Need Some Validation on Buying First Ferrari

Hey All,

First post on the here and wanted to hear some input on buying what would be my first Ferrari.

Some background, I've been into cars for a long time (since I was a kid), and nothing has really consistently tugged at my heart strings like Ferraris. Getting my a dream car always seemed like something very far away however the past few years I've settled my family, bought a house, and were in a generally comfortable financial situation, which led me to dreaming again (specifically about a 458).

I just hit 30, and our net worth is close to 2mm (with a good amount of that liquid), and yearly income (now) is around 450k. Other side of the coin, is I have two young kids, my wife does not work, and I am sole breadwinner of family. Our expenses are high (probably 180k a year all in, with a low mortgage (we do spend comfortably). All that goes through my head is what ifs (what if my income goes down, what if I regret buying the car and I wish that I invested that money instead, what if the car tanks in value, I could put a down payment on a rental property for the price of the car etc.). Not a compulsive person my nature at all, and extremely risk adverse at least now (even investing in stocks is difficult for me), so I'm having a hard time over coming the hump.

I want to get what is truly my dream car so badly, but I need some validation (or a reality check). I don't know anyone that owns a Ferrari, I don't know anyone that owns an exotic period, so reaching out to the forum to hear some feedback, just as a discussion, on the matter. I was thinking of starting with an F430, but that is starting to seem a little dated mechanically and I might be giving myself more issues that I want to take on, especially with a very busy schedule. I also thought about a GT4, but I drove one and it just didn't excite me on the street (probably different story on the track). Prices are seem pretty high for Italia and Spiders right now (Spiders don't seem to be less than 230k while the Italias don't seem to be less than 215 (unless its an undesirable spec). I haven't even been behind the wheel of one and should probably do that too (although not sure how...).

Happy to hear any owner's feedback, especially owners that may at one point been in my shoes!!!

 

Congrats on getting this far, and on your first post on Fchat. Please know you'll get quite a few opinions in response to your question, and mine will be one of many.

I believe you're right at the precipice of making it work comfortably.
There are a few things to consider. Will you pay cash or take on payments? Have you priced insurance? Taxes? A local mechanic to service it? A place to store it? A good battery charger? A solid daily driver? Other obligations addressed? Kids going to private school ?

Now for the money part.
Im in a pretty close financial situation to you, in a low cost of living area... but with 3 kids in private school. 20% of my income goes to retirement accounts in different forms. I rather not spill too many details, but i jumped on a new 296 on consignment, going through a fair amount of my direct cash savings for a down payment and trading in my Roma. We're not struggling by any means, but im definitely looking forward to my end of year bonus to chop down the loan and rebuild my usual cash reserves. If it all goes belly up, I could sell the 296 and pay off the small mortgage immediately, though thats got to be an emergency situation due to capital losses.

In your early 30s, im hoping at least 1m of your net worth is in appreciating assets and investments.

Owning one of these cars is an incredible experience. You really are joining a club. Be prepared for a ton of attention and a dozen people asking "what do you do for a living?" You'll be super nervous to drive it for a while, and thats fine. While I was prepared as possible for the financial impact this car made on my life, I underestimated the emotional impact.

You cant put a price on passion. If the car brings you joy, buy it. If it brings you stress and heartache, wait.

 

The 458 is a spectacular car, but if you’ve read some of the Forum posts, they can have an expensive issue with the gearbox. 2013 and newer seem to do better, but not always. A replacement gearbox is $30K. Just some thing to think about.

 

I find that you can worry your life away and save cash or you can actually have a life... stuff is going to happen if you have $1B liquid or $1K liquid... both guys have worries. Ferrari's are about the joy you get from owning it... to me its worth the costs, and trials... I don't even think about it. if the worst happens It will go when it has to go.... when I'm at the end, I will be able to think about all the fun, and some pain and suffering of ownership. come to think of it now... the pain and suffering of owning a Ferrari are the fun and jokes of today... fundamentally day to day life with or with out a Ferrari is essentially the same, what would be different are the friends we have in our life, with out a Ferrari, I don't think we would have gotten to know any of the folks we hang with... today regardless of Ferrari status we have friends for life... that is worth way more than worry.

 

Thank you for the input! I think you summed it up really well.

I have thought about a lot of this to an extent as I warm up to the idea and I think all the ancillary items (insurance, tax, maintenance) shouldn't be a pressure point for me since technically I have enough liquid assets to pay for it in cash, without significantly affecting lifestyle, savings rate etc. We are currently putting away around 10k-12k a month (and I max out my 401k) so there is some wiggle room there. And yes, child-care (private school, private daycares) is our biggest cost. Although I don't see that expense increasing in the near future.

I think you summed it up well saying you can't put a price on passion. If it will actually make me happier, its obviously worth it, and if it doesn't its obviously not worth it. And its worth a try!!!!

 

Yeah, I've read up on it. It's a risk. Although it seems to not be a common risk (from the research I've done), but a risk nonetheless.

 

That's really cool. Yeah that is an aspect I am looking forward to as well. Getting to know other owners and enthusiasts!

