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Discussion in 'Ferrari Discussion (not model specific)' started by mr. green, Nov 3, 2003.
Good Idea, Let's start with you!
Being able to pay cash for a Ferrari, and actually doing it, are two different things. Dumb move IMHO. Always use OPM for these things, and INVEST the cash in positive ROI projects.
"Being able to pay cash for a Ferrari, and actually doing it, are two different things. Dumb move IMHO. Always use OPM for these things, and INVEST the cash in positive ROI projects."
Well said Ernesto.
I also think if you are looking at a new Ferrari, it will be better to at least be ABLE to buy it with cash. If you are SURE you will make more on investing the cash, then invest the cash and borrow the money. The Ferrari is most likely a depreciating toy.
Those of you who sent me a PM should check your PM's for a reply.
Thanks Kds. Interesting to see, I would have thought the C-class to be way lower (in the States I would think so) - is the M class one a typo?? A missing '1?' It seems really low, isn't that the retail price in Canada for an M-class?
Personally as an aspiring Ferrari owner, this has been an interesting thread. Quite honestly, I wouldn't expect to buy a new Ferrari unless I'm pulling in something >$500k per year, or have a substantial savings. Even then, now way I'd pay cash. There are too many other investment options that are much better than a depreciating asset.
This is the main reason I started my own company last year, best thing I ever did.
That "is not" a typo actually..........
I remember reading in an article that the rule of thumb is your income/2.5 through income/3. (It was in a Maybach review in R&T).
(Or take the car price and multiply by 2.5 and 3 to get the range of how much you should be making).
If you make 30k/year, then you should buy a car in the 10-12k range.
The article mentioned that most S-Class owners have a gross income of around 200-240k/year for an 80k car. A Maybach owner would have a gross income of about $1 million/year for a 335k car.
I'm not sure how accurate this is, but I gauged it against myself and my car purchase and its accurate for me and I wasn't even thinking about that. For me, it was more of a comfort level that happen to match that statistic.
Assuming a new 360 goes for around 150-175k. Based on this formula the owner would have an annual income of around 375k-525k of comfortably affording this car.
I read the target salary for an NSX owner is $250K. So I would imagine a ferrari would be closer to $500K for a 360 and probably more for a 575.
I also remember reading that the target for a Mercedes S600 was someone making around $400K.
if u live in an expensive part of the country with wife and kids and you dont want to cut corners i would guess one would need to make seven figures or more gross...
all depends on what one wants.
A well known Ferrari Dealer,when asked by a journalist,"who was the average Ferrari buyer?",answered:
"He is a gynecologist,making about $50k"
Dealer: " a week"
I heard that story in the mid 80's.
Lord... I want a Ferrari so bad, but jeeezzzusss.... That's a lot of dough to be making.
If a gynecologist is making 50k a week he's looking at alot of poon.
Heh, my mom is a OB-GYN and I can tell you it is not like that anymore.8(
More interesting to me, what do you pay per mile to own your Ferrari? I ask, only because I wonder if my case is similar to other people's, and if not should I be getting different model F-cars?
Excluding the entry price, my cars cost about $2.00+/mile to maintain. The entry price was high, but the maintenance and upkeep is the tough one when you don't have time/talent to work on the cars yourself.
Since my TR was new, maintenance and repairs alone have amounted to more than 1/2 the initial price of the car with 43K on the odometer, and the 355 is at 1/3 with 22K on the odometer.
Oh, and I eat jujubes for dinner to afford my F-car habit; the things some of us do to own a Ferrari...
$200K is plenty--you just have to already have your house paid off, and 1 years salary already in the bank (e.g. liquid)! But in this case, you won't be getting a loan.....
So if you had $40,000 to put down and was making $80,000 a year no one would give you a loan on a $80,000 car?
Dear Mr. Green, Everyone has something to hide, and if they say they don't they are lying. Do not respond to this message because I just learned about the ignore list. You will be on it asap. RDS
My rule is:
DO NOT BUY ANYTHING UNLESS U CAN BUY IT WITH ALL CA$H!!!
u can't afford it, don't buy it!
Allan made a great point.. far better ways to tie up large sums of cash, or have we forgotten what real estate can do for you? I know someone who can get me a return of 10-12%/yr without loosing the principle but it takes it to make it. Real estate is still far better.
For those who say, if you can't pay cash, don't buy it, what a great way to spend... buy it outright and then let it depreciate. Have fun saving for a life that might not be there tomorrow!
I think the issue of pay cash/payment plan came up already a while ago, it's matter of what fits you would be my guess. Some don't like to have anchors of any form (I'd put myself there). Also the depreciation is relative with new F-cars since the price doesn't go down that quickly along with the 2-year waiting lists. I know a few who after a year or so of owning a new f-car sold it for the same amount(or more) spent on it
We all make choices, just because somebody doesn't follow somebody else's choice I see no reason to tag them as [whatever name calling here]
The really expensive part is not buying the car new, its eating the depreciation when you sell it in a year or so. On a 575 or something like that, it makes the service costs look like a drop in the bucket.
That makes the cheapest Ferrari to own a Lusso or Daytona, or something like that. Or a short ownership of a car that commands a premium like the 360 spider.
Pick anything in the price guides with an up arrow instead of a down if your not rich enough to burn up tens of thousands of dollars a year.
Remember that when you lease a car....all you are doing is pissing away money. You never get any of it back! It's just like paying RENT on an apartment or house. You never see any of the ca$h back!
At least when you outright OWN something like a car or a house, you can do whatever you want with it. In the instance of a car, you aren't restricted on how many miles you can drive it a year....to even being able to have the pleasure of saying that you OWN a FERRARI, instead of leasing one.
Leasing cars is just like renting apartments or houses. a waste of money