How things changed when you bought your first Ferrari?

So why would they tell you not to bring it over, especially if your dad is a car guy, why does it make a difference to them how much it costs, do they not come to your house because it may have been too much to spend on house than in their day?

Sorry for the q's, I just don't understand why they would be so negative towards you living a dream.

John.

 

For a real-world reference:

I intern with a financial advisor right now. For the town's 4th of July parade we got a group of guys together to drive blue sports cars in the lineup. None of them were my bosses. They belonged to friends or people he knew. We had a base C6 Vette, a C6 Z06, a new Camaro SS, and a new Mustang GT.

These cars are not crazy expensive expensive, and they do not invoke the same reaction as a Ferrari, but they are more expensive than the average vehicle. I was driving the Z06 and I remember passing someone who was sitting on the sidewalk watching the parade and hearing him say, "So that's where all of his clients' money is going."

It really got to me. I wanted to hop out of the car and explain the situation to the guy.

 

When i got the Monial I drove to work and a guy that worked for me asked did ya see the Ferrari in the deck is it real?
I said yes it is mine.
He said "I cannot top that" and the Corvette e bought while i was on vacation was about 30% more lol.

 

+1

 

This is an amusing discussion. For those who say, it's the OP's money, and he should do it ... the OP is the help. I don't mean this as an insult, merely as a statement of fact. Sorry, but under NO circumstances can it be argued or rationalized that he should do it. As someone who worked in the finance community, when bonuses were big and going around, lots of guys rushed down to the local exotic dealer, plunked down a bunch of cash and started looking a whole lot more assh*le-ish to the public at large. They may have been assh*les to begin with, but they were merely underscoring the fact to those who didn't already know them. And, where did that get them? In the end, when the taxpayer had to come to the rescue, there was a LOT of angst about "fat-cat" bankers. It would have been easier had they been a bit more discrete.

And, the "Ritz Carlton" model? Isn't about employees being flashy. Everyone's understated. From the way they carry themselves, to the way they dress, to the way they speak. Does the Ritz use a Ferrari or a Town Car as their limo?

We ALL answer to someone. Companies to customers. CEOs to shareholders. Husbands to wives. And, so on. If you want to stick your neck out, by all means, do so. If you want to be seen as profligate, by all means, acquire. If you want to have to live down and fight stereotypes, then go for it.

Fact is, you're in the business of providing a sensitive service that often provides volatile results (not always, but often). When things go bad, it's hard to justify your fees (and thus your extravagant lifestyle) to your clients. If you're doing better than they (or perceived as doing better), you're on thin ice, my friend.

I'm not saying you have to drive a sedate, boring vehicle. But, don't put yourself in a position where you may have to defend yourself. It's unnecessary and risky and could backfire on you in unanticipated ways. Ferraris are, rightly or wrongly, associated with playboys, irresponsible behaviour, impracticality, obscene spending and a bunch of other not-so-flattering perceptions. Do you really want (or need) to have to overcome a first impression formed by people based on the car you drive?

Don't get me wrong, I'm happy for you. Glad to hear your business is thriving. BUT, also, in a time when things are highly uncertain, economically, you voluntarily make yourself a target. And, based on last night's State of the Union Address, we may be entering a period where we need to consider implementing austerity measures. Maybe not the best time, optically, to be out acquiring expensive toys. Other than sating your own desire to have one, there's no need to do that.

CW

 

Very nicely stated.

 

I have a unique perspective on this as we are in the same business:

You are right to be conscious of the message you will be sending to your clientele. The rule of thumb is to drive what your clients drive, no more or less.

I do not know the demographics of your clients, but it might be that you serve the very affluent. If so, driving a Ferrari or Bentley GT or Porsche GT3 or some other super-premium vehicle would not only be acceptable, but expected. It tells them that you have reached a certain level of success, too, and are simpatico. It's similar to joining the "right" country club.

