FERRARI F8 FINANCING

I have always paid cash for my new Fcars. With the increased depreciation on the newer cars I may consider leasing if the numbers warrant. There are so many exotics available and with Ferrari is pushing up production it will lead to even higher depreciation going forward. A lease could provide downside protection.

 

Good point… For those reasons, I lease my daily driver (‘19 E63s), and bought my pre- owned Ferrari


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Agree with everyone else. If I were to do something like this I would never do it on a brand new model that just came out which will depreciate 150K by the time you’re not even done paying half of it. Do it on a dealer 458! The damn thing might increase in value by the time you’re done paying it.


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Cash for me too. Lately been buying low mileage one owner cars where the steep depreciation has already been realized.

I used to think leasing exotics wasn't a good idea as the numbers didn't work with high MF's, I don't deduct my cars as a business expense and the residual values like my 458 Spider for example were exceptionally good i.e. 86% of MSRP after 2 years. Now that Ferrari's follow the more typical depreciation model that's not the case anymore.

 

A car should be a toy. Personally, I don’t finance my toys, because they’re toys.

I respect different viewpoints, but this is the advice I’d give a friend, so it’s the same piece of advice I’d give to the OP.

Kind regards,

Nuno.

 

A toy that is not a classic like the F8 and will lose 100k in value in 2/3 years isn’t a good use of money. Leasing is in my opinion the smarter move for those cars so u can keep your cash and invest it into something else.


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The cost of money when financing from Ferrari is disconnected from real world interest rates, so in my view it's not a viable option. It may make sense to borrow money (at a realistic rate) to buy a Ferrari, assuming you'll get a good return on the cash you do not freeze in the Ferrari purchase - but with Ferrari finance I really doubt you could get any benefit.

 

My car is paid for but for the 3% or so I can borrow the money at I can

Bingo, I can borrow auto at around high 2 low 3 % and my money makes more than that. I did however pay cash for my beater 458 lol

 

The only benefit with ferrari financial is they do not report to credit bureau so it do not show the loan on your credit report!

 

Yes FFS are just insane; better get leasing, renting or loan at your own bank.

Again, 84 months? Don't! 36-48 yes but not more.

 

I don’t really see this as a benefit. A regular bank or credit union should have rates in the low 3’s to 5-6 years. The longer terms done make sense because the rate is usually way higher

 

some say they would never finance a depreciating asset, others say they would never pay cash for a depreciating asset.

 

Not everyone is in this situation but if you put your money with a large financial institution they’ll give you huge very low interest lines of credit. My line is at 2% all in. It allows me to live my life and never touch my investments. When an investment does very well and I liquidate, I pay off line. Pretty simple.

 

This is smart and I do the same. Have a big line of credit for investments and such at basically prime. This way I dont have to liquidate my investments (especially in this environment) if I need cash. Having said that, for me, I prefer not to finance my cars. I save and buy them and not worry about monthly payments.

As far as the comment about where Ferrari Financial doesn't report your loan to the credit bureau, I dont see any advantage of that. Are you taking that many dings on your credit where it affects your credit? Best not be financing a Ferrari then.

 

Wow that is a great rate on an LOC... which bank?


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This is what Ferrari offered me before my F8 arrived. I ultimately decided to pay cash as I just can’t stand debt of any sort.



$60,000 down

60 months @ 2.75% = $5,377.93

84 months @ 3.50% = $4,048.69


$100,000 down

60 months = $4,662.81

84 months = $3,510.32

 

JPM. If you’d like DM me I’d be happy to introduce you to my wealth manager he’s a great person.

 

The claimed rates are relatively low, I was expecting higher from Ferrari... for information, could you please tell the selling price, to compute the actual cost?

 

$343,000 was final price. The rates came down a couple times prior to my car arriving a few weeks ago. I am not sure where they are today - my guess is the same or lower. Rates may be higher with zero down.

 

That is wrong. Sorry - I forgot I had to include tax and fees and extended warranty Use $360,812 for Price and $260,812 as amount financed.

 

They are now available because there were numerous cancellations. I have been waiting to get my deposit back for the past month. Even with factory open this week,I was not going to wait another 5 months when there are plenty of Pistas to choose from.

 

Are they offering any lease deals?

 

Just in to learn - my thought has always been if you can't pay cash, you should not buy it but then again, I know there are a lot of strategies.

 

I mention this nearly every time one of these threads comes up. My biggest regret I have when I comes to cars is that I did not dive in 10 years sooner. I was too conservative. Built my investments, built my businesses, built my cash reserves, took no time off, and did not indulge on any cars. With the joy and fulfillment I receive from cars now, I wish I would have simply put money down on a car and stroked a monthly payment. I missed out on a crap ton of fun because I was firmly in the “pay cash for toys camp”. Fast forward to present day, I am making up for lost time, with three sweet cars, another about to be added, one on order, and another being targeted for early next year.

Disclaimer, we’re going through this little pandemic, so take extra precautions. Will your income be secure, will it grow as intended, are you able to fund your investment plan sufficiently before allocating surplus resources towards a car? Those are all critical questions. If someone is secure and smart, there is nothing wrong with taking advantage of cheap money. In fact, I highly recommend it if you are like me, and love cars.

 

it's about all the opportunity cost. no absolute right or wrong answer. Interest of 2% but you can make 6% somewhere else? makes sense to me. Don't want to pay interest for a depreciating asset? of course it makes sense.

But if one is not able to pay cash to begin with, then financing for a depreciating toys at the rate above inflation rate calls for questions.