For Those Saving up to Buy a Ferrari.....Where do you Stand?

I'm not a wealthy guy, just an average Joe barely cracking 6 figures (Engineer), with the normal family pressures, etc.

I'm in the process of saving up to buy my first Ferrari after being a Corvette guy, and now driving a Porsche 996TT. I'm just curious where other people are in the process.

In my case, my car fund consists of the following:
1. Money left over from my allowance at the end of the month
2. Overtime at work
3. Any bonuses (few )
4. Any revenue I earn on side jobs (I do freelance drafting work at night and on weekends)
5. Any vacation I sell back to the company at the end of the year

So the good news is that my car habit has no effect on the family, since its all from extra sources

The bad news is that it takes several years to make a purchase

Currently, I have $38k in the car fund. Car-wise, I've got several options. The following list is not in order of preference but from the least $ to the most $. I'm still deciding what car to choose, which also has a bearing on how long I can keep living this way....scrimping and saving

1. Mondial 3.2 cab - $35k
2. Mondial t cab - $40k
3. 348 ts - $45k
4. 348 spider - $55k
5. 355 GTS - $65k
6. 355 spider - $75k

I'm not considering a 360 etc solely because I'm not willing to kill my boss for the insurance money......no matter how often his wife asks.

Let us in on your process......maybe I can learn something.......but I doubt it as I'm pretty F'in stupid

 

If you have to "save up" to buy the car initially then maintaining it is going to be very tough.

 

Why? I won't have car payments and some of those sources of income will remain open after the purchase.

 

If his monthly inflow becomes his maintenance money, and he keeps a 10K or so cushion, he should be alright.
To the OP:
I didn't see the 328 on your list, but I think it would be a good choice. If you don't need a super low milage garage queen (which I'm assuming you do not by the prices you quote in your post) then you can be bulletproof with about 60K. 40K for a decent car that needs a major, 6K for a major service and then put the remaining 14K into a high yield money market or bond fund. If you continue to throw 2K or so into the maintenance fund every year, I seriously doubt you'll have to look elsewhere for funds. This plan is really quite conservative, but it will allow you to enjoy the car without it ever causing you to worry about your "real" obligations. In fact, you might get to a point where you could reduce the inflows to the maintenance fund, but you will always need that principle as a cushion in case something serious and unexpected rears its head. Naturally, if you want to track the car, you'll need more cash.

 

When you are making payments, maintenance can be tough. He'll pay cash and be in good shape. Maintenance, depending on model should not be more than 1-2K per year average. Everyone either saves up and pays cash or makes payments. IMO paying cash is better.

Dave

 

Do you plan on working on it yourself?

 

Sell the Pcar and you are golden. You'll never miss it after you get the Ferrari.

Why no 328 in your list?

 

For a Germanic mercenary, you make some good points

On the 328, no doubt a good car and a great improvement over the 308 series in looks, performance, and reliability.

When I think of the car though, the first thing that comes to mind is the cheesy Magnum PI show. So the car is very 80s to me. Secondly, 260 hp really doesn't go very far these days. Thats also an issue with the Mondi 3.2. Third, they don't sound like the modern Ferrari.......which is really important to me. One of the advantages of the Mondial t over the 3.2.

Sound maintenance plan, thanks for that input......certainly a possibility should I select a $40k car.

 

I think I have the aptitude......and I think I could handle most things up to an engine out procedure. Would have to spend $3k in tools.

This is one area where the pre-power steering (less complexity overall) cars would have the advantage.

 

Yeah, I do think I'd miss a 500 hp fire-breathing dragon called the Porsche Turbo

I love being a ricer terror.....

Another problem with trading it in would be the added need for a daily driver. Right now, my beater is a 1997 Camaro with 142,000 miles.......so its just getting broken in.

I will probably at least consider it in a couple of years to see if a 360/2005 Mustang convertible combo is do-able.

 

Well, maybe a little doubt...

 

Get rid of the Porsche buy a average car ( Accord etc ) and put the extra from there into the car fund.

Frank
(still driving the Accord w/150K miles but has 2 Ferraris in the garage)

 

I'm in a similar situation to you, engineer with ballpark same income. The big question is current debt; I had zero, so jumped into a '99 355F1 with a down payment similar to what you are talking about. I'm handy with cars - on this one I restored the interior, installed a new clutch, etc. so maintenance costs aren't too bad. And I smile from ear to ear each time I sit in it!

 

Thankfully we get a generous holiday program; who wants to work on Christmas?

I haven't looked at all of your posts, but I think you may be disappointed with the performance of any of the Ferraris you listed in comparison with a modded 911 TT (or did the 996TT come with 500hp stock?).
These cars were came off the line in Maranello with such great variation that a "good" one would be noticeably faster than average right off the factory floor, so I don't know if my experience is typical, but my car is competitive with a 993 on the mountain roads here in Virginia. I've never ridden in or driven a 996TT, however, I think you'd find a 360 just bearable from the standpoint of acceleration and braking - if that's your standard.
The thrill of my car, along with the looks, is the noise, the great curving fenders obscuring the nearest bit of the road, and the eye to door handle view I get of many other "sports cars" on the road. When I drive a 996 C2 115 mph, I can't believe I'm going that fast - with my eyes closed I'd hardly know I was moving. When I drive my car 65 mph, I can't believe I'm going that slow. I guess it all depends on what you want out of your F-car.
To return to the original purpose of the thread, you're financial plan for the car will naturally depend on which car you choose. If you wanted a TR, you might only need 1.5X the cash for the purchase vs a 328, but you'd easily need 2X the maintenance budget. I'd certainly budget more for 348 maintenance (apologies to the "Brotherhood") than a 328.
Then again, most of these cars aren't depreciating, so you could get a 328 or a 348 soon, drive and enjoy it for a few years, and then trade it for a 360 or a 550 if you found you wanted a more modern car with more power only losing the maintenance money (low mileage cars excepted). My problem is that I currently like the 328 so much, I'm back to ground zero; my next one will be an addition rather than a replacement.

