When do you know to buy one?

I'm not an owner yet, but I vote for neither.

Buy a cheap car, pocket the rest of the cash, and do something smart with it. By the time you're older, you'll be able to have plenty of toys.

Delayed gratification is a beautiful thing...

 

Ditto..............;Too much, too young and not earned, spells disaster for one's future.

For yourself, work hard, buy what YOU can afford; you'll appreciate what you have earned much more than anything that is 'handed' to you!

 

+1. Invest it, etc. Count your blessings that someone's handing you a pile of money.

Yes, it is stupid to spend $100K on a car unless you're earning a lot more than that.

I don't know you, and it's hard to judge someone from a posting on a chat site, so I'll keep the flamethrower set on low. But I have a lot of friends double your age, who work in professional/business settings, and drive really nice $40K-$50K cars (BMW, Audi, etc.) They're not exactly slumming through life.

It's great that you like Ferraris, but you're going to have a miserable life if your happiness hinges on other people giving you very expensive toys.

 

Wow

I too am 18. I inherited some money and bought a 350Z. It was $27K and I know thats one hell of alot more than most 18 year old kids get, I'm happy with it I feel lucky and I take better care of my car than anyonelse I know. I mean your dad is offering to give you a $40-50K car and theres alot of nice cars in that range. (BMW Z4 M coupe) I understand where your coming from though, I would do anything to get a Ferrari regardless of who payed for it. However I could never ever justify asking someone to give me a car in the Ferrari price range. 40-50K is enough, be happy with what dad gives you and then get whatever you want with your own money when the time comes. I mean come on the guy already bought you a house. I know I would probably try ot get the Ferrari, but I think I'd hate myself for it.

 

Here's some more advice.

Learn all you can from your dad about real estate. Then buy all the toys you want when you're his age.

If I had parents like yours, I'd be soaking up their wisdom like a sponge.

 

Right now, if you buy a $100K+ car, it will be your dad's money that lets you do it. You might talk him into it, but it sounds like he's got his head screwed on straight and you probably won't succeed. I think you're fortunate to have a dad like you describe. Learn from him, learn how to save money, invest money and make more money. When you really learn how to make money on your own, then you can spend your money as you choose.

BTW, a $100K car is NOT 2.5x better than a $40K car. I had plenty of fun with mid-range cars and there are a lot of sports cars in that range. E.g., 90% of drivers can't drive a Porsche Boxster ($40-50K) to its full limits. Learning to do that will be very rewarding as well as help you get ready for a higher performance car.

 

See, your father is smart. Invest into Real Estate, then you'll eventually be able to buy whatever the hell you want. Listen to him,and make your financial decisions on big purchases down the road when you have more $$.
See, if you go spending money you don't have yet (buying a Ferrari and paying it off), you are in the hole from the get go. If you take that extra $$ and dump it into Real Estate, your making money.

You can either go in the hole, or make money. This is a crossroads in your life, and will vastly affect your future as a whole. Do the smart thing, listen to your father, even if it sucks in the short term. You'll be glad you did later...

Get something like a Subaru WRX or a G35. They got zip...

 

I agree with all which is stated above. Consider yourself very lucky that your dad is willing to buy you a $ 40-50k car at the age of 18. He is a generous man.
Work hard, make your own money, follow your father's advice, he seems to be a very wise man and you will know when the time is right to invest your own money in a $100k+ car. You will then enjoy the car more and will appreciate it. It is YOUR car, bought from YOUR money.

 

I'm 18 too, and asking myself the same question. Unfortunately for me, my parents are struggling to put me through college. Someday I want to help alleviate their financial struggle.

Consider yourself very lucky to have a father who values ideals that help accumulate wealth. I'm am positive that you will hit the 5 million dollar mark and beyond.

I agree with a lot of the members on this board, that you will feel a "personal satisfaction" from purchasing the car of your dreams with your own money.

This summer, I'm looking forward to capitalizing on my business idea that will one day lead me to financial freedom, and let me own my "own" toys.

Good luck on your endeavors!

 

You should probably take a few seconds to fill out your profile a bit, that way we'd know you were talking about canadian dollars from the beginning.

Like others have said, enjoy the opportunity to learn from your father. He sounds like he's done well for himself in life. Rather than try to talk him into something, based on your very limited life experience, open your ears and soak up information based on his more vast life experiences.

 

You know, that is the smartest and most mature thing I've heard from someone (especially at your age) in a long time. I'd say you've got your head screwed on straight and will have that Ferrari before 30. Good luck.

 

What an overblown sense of entitlement! This is precisely the sort of atitude that begets the Paris Hilton's of the world.
I have the means to buy my kids anything on the planet but they won't get anything for free. Things that are not earned have no value, no matter what they are.
I would never deprive my kids of the satisfaction that comes from buying their first car no matter what it is.
I understand that everybody has the right to raise their children anyway they see fit, but if I was this brat's father I would take the Volvo back and give him a bus pass.

