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

So....you now have $38K in cash plus the Porsche. I agree with others here; if you want a Ferrari, you don't need the P anymore.

Income/growth stock funds and real estate will indeed bring higher returns than working, but there's several years time and some risk involved. You sound conservative, with a much shorter time horizon on buying a Ferrari.

A conservative approach, giving your Ferrari purchase date as a year from today:

Guessing from your items 1 thru 6, you'll bank $10K in cash from them over the next year, doing about what you are now.

-Round up your present $38K savings to $40K and put in a year CD. Only $2K return at 5%, but your nest egg is safe.

This will give you $52K at the end of a year, with little further effort.

In addition:

-#5: Skip the vacation completely this year or minimize it to only absolutely- needed utilitarian time off. Promise your wife a new diamond for Christmas 2009.

-#4: If you can handle a good-sized engineering project on the side without going insane, wrecking your marriage, or losing your job, do it.

-Get rid of the Porsche immediately. If you own it, bank the equity and bank the present payment amount every month for the next year. If leased, do the same.

If you can manage your work transportation with the family cars you have left, do that. If you absolutely need transportation to replace the Porsche, get a good used compact driver and leverage the purchase to the max.

Again guessing, all of this could have you at $65K+ cash in your Ferrari fund in a year. There's definitely some austerity involved, but well worth it.

I won't advise you on what model to buy!


Your story is very similar to mine.

Five years ago, I was a hard-working architect, earning about what you do now.

I purchased my 330 2+2 in late '02 for $32K cash, out of savings. Some of this was realized from the 1999 sale of my '69 Corvette.

I simultaneously took on an architectural project that kept me busy evenings/weekends for six months, on top of my regular job. The extra $20K thus generated gave me the funds needed to cover the acquisition costs (PPI, trucking from CA, Texas sales tax, title, and license...$4K on top of the $32K cash price) for the Ferrari, and bring it back from solid-but-neglected semi-barnfind to good driver by midsummer '03.

You're not F'in stupid by any means...sensible is what I'd call you. Some of us are risk-takers by nature, others aren't.

 

It sounds like you are going in the right direction. I have been saving and investing, for the day I get my own Ferrari since I was 20. But I was not just saving for a Ferrari. I have too many friends that live in a crappy neighborhood but drive Lexus, MBs, and BMWs, but they are broke. They love having the status of a new luxury car but they couldn't rub two nickels together. Also by living in their crappy apartments with no secure parking, quite a few have had things happen to their rides, So I had to have a secure place to park before I bought my Ferrari. So house this summer, Ferrari next spring.

 

I agree with the 348 angle. It is one of the most recognizable fCars that was not cheesed out my Magnum PI. It is also the best "starter Ferrari" out there for the money.

Oh and I would get the spider as they just look cooler, but if you are in Canada, it may not be very practical for 9 months out of the year.

 

That was me, except one year earlier. House 1 year ago to the day, Ferrari 11 days ago. I can tell you, it makes you smile!!!


Onno

 

House age 33, Ferrari age 53...

 

Show off!!!!

 

308 one of best looking Pininfarina designs IMHO.

and the 348, wouldn't touch the earlier ones with a ten foot pole; a nightmare.

 

House age 29

Ferrari age 32

 

We're in the same boat. Good job, side work, family committments. I've been socking away the cash for a little while now and I'm near to pulling the trigger. But I'm taking the investment approach instead of the cash approach. I'm getting my ready cash up to a certain critical mass, sitting in a nice account pulling 5.5% which means it's at least working a little. Once I hit that critical mass (3-4 months from now), I'll invest it immediately in real estate. I live in an area that's a big buyer's market and good buys are everywhere. Bank a balance on closing, generate at least a little positive cash flow, pull any equity and continue the cycle.

While I'm at it, I just might "drive" some of the investment (lots of options here without spending my own money) by picking up a 308.

I figure it will take me 8-10 months to make my investment capital. Then make it work very hard for me and jump the Ferrari ladder. Target purchase: soon if I go the 308 route, 360 by Christmas 2008.

Mark

 

My 330 2+2 was totaled in May, and insurance is settling very fairly.

We have a house to build coming right up, so I'll be on the automotive sidelines for awhile, but still keeping a sharp eye to the Vintage 12 Ferrari market

 

I agree with the fchat brothers... When I was living in Hk, I had and NSX, Porsche Turbo C-2 3.6, and M3 convertible... when I got my 512tr I stopped driving the Porsche and it sat collecting dust for 3 months before I sold it...

Now, I'm back in San Francisco, and using my 996TT as my daily driver (Plus a Jeep Wrangler Rubicon as a beater), but just picked up my 355F-1 Spyder Fiorano, (triple black, I must say) and the same dust is settling on the Porsche as the C-2!! The sight, the sound, sexy rumble? Porsche doesn't have it... It does have amazing power and mechanical grip, but...

At the end of the day, life is short... You always want your best girl around!! Driving the Porsche TT especially pisses me off when a loser in a boxter pulls up next to you thinking he's da **** (AAAHHH, kill me!!)