Asking rich people for advice

unfortunately, that would mean losing his suspension somewhere back there, because he said where he lives the roads are very poor...

 

All for cash, but I’ll add to this discussion that sometimes a person can be too conservative in the pursuit of their automotive dreams. I’m my instance, I simply waited too long to pull the trigger. I built up my businesses, built up my resources; and waited until I was 45 to get my first. In retrospect, I waited 15 years too long. As much as I love ownership, and for as much passion and pleasure it brings me, I frequently kick myself for not simply getting a loan and getting in the game much sooner. YMMV.

 

It’s always easy to second guess yourself when you have done things the right way by being patient and saving the money. Why? Because things worked out well because of your patientce.

Had you been more. aggressive in your pursuit of a car, things could have easily gone south. You just don’t know.

 

Agreed. Too short, take a chance.

 

There's a balance between sensible planning for the future and living life like there is no tomorrow.

Just recently found out about a loved one that has likely terminal cancer. This person says "no regrets" about delaying a career for 10yrs to backpack all over the planet during his youth, but he did eventually have to settle down and work his ass off to save for retirement.

Not to add a morbid tone to this thread. I think you should live life in your 20s, but does it have to be a 458? There are plenty of other fun cars at lower price levels (with cheaper suspension parts) that can be had sooner with less on the table. Also, "learn to walk before you run". I never even thought about a ferrari in my 20s, financing or otherwise. It would have just been too crippling.

Sent from my SM-N920V using FerrariChat.com mobile app

 

Tons of truth in that statement. Seldom do we spend much time considering the counter factual. Certainly there’s a proper balance between overly conservative and not nearly conservative enough. Again, were I giving advice to my 30 year old self, I’d say let it rip...put $50,000 down and borrow the rest. After all, obligation creates ambition.

 

So true it would be stupid. I thought about doing the same stupid thing about your age. I’m glad I did not. Waited about 35 years later when kids are out of college and it was easily within my budget.

As far as rule if thumb how much to have saved before making the purchase? Everyone will have a different opinion on that for sure. I am comfortable making the toy purchases if they are less than 10% of marketable liquid assets. All toys together have to stay below 10% of net worth.

That’s my rule.


Sent from my iPhone using FerrariChat

 

That’s a good rule and frankly 10% would be a bit high for me.

 

My first comment was sarcasm.
However, the “buy all cash”, I never understood...you’ll be waiting a long time and missing out on a ton of precious moments.
I agree, be ambitious with your purchase. I bought with risk and for me it paid off.
If I followed the 10% rule, I’m screwed


Sent from my 16M

 

Truth.

Good rule that I follow. Getting a boat would blow right through that 10% lol.

 

Wow.

60 posts is a lot for this often-seen question.

I should also point out that anyone who is 23 years old and is still living with his or her parents is not headed in a Ferrari-ownership direction.

Matt

 

10% of net worth for a car? For me, 5%.

 

++1. I looked at his post again.

For me, all toys less than 10% of Liquid Assets.

10% of Net Worth is too high for me, 5% would be my limit.

 

No one needs a Ferrari. I don't even insure mine. If I lose it I'll be just fine.

 

Crazy to buy a Ferrari unless you have the means to finance it. You are young, like your ambition, work hard, earn loads of cash, support your own life and lifestyle then go for it.

You may regret in later life burdening yourself with debt for a deprecating asset so young.

Just my advice.

All the best with your future.

 

my rule was I had to pay cash +$20k liquidity "just in case". I think it's different rule for everyone.

 

OP. At 23 my fiancé and I moved out of our parents house with a handful of cash we saved while living at home (apartments are for people who like to throw away money), and bought a house. She worked and finished her degrees, while I worked up the ranks at the FD, and started a side business. I bought my Ferrari at age 34. So it took 10 years for me to get where I needed to be to achieve the goal. My point being, you need to walk before you can run. Work hard, have a general outline on how to create a stable life and earn extra $ and grind away. That's how everyone on here got to where they are...working hard and being smart with money. You'll get there, just be patient and play your cards right.

 

My dad used to say the best two days of your life are the day you buy a boat and the day you sell it! LOL.


Sent from my iPhone using FerrariChat

 

No, 10% for all toys. Cars, boats, planes, vacation homes etc...

And I agree it is a little high.


Sent from my iPhone using FerrariChat

 

So if one is worth $5 mil, then you have only $500k for second homes, cars, etc? Seems tight


Sent from my 16M

 

I wouldn’t put a house in that - house would be considered and investment. A car? Depreciating asset.

 

I'd argue that the richer you are, the higher the percentage you can allocate to frivolous things. Because the rest if for serious things, and even increasing the standard of living these needs are somewhat limited.

 

I restricted my car (s)to 5 %. Property should be an investment and does not count.

 

The opposite would be true. If you are worth $1B, and have a higher % e.g. 20, that would be $200MM on frivolous things. One that has a $500MM net worth and spends 10% would be spending $50MM on frivolous things. However, Both individuals could comfortably spend $200MM. As such, when one gets richer, the lower the percentage of wealth is spent on all things in actuality.