 

+1

He has a F'N HOUSE at 18, and is not satified? Spoiled Brat.

 

If your dad insists get an oder Ferrari now. Beat the fool out of it then demand a better car. Continue accumulating things this way until your dad is broke or refuses to support anymore of it. You should be able to make yourself monetarily successful with your possessions by then and can spend the next 50 or so years figuring out how to become happy. Sorry, your dad is helping to make you into an ungrateful person that probably does not have any reason to try to excel in life.
BT

 

Sorry for the previous flame. I only read the initial post. Still, try to make your own way in life, the sense of accomplishment is what is most rewarding.
BT

 

Do something smart instead of indulging yourself. Take your Dads $50k, buy a $15k Honda so you have something reliable to get you around. Use the rest for a down payment on real estate of your own, then get to work paying it off. Get room mates to help you pay for it. You'll be light years ahead of 98% of people your age.

You speak of having a Ferrari, but I don't think you understand ownership. Can you afford the insurance? Do you have any idea how expensive it will be for someone your age? Can you afford maintenance? My car costs over $1 per mile to drive. That doesn't include gas, oil changes, or insurance. And my car is 20 years old.

In my opinion as an old guy, giving an 18 year old a Ferrari is equal to giving a 6 year old a high powered rifle. It's not a matter of if something will go wrong, but when. I was 18 once, and looking back, I was an idiot. Thank god my Dad had more sense than I did.

 

I got a new '66 Pontiac GTO handed to me at 16...It was an awesome car, I have great memories of it, but before too long I was embarrassed to drive it, considering mostly all my friends and classmates, even rich ones, drove modest cars. I kept it nine months, sold it at a $200 loss, and bought a Volkswagen bug...considered cool in those days and more appropriate for my age then.

I was 53 when I finally got a Ferrari, with money I earned.

 

Thanks Alex....you beat me to the punch. The only thing my family ever gave me was a hard time. When you earn your own money, you can do what you want with it.....and feel good about it.

You should consider yourself fortunate that you have a house to live (not a dorm room), your tuition paid and food on the table. If you think a Volvo is boring, you would be taking the bus if you were my kid.

 

Throw a tantrum until your dad buys you a new 430!

Don't back down! He has the money and he does not love you unless he buys it!

 

Let me talk to your dad

 

Damn, an authentic rare BT flame post -- and then retracted.

Lol.

True* story: I graduated high school in '85 (hang on, it gets relevant anyway) and during my sophomore year there was a guy in my class whose father died and left him a bit of money. I'm sure the bulk of the money went to his mother as the widow. But back in 1983 the Porsche 944 was the hot car to have. It replaced the 924, did 0-60 in under 9 seconds, and had cool factory bodywork styled after the old 924 IMSA racers. So Andrew went out and bought a brand new Porsche 944, red over black, and drove it to high school every day.

Most of us were driving VW Rabbits, early Honda Accords, etc. Basically, junk. We all lusted after Andrew's car then, but we all knew where it came from and the guy didn't become Mr. Popularity just because he had a 944. Eventually, the 944 became yesterday's news, the car got older and I'm sure it's long gone.

Moral of the story: If he'd invested that $25K (?) or so back in 1983, he'd have something worth a bit more than the current market value of a 1983 Porsche 944 with daily driver miles on it.


* I said the story was 'true', not 'interesting'. Of course you got to read it for free, right?

 

What is your prime motivation for driving a Ferrari or a Porsche? Is it the prestige associated with driving an expensive car or are you an enthusiast?

I'm guessing that since you family has "boring" cars, they probably aren't enthusiasts. My parents weren't enthusiasts either, but I grew up in the 60s in an affluent area (Malibu) with lots of exotic cars. I was always fascinated by the technology, the engineering, the style, but I wasn't in a position to afford the upper echelons of "cool" cars. I bought a "boring" car, then I bought a project enthusiast car - in my case, a Triumph GT6. I got the repair manuals for it and learned how everything worked by taking it apart and reassembling it. A year later I sold my GT6 and bought another one, then graduated up the ladder as funds would allow to better and newer enthusiast cars. I was able to finally graduate to a Ferrari in 1986 - not a new one, but it didn't matter to me.

Like jsa330 intimated in his story, there's no prestige in driving an expensive car that you didn't earn yourself. If you really want a Ferrari or a Porsche, go find an inexpensive Porsche 914, 924, or 944 - there will be plenty of time for prestigious newer cars later.

 

I've got a better idea. Print this thread out and mail it to his dad. Maybe that will serve as a wake-up call.