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Average Income of Ferrari Owners in USA?

Discussion in 'Ferrari Discussion (not model specific)' started by leroy105, Jan 15, 2021.

  1. EastMemphis

    EastMemphis Formula Junior
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    May 25, 2019
    855
    Memphis, TN
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    John
    I was always moved by the line from Milton's "Paradise Lost":

    "Better to reign in Hell than serve in Heaven"

    Memphis is one of the least expensive cities in the US with such a low cost of living that we can easily afford an 8,000 sq/ft house on corner acre lot in the absolute best part of the city, a million dollar plus turbine aircraft, and also a Ferrari. My daughter goes to the best (and most expensive) private school in the area, which is less than two miles from our house.

    I'm a software engineer and if I lived in the Bay area, we'd be renting a 3-1 with a chain link fence and parking on the street. So you can reign in Hell or serve in Heaven. It all depends on the cost of living.
     
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  3. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
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  4. ttforcefed

    ttforcefed F1 World Champ
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    Aug 22, 2002
    15,598
    for the sake of this post going on and on into the "what can you really afford abyss", the most obvious answer to the OP is: "sure. go for it"
     
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  5. VAF84

    VAF84 Formula Junior
    Silver Subscribed

    I agree with this, was looking up wealth in Europe recently and came about these links:

    https://www.businessinsider.com.au/how-much-money-you-need-to-make-top-1-percent-2020-2

    https://www.connexionfrance.com/French-news/Are-you-rich-New-statistical-report-defines-what-rich-means-in-France
    "The report found that to be in this 1% in France, you must earn at least €6,848 per person per month. This is more than the amount needed to be in the 1% in Germany (€6,500), and the UK (€5,997)."

    We're speaking the same language. My work already allows for some of that and it's paying off (primarily living/working in rural areas away from home). However, been recently looking at programming, followed by maybe data science via Galvanize to open up long term work opportunities that don't require living in hyper-expensive cities, while maintaining excellent pay. Just visit the major cities on vacation and enjoy them for fun!
     
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  6. leroy105

    leroy105 Rookie

    Jan 15, 2021
    21
    #55 leroy105, Jan 16, 2021
    Last edited: Jan 16, 2021
    @EastMemphis
    For sure. Have family in SF. 2 million house, 1800sq ft house. Wow plane + Ferrari + family doing software?! Plus some BBQ. How much maintenance you spend on the Ferrari?

    The plane is a whole 'nother ball of wax. I'd love to get a helicopter, but my missus would not ride in it with me. Never swallowed those numbers.
     
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  8. leroy105

    leroy105 Rookie

    Jan 15, 2021
    21
    @Natkingcolebasket69 -- yeah, my family are USA citizens working in the EU; no free French social net on our backend! (and probably cheapskates to some degree -- but you gotta live in the right neighborhood and eat/drink the right food in these professions) -- actually the family member recently moved to Berlin from Paris and it's a bit cheaper. Also don't forget that $400kUSD of student loan debt to get one of these jobs (two F-Cars!).

    I think his time in London was even more expensive than Paris, but his time in funky Berlin is a relative bargain -- except he has to live with Germans! ;)
     
  9. leroy105

    leroy105 Rookie

    Jan 15, 2021
    21
    #57 leroy105, Jan 16, 2021
    Last edited: Jan 16, 2021
    @j34 -- that's kind of my feeling and what I think folks in Chicago who have F-Cars are at. Like 15% to 20% of net worth. You own a business...? you mention business goals and that's also where my head is at taking on the maintenance of a F-Car as a toy. (Honestly, even a $150k car for me is above 20% of liquid holdings right now -- just bought a new house and remodelled 5,000 sq. ft... that's an F-Car in and of itself! I get the feeling a California is like $4/mile in maitenance and deprecaiation or something like that. I want to to do 5,000 miles a year. Do the math. Expensive hobby.).

