persons financial situation to be able to comfortably afford a F-Car ex:(360)

try leasing one for a year, if it floats your boat buy it!

 

In the 'old' days, financing of a car was a -max- of 3 yrs.

So, if'n you wants to knowed if you can 'easily'/'realistically' afford a toy Fcar,
run the numbers on whether your budget can easily afford a 3 yr paydown
schedule, and just for fun, add in the insurance cost.

If you can afford the magic number and not lose any sleep at night, go for it.

5 yr, 7 yr, xx yr extended loans are just one way of showing that you ain't ready for it yet.
Or, downscale and pick up a 328 or TR...loads of fun, plus a good night's sleep, too.

 

When I turned 20 I bought my first Ferrari back in '92. I did some exportation of common cars while in high school and took all the money that I made and bought a 328gts cash. Even my father gave me the $20k that was needed for taxes as I took the car overseas for work. Having a Ferrari at that age was the best thing ever, at that age is also the most dangerous for many reasons. I was young enough and jumped on it, the way I saw it is that I had all the time in the world to make money and owning a Ferrari at 40 was never ever going to be the same. Today at 37 I have enjoyed different Ferraris and other exotics, but I made my best buy and had the best time ever with that 328gts.

 

the maintenance costs on a testarossa is easily 3-5x that of a 360 modena.. one major service and you are out 15-20k..

to be honest the posters bet safest bet (ferrari wise) would be the 360 modena, because one he finances the purchase price.. keeping it maintained would be cheaper than any other f-car.

 

Yep, last I checked. Sometimes I wonder if my love for Ferraris comes from my mom seeing one in the hospital parking lot while she was in labor. Maybe I could hear her say it when she stopped and told my dad, "Look, a Ferrari." See, it's meant to be that I should have one. That is a SIGN!

 

I really have been looking at what is the right point to buy a Ferrari or any other expensive car for that matter.


Right now I am 36 and unmarried. Doubt that I will be married in the forseeable future though. While today I looked at my finances, and noticed that my monthly expenses are kinda high at the moment. My highest expense would be my golf bill which hovers just under $5000cdn a month. I own my own home in a small Canadian city, and it is basically worthless. That being, it is under $400000cdn. At this point in time I am roughly 5 million in debt. I myself am not a millionaire though. (see definition below)

But I dont see my debt as alot of money really.

I believe a millionaire should be defined as some one with a million dollars in disposable income a year. Not before tax or just has the money available in the bank or with the value of ones home. But truly the ability to just spend a million dollars no questions asked and not be bothered. Or simply just be able to give it away.


I am unfortunately not at that point where I can spend or give away a million dollars. That is why I seem to be looking at used stuff all the time that has nothing but hassles and problems to accompany them!!!


That said a car should be less then 5% of ones net worth that is all.....

 

I guess you're not a car guy.

 

Interesting how many responded to this thread. I suspect no one is spending without some thought these days. Best

 

TV Evangelists got to you too huh?

Online Poker?

Mailorder women?

late night party lines?

joking. What did you get yourself into, a large business venture?

 

OK, I'll throw something in......Mid 40s, two young kids, household income nearing $200k, currently drive a 2001 996 Turbo and 1997 Camaro with 160k miles.

I started saving for my next big car purchase 3 1/2 years ago, by funneling all my overtime (6k), bonuses (not much), and outside jobs (computer drafter - AutoCAD) (3k) into a fund that as of late last year contained $45k......goal being paying cash for an early 360.

This year, I'm concentrating replacing the Camaro with a recent daily driver for no more than $25k (2007 VW EOS), and saving another $10k per year the next 2 years to meet my goal to buy a 10 year old Ferrari for cash (assuming the Porsche could sell for $30k) that wouldn't adversely affect the family.

 

not sure what this post has to do with buying a 100k (2k a month ferrari)

but since u are spending more than that on freaking golf per month and you are 5m in debt your position would be FOR buying the fcar.. hen of course you say a car should be 5% of onesnet worth.. so that means the average computer DBA making 70k per year should buy a 3k piece of total **** dumper?

 

I don't think its important to pay CASH for the Ferrari, but rather pay CASH for the depreciation which you are certain to experience. That way, at any point in time you can sell the car and you aren't upside down on it. So if the car is 150k, put down 50k, finance 100k through a home equity loan (tax deductable @ 3.99%, interest only) Your monthly payment will be $350/month (interest only) and you can enjoy the car for a couple of years. Eventually the value will fall to the 100k mark, at which point you can sell the car, or start paying down principle. Either way, you enjoy the car and you don't have to "save" 150k to do it...

Nothing is worse then having to PAY to get out from underneath something. Talk to anyone in the boating world.... exotics are a waste of money? Imagine paying 300k for a boat, and have it be worth 200k 1yr later, and it costs you $20k/yr to keep the thing!!!!

