"Affording" a Ferrari with ~100K Salary?

Doable but personally I would not. Expenses as a 20 year old can add up, travel, going out, etc. Also would this be your only vehicle? Especially in the winters it probably wouldn't be a great idea to daily drive a 360 or 430.

 

I'm both very conservative and very patient.

I"ve been on this forum 12 years, when I first started undergrad (had another username in 2003)

Wearing the 2004 Fchat gathering Tshirt I got at Indy F1 right now actually.

Things have changed considerably, both personally, professionally and in the economy.

When I was finishing up my graduate degree the line of credit I had was extremely tempting to use to get into an exotic. I was about to pull the trigger on a Pcar and slide very far into debt.

As a check, I PM'd a few users on this board on advice. They all said wait, graduate, establish yourself and get your money right.

Best advice I have gotten.

Now i'm not there yet, but I'm solidifying my financial position. Having already been in a position once where my car sucked all my finances, I am going to avoid it a second time.

The best way to do so, in my opinion, is stick to the 10% rule. Others will disagree, and that's fine, but for me, purchase price of car should equal 10% of your net worth (not counting taxes, reg fees, etc). It's very, very conservative but if you stick to that, nothing will keep you up at night (providing you haven't gone crazy with the mortgage)

Of course I came from middle class upbringing and had no safety net to catch me, had to pay off my debts, walk 5 miles in the snow, etc...

My advice is to keep the Fcar at the back of your mind, revisit things in a few years, and use it as motivation. You'll get there someday.

 

One thing to consider: if you buy right, you can always get back out without too much of a haircut.

Right now you can drop 50K on a Kia, or 70K on a pickup. The equivalents will be far more expensive in 2025. Both will lose tons of value. A classic exotic should cost a bit more than those examples, but should maintain the value or drop much slower than a "normal" ride.

 

Pharm.D.
Yeah, that's how it runs in my family as well. I haven't given much thought to paid internships but I'll aim for one during P1-P4. I looked for available openings at CVS but they don't accept PP1s at the moment. Experience in a retail setting would help a lot.

Ouch... Thank you for taking the time to break it down.

Sounds like you're living the life now! Good luck with your family
I wish I could raise the comfort level but the market is/will be too saturated.

Thank you for sharing and I hope you get there too soon. I suppose there really is no point in speculating at this point. Like you and many have said, I should wait it out until I'm much older and in a place to consider spending that much money. Especially when I know I have other priorities.

You didn't misunderstand haha. May I ask what you do to make 200K/year?

No. My first vehicle would be much cheaper so that I could save up. My mother has a Mercedes-Benz E-Class that she doesn't drive much. If I do end up buying a 360/430/any other model, then I could make the switch when necessary.

Thank you! But I won't be buying a car for a few years

 

100k? NY/NJ. That barely enough to live on.

 

IT Strategy for the then Andersen Consulting (now Accenture). Still in the same line of work but not with the same employer.

 

How nice to have a young lady enthusiast, on the Fchat forum.Welcome, indeed!
As others have said, there is time enough for you to achieve your goal. Work hard and use it as a constant motivation. If you want it badly enough, you will get there, for sure.
All i will say on the matter, is that when it comes to this type of toy, then its better to try and save and pay cash , rather than borrow the money..... especially as i doubt that interest rates will be as low as they are now, in 6 years time!

BR,
Jez

 

Your salary could work if you do plenty of research and prioritize correctly.....pay off loans first. I would consider buying a home in a very near by state with 0 sales tax and just rent in the main state you work in. I mention this because if you have any car bought and delivered in the 0 sales tax state you often times can avoid paying the tax...a huge savings. Also you would buy other items in that state as well obviously. But the state should be close like no more than a 14 hour drive.

 

On 100k it is possible to have one. Just requires good prioritization and thoughtfulness. I would suggest first paying off loans quickly and never carry a balance on your credit cards...that interest you are paying can be for supporting oil and fluid changes/flushes. Second really consider buying a home in a very close 0 sales tax state (no more than 14 to 17 hours away by car). Simply rent cheaply in the state you work in and buy a small place in the 0 tax state. That sets you up to buy your dream or near dream car anywhere and pay most likely no sales tax. But you must prove dual residency and not some vacation or time share in the 0 sales tax state.

 

I mentioned family money because at $100k/year, someone else has to take care of student debt, rent, other living expenses or there just wont be anything left after taxes and "living"... if the living costs and school debt is being handled by someone else, and the $100k is discretionary funds, sure you can afford one.

 

Yes you can do it but not if you plan on financing it outright. Paycheckcity.com has a calculator that tells you your exact take home pay.

You should be able to pay all of your bills from one paycheck....comfortably. Driving an Fcar will drag you down financially, if the payments dont then the maintenance will. Something will crop up and then you will be upside down making payments on a car you cant drive or sell.

Part of growing up is going after needs instead of wants. After time the wants come naturally.