    Like, currently we own cars (nice German cars of all kinds; I had a Totyota Prius V for my dogs and daily driver for 6 years. Best financial car decision ever. Income has gone up though, and it would be hard to get back in a Prius V) -- never have maintenance bills. We get them CPO, keep them two or three years, the CPO rolls off, and get new ones. Just had $3,500 of warranty work on the 2016 Cayenne (transfer case and amplifier for the stereo went out).

    Personally, my cash makes way more than 3% - 4% so I'd finance the car but I try to pay of our mortgages quickly; so... yeah you start looking at a $300k car at 6% APR for whatever from Ferrari finacial... ouch, I get it.

    I've got 0.9% APR on a 2019 Infiniti QX60 (new dog car!); pretty hard to be motivated to speed pay that down. I know Infinitis don't get a lot of love, but I really liked the QX60. We swear that SUV rides like our Mercedes [my inlaws have owned a gazillion Mercedes, and after riding in QX60 bought a QX50]. Don't buy a new one! CPO all the way. I don't get a QX60 for $55k new, but I sure get a one year old one at $32k....
     
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  10. tbuff

    tbuff Formula Junior

    May 15, 2005
    628
    i'll bite. same age as you. LCOL city. 20% of NW tied up in cars. but 65% of NW is in liquid investments. no vacation house. no travel lately. no other hobbies. wife is onboard and frugal. loves cars. low rate mortgage of half of houses value.

    hope that helps.
     
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  11. leroy105

    leroy105 Rookie

    Jan 15, 2021
    21
    @tbuff You have a Ferrari? How you find the maintenance?
     
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  13. ttforcefed

    ttforcefed F1 World Champ
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    Aug 22, 2002
    15,598
    Gonna need more popcorn i guess
    Oil and tires can only cost so much. Dct failure is another story.
     
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  14. j34

    j34 Karting
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    Jun 13, 2019
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    lol. As an aside where the heck are people
    making a low risk 3-4% plus right now? What am I missing.
     
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  15. leroy105

    leroy105 Rookie

    Jan 15, 2021
    21
    @j34 Well, maybe not low risk.... we got Chinese connections (family), you can pretty much buy any widget from China and make 7% on it. I'm a big stock market weakling. I hold mostly cash, not much stocks. Self employed --- "invest in yourself"; same deal, you have $150k depreciating F-Car, with a note + maitenance of unknown.

    Do you drive your F-Car 1,000 miles a year, or 5,000 miles a year? (Funny Chinese story: guy next door has a $500k F-Car, never drives it. Revs the engine every weekend. Not what I'm looking for!).

    The DCT failure would be like a divorce in our house (regardless of cash position). I'd never get to buy a car again. ;) -- I'm back to driving Toyotas for 20 years.
     
  16. j34

    j34 Karting
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    Gotcha. Well, CPO modern ferrari should cover all the big stuff. Otherwise maintenance isn’t too expensive (relatively). You can buy extended warranty as well for piece of mind.
     
  17. ttforcefed

    ttforcefed F1 World Champ
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    Aug 22, 2002
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    Don’t take this the wrong way but you have some factors upside down if that’s the case. Nobody tells baby what to do when it comes to cars.
     
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  18. tomc

    tomc Two Time F1 World Champ

    Apr 13, 2014
    22,544
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    Tom C
    I would guess $1 - 2 K per month on my Cali - gas, tires, repairs, service, repairs, etc. Wife and I drive roughly $5K miles per year...T
     
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  19. leroy105

    leroy105 Rookie

    Jan 15, 2021
    21
    @tomc -- awesome thank you for sharing! I get there is some "lumpiness" in costs from year to year probably.
     
  20. VAF84

    VAF84 Formula Junior
    Silver Subscribed

    How many years are you financing? Why would you use Ferrari financial? The only reason to pay their APR is so that it doesn't appear on your credit report, or you can use the other group that finances with high APR is so you can stretch it 12 years. Mine was through a credit union, 5 years at 2.7, and rates as of today are 2.19% for up to 66 months.