 

+1

So profound AND true.

I think you hit the nail on the head here.

 

Where did you get this #? The Ferrari dealership told me 75%+ of Ferrari's are financed.

Obviously, you have to be careful with your money and work to secure your future. But on the other hand, life doesn't go on forever and sometimes, we end up with less time than we expect. For some perspective, words from a dying (and now passed) man:

http://www.youtube.com/watch?v=ji5_MqicxSo

 

the 80% pay cash number is a complete falsehood, at least in the real world.. yes most dealerships conceed that 70%+ of their cars are at least partially financed... as is the case with all cars ferrari is no different..

I went to Randy's website 3 times a week to keep tabs on him. it was so upsetting when I realized he was no longer updating his blog which could only mean one thing.. then when I saw the news I was shocked (even though I knew it was coming)

watch the video, then BUY the ferrari.

 

Yes you can by a F-car if you make $100k salary. Just make sure you got plenty of funds in the bank!!

Couple of things to think about...

WHAT YOU KNOW, THAT WE DON'T KNOW:
1. How much debt you have a month.
2. How much liquid assets your have.
3. How much car insurance will cost per month.
4. If you're financing, what the largest loan amount you qualify for and how long you can finance. This will determine you're monthly payments.

WHAT YOU DON'T KNOW, THAT YOU NEED TO KNOW:
1. How much repairs can cost for the car. I would want to know how much routine items will cost and how frequently they reoccur. Also think about non-routine repairs i.e. F1 pump replacement. And worst case, how much a new engine will cost.

Now start playing the "what if" game on the "things you need to know", and say if these happen, can I comfortably plan for the future and take these risks. If you can, buy the car. If you can't then don't buy the car.

 

I guess I am just a bit fearful of spending so much on a car. The only thing I do that some would consider risky is flying a small plane.

I try do to be fairly conservative with my finances. I would have to say most of my debt is in a line of credit. I just do believe with the cost to fix this type of automobile you would really have to have a very conservative mindset in regards to saving for repairs that may occur. That is the main reason I would think that people should not buy the car if they do not have atleast the cost of the car as disposable income. Who know what can come up in life???


I have rented the Ferrari's and love them. Which is the main reason I would buy one. I love to tinker with the car though so I would probably do alot of my own work on it. I doubt I would have a problem with being able to afford the car in the long run. I just do not seeing buying something enjoying it and having to part with it down the road. Why I would not see hookers I guess or bother nmuch with one night stands.

Totally jumbled line of thought I know..



John G....




I spent most of it on strippers and booze!!!!


Just kidding ........

 

My personal view is never buy ANY CAR that you cannot pay cash for. Having said this I did a ballon option lease with mine and write off a portion of the car through one of my companies. The KEY is being able to write the check is a good measure of your TRULY being able to afford it.

If you cannot afford to buy it cash the car will likley end up a huge financial/emotional burden

 

the greatest quote I ever heard regarding money was from a dead european star soccer player (forgive me I can't remember his name but I am sure someone on the thread knows his name when they hear the quote)

when asked how he could go broke after making 10's of millions of dollars

I spent money on birds, booze, fast cars, and faster women, the rest of it I just squandered

 

So, your advice to someone (marginally solvent, with maybe no savings, and no gaurantee of future income) is to get a home equity loan (3.9% is more challenging these days), and spend $50,000, plus $8400, in interest ($58,400) in order to drive a Ferrari for 2 years. Did I get this correctly? You suggest someone without enough cash to buy something like this, should spend almost $30,000 a year on a car? I mean no personal slight, just an honest disagreement between lovers of cars over financial planning. ANYTHING happens to this guy along the way, he can kiss his (financial) freedome good bye. Best

 

That may be the difference between LA and SF. Up here most of the cars aren't financed, at least the new Ferraris. LA is a little flashier, but I suspect the purchasers here are a little more old money, rather than new money.

Art

 

Everyone has a different level of risk they are ok with. Debt equals risk. If you get if wrong it can change your life.

 

Hmmm even if you can afford to buy a 200 K F car... can you foot the bill for a tranny rebuild that is give or take 10 K, or do a major service that is worth another 5 K... if you can't then don't bother. Can you cough up this money suddenly or will you need to save up for it? If the latter, dont get a Ferrari.

 

I don't know anything about boats, but I had a boss who made about $50k/year and was so super excited he was buying a new boat. He towed it with the raggedy little truck he drove. I'm sure it was no $300k boat, but I would guess it definitely stretched his budget. But it made him happy. I say if you can spend your money on what you want that makes you happy without having trouble paying your bills, go for it. You only live once and you can't take any of it with you. My grampa died saying he'd always wanted a Cadillac with a ton of money in the bank.