 

This statement bothers me. "Allowance"? Is that the money your wife allows you or money you have deemed expendable? Hopefully the latter. You definetly need to consider the maintainence costs and possible repairs. The more modern the car, the greater costs for both. I agree with the 328 recommendations. If one car is a 3.2 Mondi then why not a 328? Same car, performance wise but better looking; unless you need four seats...

Jeff

 

Yes, I'm used to taking hits off the "boost bong", which is why if a Ferrari is a weekend car to the Porsche it doesn't have to be fast......but would like it to be around 300 hp at least.

 

Our debt level isn't zero but we are doing ok......we don't have any stupid debt (credit cards, home equity loan, etc.). Yeah, you are my new master having a '99 355...except for the auto tranny

 

It looks like you have your heart set on an open car.
The Mondi 3.2 is going to be a notch slower than the 328 (same engine, more weight and drag), and I wouldn't be certain that a "t Cabriolet" will noticeably out pull a strong running 328, but I haven't been in one, so I don't really know. Maybe the best compromise would be to save just a bit longer and snap up a "best of the breed" 1999 355 Spyder?

 

I used to have more money until the Dentist got ahold of me

Both my wife and I have an allowance for our hobbies that we are free to spend as we see fit. We used to just have an open spending policy, but I'd get pissed about the useless crap she would buy........and believe it or not she didn't see eye-to-eye with my car habit...go figure. So if I want an obnoxious exhaust I just go buy it now.

Good catch on the Mondial contridiction. Yes, the 4 seats is the appeal. We have one child and are trying to adopt another. The Mondial is the family first option, and I prefer the T to the 3.2 for a number of reasons.

But every time I see a picture of a 355 it drives me nuts.....

 

You're right, Mondials don't outrun anything, but the family top-down cruises are something we enjoy, and a Kreis-seig exhaust would make the T sound very sweet.

I don't see being able to wait it out for a '99........more like a well-driven '95.

 

If you scrim and save this will take you forever. You need to leverage your money. Investing in stocks and bonds is a 1 to 1 ratio. you take your 38K and buy 38 K of Stocks. However take the 38K and Buy Real Estate your 38K buys (in Canada) a property of $380,000. It the Market goes up 10% you have just doubled your 38K to 76K in one year. Sure beats trying to save. I am a Broker / Owner of a Real Estate Company in Calgary, Canada and most of my client buy numerious homes to leverage their money for whatever toy they want.

 

^^^exactly

this is what i do. real estate investing.

it's rather shocking what you can have in that business, rather quickly when you just refi one property (and raise the rent to cover the higher loan). do enough of those turnovers and you can go out and buy a Ferrari with one check if you want. and you haven't done much of anything.

but most of the time the money is put back into the investments for paying out future property taxes and upkeep. but on occasion it's "happy time" and the reward can be attained.

many of these people driving exotics do not pay for them by "saving" a damn thing. at that level "savings" as it is commonly known is seldom part of the language. therefore, where do i stand? i'm not saving up for anything. that no longer quite applies to asset investments.

at a point, the money itself generates more money. this is often how these "rich folks" afford their lavish lifestyles. as for me i live very modestly and don't show what i have too much. i still work.

 

I agree that you have to have your money in something other than a straight account. Personally, I am in the stock market. Even with my conservative investments, I still averaged at least 12% return the last 5 years. I also drive a Honda with 233k miles on it so whatever I would spend on a car payment goes in the car fund. And if my car dies I can find another for around 2500, and then drive that for another 100K miles. After I close on my big garage, small house, this summer, next up is the Ferrari and I am looking at all the same cars for myself. I am leaning toward the Mondial T myself.

 

348 spider is for you. Looks stunning. Still faster than 99% of the cars on the road and much more affordable than a 355, although, if you can get a 355, I would do it.







You are almost there.




If I were you, I would start my search for the exact car I want and if you find it, DON'T MISS THE OPPORTUNITY. There are not tons of these cars around. Finding yours is important. Finance the remainder of the $$ if you must, but just don't miss it.



P.S. - It's ok to spend a little on yourself. You only live once!!!

 

i do similar things. i drive a beat up 1990 Maxima. by looking at me you would never imagine that i could actually consider buying a Ferrari in the near future. but that is part of the fun. keep them guessing. i'm also an artist by trade, so lots of my peers are often shocked to discover that i am a pure capitalist. for some reason there is this dumb stigma that all artists must be borderline homeless and have no interest in money. where do they get that idea? look at salvador dali --one of the filthiest richest artists ever to come around and flaunted it beyond all measure.

as well, without money, how can anything happen in life? you would have to live in the woods naked and eat dirt without money. or live among a rain-forest culture and hunt and gather. as well, if you're self-employed as i am, why is it so shocking a premise to want to invest for the future retirement years? only hired, non-artistic, salary people can think this way?

as well, Ferraris are designed by skilled artists, craftspeople, and engineers. but a non-automotive artist cannot like or want a part of Ferrari, too?

the double-standards and misconceptions afoot are staggering. all the more reason to buy a Ferrari and show up in front of them, watching their priceless expressions of shock.