When Do you Decide You Can Afford A Ferrari?

Roth? If your income is low enough to qualify for a Roth IRA, then you don't make enough to own a Ferrari.

 

I think the answer to the original question here is the same as the answer when someone walks into a Rolls Royce dealer and asks what kind of gas mileage it gets: "If you have to ask, you can't afford it." So, you decide you can afford a Ferrari when you can. Otherwise, you can't.

 

It doesn't and you don't. You just drive it home one day and take her for a ride. Better yet, let HER drive it.

Ken

 

BIGGG no no!!! Too many horror stories of letting the wife drive the Ferrari.

 

that's the truth.

maybe he meant "reported" income.

 

You can afford one when you can write the check for it without worrying if you have enough money to do it and you don't sweat what the maintenance costs will be.

 

Forget it, it won't happen a Ferrari NEVER makes sense, it's purely emotional, and CAN be worth every penny !

 

After having large saltwater boats and airplanes I have come to the point where the compairson is not fair. Boats are in the class with helecopters. You know boat stands for "Break out another thousand"

I knew I could own a Ferrari when the money it cost would not interupt my life if it were lost, thats why I got a 308 instead of a boxer.

 

When you can write the check, and not worry about it. When your professional life is secure, and you can afford a little mishap with the car, and you can get the model that you want.

Art

 

A ferrari never makes sense, purely emotional

you can afford a ferrari when you can cover the purchase price, plus gas, plus insurance, plus budget 3-4k in mait a year and not have to sweat it, it probably won't cost 3-4k a year to mait, but you will sleep better at night knowing you can expect to spend that much, and if you don't then bonus.

 

If it's within 10% of your net worth or the payments are within 15% of your monthly income.These could be just one of the guideline's.More importantly is weather your comfortable or not.I have seen Multi-millionaire's who can easily afford one hesitate and I've seen some people do whatever is necessary to own one.

 

Precisely. Spot-on.

The bank sure as hell wont lie to you. If they say yes...there is no doubt.

 

...When your wife stops saying no, you can't have one.

 

I was considering a new 997s, and after seeing a msrp of around $100k, I decided that it made no sense to buy a car that will lose 60% of its value in 5 years, and despite the warranty, still is expensive to maintain. I bought my 1995 F355 spider for a bit less, but since it just had its major service, in 5 years it should be worth a hell of a lot more than the Porsche, and will be much more fun to own and drive. I wasn't planning on driving the 997s in rain or snow, I have as SUV for that. I will keep my E430 for my daily driver, more practical than the Porsche. I will get a new daily driver eventually, but for now I am happy. Don't buy a Ferrari unless it will be your "other" car, certainly not your only car. Remember, cars are NOT investments, they WILL depreciate, but if you price your Ferrari right, shouldn't lose most of their value driving out the showroom door.

 

what sorta ferrari did you have in mind?

 

Well, my milestone is when I have got the money in cash.

Hope in a year will have 45.000€ cash. If I find a nice 328/348 I'll buy it. If I don't, I will wait another year, have around 60.000€ and buy a 348 Spider and have little extra money.

I will be happy in that level, will have money for maintenance, pay my mortgage and live happily with my Alfa Spider and my bike.

I think that I am not going to upgrade to 70-80.000€ car in 5 years time unless I become rich...

 

Sounds like you have it figured out. Join the brotherhood, brother! Start looking now, that way you'll recognize when the great car for good money is available. Also, it seems like the Ferrari market dips in the U.S. during the middle of winter, so you can save a few bucks buying then. This also gives you a few months after purchase to get the car serviced, and any modifications done before your best weather arrives.
BT

 

If I start looking now, the problem is that if I find the best 348 Spider, for, say 50.000€, in two weeks, (obviously a great deal) I still don't have the money!

That would be very stressing and frustrating! Well I now, I now... I can finance, but my religion says I can't finance a Ferrari, becouse even I can pay maintenance now, I maybe can't pay maintenance and pay down debt at the same time First things, first.

And don't forget that my Alfa is not a cheap thing to mantain... we are nuts boys!

 

The suggestion to start looking now is to get familiar with the market and be able to recognize a great deal when you see it. It sounds like you are already doing that, so stay up to date by keeping tabs on the market and I am sure you will find a good car to purchase when it is time to buy.

BT

 

Pay cash for it and have money on the side for all the other stuff in life.