old Lexus. It's already worth nothing so it can't depreciate :)
     
  16. Dave rocks

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    #16 Dave rocks, Dec 6, 2014
    Do you pay sales tax on used cars in CT? If so, sounds pretty bad to pay both :(
     
  17. johnk...

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    #17 johnk..., Dec 6, 2014
    Yes, sales tax as well. 6.35% for cars under $50k, 7% for over $50. Another reason I did my deal with the major broken out from the car. I.e. I bought the car from the dealer "un-serviced" and then paid him additional to have the major done. So the car was under $50k. Didn't have to pay any tax on the service.

    What's going on Dave? You have avatar of the hour?
     
  18. 97 Spider

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    #18 97 Spider, Dec 6, 2014
    Sure the 355 can be cheaper to maintain over the 5 years but cost / mile is the thing. Some of the added cost of the DD is in fuel because you have driven 7.5 times further. You only made it 10,000 miles in the 355 but have driven 75,000 miles in the DD. Which is the better value? ( To me the 10K miles in the 355) :) I can put a car cover over my 355 and make it cost me $0 a year but I don't think I'll do that.
     
  19. Shootfighter65

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    #19 Shootfighter65, Dec 6, 2014
    what if you drove your 355 15k a year? Its still a lot of money for a car that you drive 2k a year
     
  20. johnk...

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    #20 johnk..., Dec 6, 2014
    $14k over 5 years is about $230/month which is less that many people spend on cable+internet+phone. It's just a comparison between relative cost.
     
  21. emac

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    #21 emac, Dec 6, 2014
    Here in SC we pay 3% sales tax on the purchase up to a max of $300. Every year we have to pay property tax on vehicles based on the value (they have their own book). Luckily, like Ct, old cars only pay about thirty dollars a year. I think it is 15 years. Makes the Ferrari easier to handle.
     

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