On the other hand, if your clients are largely "millionaire next door" types, driving a Ferrari or any super-premium vehicle would send a very wrong message.

You also need to be conscious of your cultural environment. I live in the conservative Midwest and being seen in anything flashy is generally considered bad form and sends the wrong message. Even the very affluent are not likely to drive super-premium cars.

My daily driver is an E63 AMG. It is the proverbial wolf in sheep's clothing and offers staggering performance but is demure enough not set off car alarms. As for the rest of my cars, they are largely play toys and stay in the garage until I take them out for weekends, driving events or car shows. Occasionally, when the weather is superb, I will take my Maserati to the office, but typically only on days when I know I do not have any client appointments outside my office.

 

I would think you would want to buy the Ferrari and drive it on the weekends, Don't drive it to meet with clients. Then go out and buy an everyday car for work. Problem solved!!

 

I know of at least one somewhat high profile money manager here that probably owns more than a Volvo.

Probably.

 

+1

 

Wow, good thread.

This has been a thoroughly discussed subject for years & years. I recall in 1979 my Mother & I taking delivery of her then new 1980 450SL. She was the local stock broker and her clientele expected her to drive a car with a high social standing. She did run into some that found such a nice car hard to accept, but she met them with "would you rather I be doing poorly as your money manager" and they soon adapted. Of course this was when the market slowly rose & rose over the years from a demure 2000.

With that said though even in these volatile times I am not sure that "hiding" behind a Volvo hood ornament (for example) is absolutely necessary.

For me my customers expect me to be in a premium/unique vehicle so I have no problems driving anything from A-Z. For you it may not be so easy. But only you know how important this is to you. You make your own success and I would bet you could deal with the limited number of clients that may take issue.

A good friend of mine once told me (when I wanted to not work at one of my business entities every day) "whats that freedom worth to you?" What he meant by that was this: He knew that the business could not be as perfectly profitable without me behind the wheel at all times, and he knew that I would have to pay a "manager" to do what I did every day since I would not be there. Well the reduced profit & the management pay ended up being less than I was willing to have to "pay" for my freedom from the daily grind. So I did it. My freedom was worth more than the "expense".

So you need ask yourself: What is driving your choice of car worth to you? Will the potential of the lost revenue be more than the enjoyment received?

Hope that helps with your quandary.

 

I would never listen to a money guy who drives a Volvo unless he used it as a daily beater in the city.

I want my financial advice from guys who are richer and smarter than me.

 

And don’t forget the staff. A friend of mine complained his car cost him twice as much because of all of the employees that demanded raises after seeing it.

My stock response for clients and staff is to tell them it’s family money, that’s why I can keep our fees so reasonable.

 

Uh huh...right.

You want the FUND managers who actually manage the money to be smarter than you (I'm talking Hedge, PE and VC, generally, and not mutual fund, here). And, you want their wealth to come from growing assets (organic v. accretive growth). Fund managers get paid, for the most part, only if they make YOU money (when they participate in the upside...the carried interest). Often, they also have their own money invested in the fund, also, so they have their own skin in the game.

Wealth managers are an EXPENSE (% of $ under management), and their fees are deducted from the gross returns. Thus, if they're driving an expensive car, it begs the question about how much you're being charged for their "expertise". And, if it's the FUND managers that are making the investment decisions, what, exactly, is their contribution. Asset allocation? Often, people do better in no-load indexed funds than they do in managed funds, btw. And, if you have a bad year, and your portfolio goes down, your wealth manager is still getting paid. Perhaps not as much as the prior year, but still getting paid. From your funds.

The bigger problem, structurally, is that the wealth manager can go out, get new clients and bring more $ under management, which provides them with higher compensation, even though your portfolio goes down. It's a LOT easier to go find new clients than it is to grow a portfolio significantly. Most wealth managers are the equivalent of going to WalMart for your financial advice. Herd mentality, limited access to products, time better spent bringing in new clients as opposed to managing existing client's funds...