 

Welcome to FChat, Abe!

Seriously, I wish more young guys had your clarity and ambition—huge congrats on what you’ve already accomplished, and blessings to you and your family.

First and foremost: get the car you actually want. Not the “makes-sense-on-paper” car, not the my CPA would approve” car—the one that makes your heart race. Otherwise, what are we even doing here? (Yes, within reason. We’d all love a 250 GTO wouldn't we?)

Second: one of the best things about Ferrari is the brand equity. These cars hold value shockingly well. If life throws a curveball, you won’t be totally hosed. Every Ferrari I’ve owned ended up making me money.

Last: drive everything you're considering. Some Ferraris look like a dream and drive like a donkey cart. Others don’t jump off the page but win you over the moment you take the wheel. Crass analogy incoming: you wouldn’t marry someone without seeing if you’re compatible in, uh, key departments. Same logic applies here.

Excited to follow your journey. Don’t be a stranger.

Cheers,
Paul

 

Just do it.

You're in a better financial position than 95% of the planet's population. If you don't want to tie up a lot of cash, just finance the thing and accept the interest as a "fun fee". If you buy right, you'll be able to get most of your purchase price back out of most Ferraris. Not ALL, of course (those days are gone), but you'll lose less money than if you bought a C8 or any luxury barge. Even if you only hold it a year, at least you'll have scratched the itch.

There are things to analyze and spreadsheet, and others that are just passion leaps. Don't listen to your head here -- go get what your heart wants.

 

Side note -- go find your local Ferrari club. Get to know the owners and the cars. The best ones trade hands without public notice.

 

Thanks Paul for the warm welcome. What you mention is something that actually dawned upon me fairly recently. To get the car I actually want, yes the one that excites me, the one I can't stop thinking about. If I'm not getting that, then why buy anything!!! And yes, value is probably the biggest justification for allowing myself to get one, you aren't throwing a lot of money down the drain. If something ever happens, you can pretty easily recover (at this point in time).

I need to drive what I am considering. Still have not found an easy way to do this. I need to do it upon knowing I will buy but have to do it before I go down too far of a rabbit hole on a specific model (would like to try the 458 coupe vs spider vs F430).

 

Yes amazing advice. This is how I want to go about doing it. Would rather do this then buying from a dealership if I'm buying a 458 or F430.

 

Congratulations on making it to this milestone. I can’t say much more than the others, but just want to weigh in with an opinion- I think it’s good to have something you love beyond family and also outside of your professional life. I think the 458 is a great place to start with Ferrari and I think as long as you go in with eyes open on costs, you will be just fine. I very much doubt this will happen, but just be sure you would be OK if the car all of a sudden is valued at 50% of what you pay for it. Things do happen out there in the world. My guess is you would not be happy about it, but you would also be OK. Thats the key. These cars usually hold value and I think the enjoyment of living your dream is worth it. FWIW, my opinion is the 458 will hold to gently appreciate from here, but, Im just one person who could easily be wrong.

 

The 430 is a nice car, but will be completely overshadowed by the 458... drive it first... then compare a 430. you will see why the pricing delta.

 

I'm excited for you my friend. Part of the joy is the 'hunt' - savor and revel in your good fortune. Drive both, trust your heart. It will lead the way.



Keep us posted!

 

If you lost all the money you spent on the car how would affect you? I think that is the best way to look at it. Would you not drive it because you are worried about mileage? Would you baby it or would you enjoy it?

 

Thank you!!!!

 

Buy the 458 and plan on selling it in 1-2 years. You won’t really loose any $$$ other than a few thousand in maintenance or some repairs. that’s less then you’d loose in a regular new car and certainly less than some douchey overseas vacation.
And if you love it, keep it.
Simple.


and curious how are you spending $180k a year with a low mortgage?

 

I got mine around your age (not that long ago). I may not have been at your income or asset level, but I lived in a low cost-of-living area, didn’t have private school tuition, was in a comfortable upper middle income bracket, and very cautious with my finances. Even when everything lines up, there are always trade-offs—and I think that’s where a lot of people get stuck.

I ended up buying an F430, scratched the itch, and had an absolute blast for 2–3 years. Met some great people—many of whom I still keep in touch with—and honestly, I stick around more for the community than the brand these days (though I’m still an enthusiast). I sold the car when it felt the time was right. Life moved forward, no regrets. With family and work taking up more space in my life, it just became harder to justify the amount of time she sat in my garage. So I passed it on to the next enthusiast.

Truthfully, it was one of the best things I’ve ever done. It’s hard to explain, but for lack of a better analogy it’s like post-sex clarity. I fulfilled a dream, and now the brand feels less like some untouchable aspiration and more like another normal, albeit special, hobby. In a lot of ways, I enjoy driving less “premium” vehicles more now than I did before Ferrari ownership for reasons hard to explain. It took away a hurdle in my life.

Lastly, a close friend and mentor told me: “It’s better to enjoy these cars while you’re young—when your reflexes, eyesight, and physical flexibility let you truly experience them.” He was absolutely right.

 

wow. you are super rich. Insane numbers.