    I'm the same age as you, probably a tier lower in self-employed income, but also in low cost of living areas so I'm still saving quite a bit and almost paid off my undergrad/grad student loans. I have an 05 F430 with mileage in the mid 20's. I don't find the cost much different than maintaining our previous high mileage Benz GL450. Only difference is we did a lot of maintenance at the dealer with the Benz, but mostly used an indy for the Ferrari. Personally, unless you're the unlucky random guy to win a trans failure, I wouldn't stress. It's literally a roll of the dice, no way to know, but unlikely for a newer model.
     
  21. plastique999

    plastique999 F1 Veteran
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    Nov 9, 2008
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    Wow then I failed ....


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  22. plastique999

    plastique999 F1 Veteran
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    Nov 9, 2008
    6,001
    SoCal
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    So funny how everyone’s views on $ are so different.
    My favorite silly topic that comes up over and over is paying for a car all cash vs financing it. Oh that one goes on forever ...


    Sent from my iPhone using Tapatalk
     
  23. tomc

    tomc Two Time F1 World Champ

    Apr 13, 2014
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    Tom C
    Some variability. Been reasonably consistent though. The real $$$$ repairs for the Cali are to the DCT (sensors) and hard top convertible. I very vaguely recall a thread where someone ruined their brake rotors and that was $$$$...T
     
  24. leroy105

    leroy105 Rookie

    Jan 15, 2021
    21
    @VAF84 -- I haven't looked at Ferrari financing at all, but I saw some forum chat they you pay a premium with them (though I do like they don't report it as having gone through the self-employed mortgage / refi/ HELOC roulette -- my Porsche notes are on me personally, but are company assets and paid by company -- still the underwriters ding me on it. In some bizarre universe, Ferrari Financing for self employed folks the APR premium they charge is worth something! Maybe not at $150k, but if you are in for a $500k car at 12 years.).

    For a $150k car, for sure, the low rates are pretty intriguing right now.... 2% on your F-Car not bad at all.

    For real, the GL450 vs. 05 F430 (awesome car BTW!), not a huge swing? That's kind of interesting. On our Porsche's by design we've probably overpaid on extended warranties vs. actual failures, but man if you toss the dice and get that one big monster failure... you sure you wish you had been paying for your warranty coverage.

    I totally agree with the trans failure roulette. I float this idea past my missus, check on the California forum, and this poor guy in GA (in like real time) bought a 30k mileage Cali [assuming similar financials] and he's telling a story about how he is out like $6k on routine maintenance and the DCT failure....
     
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  25. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    Since u see concern about maintenance I’d recommend the warranty and then get it serviced at an independent. All the crazy costs you read are divided by at least 2 with a good one.


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  26. NY-3PEDAL360

    NY-3PEDAL360 Karting

    Jul 19, 2020
    50
    I bought my Ferrari when I was 38 and I kept going back and forth if I should do it or not due to cost. Once I bought it I realized it shouldn’t have been that big of a deal since I can always sell it. Just go for it. Life is short and enjoy the money you work hard for...


    Sent from my iPhone using FerrariChat
     
  27. VAF84

    VAF84 Formula Junior
    Silver Subscribed

    2nd that as I did the same for almost two years. Even though I'm going through that again right now as I deliberate between 430 and 458. Difference is I've already lived my dream, so this is now bonus territory and there's a decreasing rate of return (happiness) with the newer model; but the 458 could easily be my last and only Ferrari. Anyway, I digress, if it's your first just do it. Then you can decide if it was worth the hype and either sell it because you lived the dream, or double down because now you're a Ferrari addict.
     
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  28. ttforcefed

    ttforcefed F1 World Champ
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    Aug 22, 2002
    15,598
    Easy one. Do 430 and then 458 later.
     
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