CW

 

Today was interesting, as in the old Chinese curse: "May you live in interesting times."

I acquired my first F-car a couple of months ago, and have had it out being "sorted out" until recently.

Finally took it to the office today, to show staff and co-workers, all of whom are good friends of mine.

The girls all seemed uninterested in it, and somewhat disdainful: weird.

The guys thought it is cool, and had questions.

The Truth Came Out when I heard one of my secretaries telling a friend of hers, a vendor who is in the process of trying to sell me something, that "he just bought a Ferrari."

It came up in the context of a discussion about whether I can afford to pay what he is asking.

My point: people perceive that my acquiring a Ferrari has somehow changed things, when in fact, it has changed nothing.

 

buy the car, but don't let anyone at your job know you have it. i'm hesitant to even let my friends know about it for various reasons not worth going in to.

but in the end you can't hold back living out your dreams. If you can afford it, go for it!

 

Hasn't this thread become meaningless?

I bought my first 'Exotic' in the 60s; a Jaguar E-Type. After that a 330GT 2+2 and so on until now. Always an Fcar and some other 'exotics' since......!

None have changed my life, or how my friends perceive me. If you're worried about the impression you give others don't drive; walk!

If any material objects you own change how others may or may not accept you, move on. Envy is one of the '7 Deadly Sins'!

 

You just don't hang out with the "right age" girls



Jedi

 

True, I think I need to start hanging out at high school and college campuses, or where I can find underage girls or at least those less than half my age .

I know some here do!

 

Sorry Sparky... just couldn't resist the reference.... purely in jest, of course.

Jedi

 

You are quick, and I understand!

 

I've been a tifosi ever since I was a young boy. Family and friends have known of my love for the marque for as long as they can remember. I can honestly say, the Ferrari love/dream has been the most consistent aspect of most of my life. I was purely motivated to finish college, medical school, residency, and 2 fellowship trainings in an effort to one day become an owner. I doubt you or anyone can claim that they were more driven by this outward love of Ferrari then how I've lived my life. You would expect that this "total Ferrari love" about me would make the people around me, that you would think really know me, be happy when I did become an owner. You would think that they should understand how much it means to me and how having such a car is not there for me to "show off". I regret to say, that me becoming an owner has not been positive for many of the people that have been around me. if people around you are struggling in their own point of view, you having a "Ferrari" has a high probability of making feel not so good about themselves. I used to share all my new and wonderful experiences of the drives I've had, the people I've met, the places I've been to thru because of my "new" Ferrari ownership to others around me that I thought really knew me. I have discovered the hard way that sharing many of these experiences
just makes many of them unhappy, and many choose to not make as much acquaintance
with me afterward. I do not think I've changed one bit in my love or enthusiasm for Ferrari.
I don't feel that I've treated anyone diiferently since becoming an owner. The only change
was that I became an owner. My suggestion to you is to be careful with who you share this information with. Imagine how others who " don't really know you" will treat you ( ie. Coworkers, boss, business associates) when you become "that guy who owns
the Ferrari."

 

I agree with you Butcher. Some friends/people just can't handle the fact that you've fulfilled your dreams and it makes them unhappy hearing about your "success". It's the reason why some of my "friends" dont know I have 2 Ferrari's now, it's just easier to not tell them...

Money doesn't change you, money changes the people around you.

 

And you're driving around with your wallet open ...

 

I have owned and driven to work everything from a 308 to an F40. Most people could care less, but every so often Ive had someone comment that I make too much money. At that point I take them aside and ask them if they are happy with the care they have received. They have always said, yes. I then tell them that they shouldn't blame me for the decisions they have made,, and would it be better if their doctor drove a Pinto?

That ends the conversation, and nobody has ever left the practice. If you want a Ferrari and have earned it, go buy it, and stop worrying about the few jealous people out there. It goes with the territory.