Need Some Validation on Buying First Ferrari

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.

 

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.

 

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?

 

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.

 

I bought mine at 35.. used a loan at the absolute bottom of the market. Best decision I ever made.

Only things to consider: income stability. I think about the guy on tiktok wanting to sell his SF90 (which BTW I want when it's finally depreciated). Bought it at MSRP when we was making 50k a month with his business. This year business is down 50% and he wants to unload the car but he can't sell the car because he has no equity in it and he's upside down. You don't want to be in that position. When I was searching for mine, I had one seller tell me "I don't want to sell it, but it's got to go". You can always sell it.. but there's the guy who wants to sell it, and the one that has to sell it. You want to be the former, not the latter. As a professional, I'm always going to have the income with very little variability. If there is more variability that's OK, just factor for it.

Have an emergency fund established before you buy it for in general things. In this case with about $72k cash in it before you buy the car. Not "we have the funds overall in other accounts".. those will find a way of all disappearing at the same time and if in an investment account will get his when the stock market drops 50%. Never fails. Dedicated emergency fund for 6 months expenses.

Then, before you do ANYTHING.. find the guy who will be fixing your car. Find your reliable mechanic who will fis it and talk to them personally and introduce yourself. I knew my mechanic Karl before I bought mine and discussed my plans with him and got his feedback (at the time a 348 or a 360). Know who you will bring the car to before you get it.
Read up on the intricacies of each car you want. Know the cars and their problems. As above, get the one you REALLY want whatever that is.

Finally, Don't worry about the statement the car makes to others. The right people aren't impressed by it, and nobody cares. I've had mine for 15 years and it's been a great experience. Faster doesn't matter on the road. You're not going to be able to extract all the performance on the road. They all feel amazing when you drive them and there is as much validity in driving a Mondial as an Enzo.

Good luck with the search.

 

Your costs on kids will go up - I guarantee it. They cost more as they get older - always do.

I read a million of these posts before buying mine 10 years ago seeking validation and information. In the end I don't regret a single thing - but I have made choices. At your income level you can't have a huge house a car and multiple expensive hobbies - you have to choose. If that's your passion do it. You're right you will see people with massive mortgages and or cottages and or lifestyle expenses. If those aren't important to you than choose accordingly.

I think you're fine to do it. Post pics.

 

Another vote for a 458 as the best entry point that will be value stable. As mentioned the only big ticket weak point is the DCT.

Cars at dealers can be CPO still and Ferrari Financial doesn't report to bureaus, and has different programs including balloon purchases and leases that can make the monthly obligation relatively low. For those of us who are on commissions or get large annual bonuses, that is a plus. I'm a contingent fee lawyer and most of my income comes in chunks closer to quarterly basis than weekly or even monthly.

As Tillman said, just do it. It's hard to overstate how much of a hero you'll be to your kids too. I go back and watch videos I have of driving my kids in the various cars, especially their "first ride" reactions. And then my teenage sons driving them too for the first time.