Budgeting around the dream... Worth it?

If you have to think about that much and crunch the numbers like that you can’t afford it. Sorry just being practical.


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2005 was the last year of the 360, so unsure of what you mean regarding the 2008 model?

I would strongly discourage against borrowing money for a luxury purchase, such as an exotic car. This really needs to be a cash purchase with a reasonable cash balance set aside for repairs and maintenance.

Others may chime in and disagree, but I belong to the 'if you can't pay cash for it, you can't afford it' mentality when it comes to toys. And let's be honest, a Ferrari is certainly a toy - not a need.

 

I think you'd enjoy the car until you realized you didn't enjoy the rest of your life.

 

I’m hoping this isn’t a serious post.

If it is serious...the answer is “no”, don’t buy a used ferrari given the financial data you provided. (Not even close imho)

 

it might be tight but well worth it.

 

I agree with this

 

Until her first repair bill, then it will quickly go from "tight" to "unsustainable"

 

Figure out your comfort level of "pain" if it all goes south.

Calculate those numbers out.

If you can live with the worst possible outcome, then go for it.

If you can't, then be true to yourself and hold off for now.

 

I would NEVER take money from savings and spend it on any toy. My advice would be to take some of that extra disposable income each month and put it away in a separate account to purchase the car outright in cash. Then always keep a substantial sum on hand for upkeep. Even if you had to take out a small loan to purchase the car, as long as that any point you are not upside down, and always have that cash available. Because they will need it.

 

Borrowing to purchase a Ferrari that you keep for 10 Plus year = good sense... borrowing to keep a car 24 months - not so much. Most of the Ferrari line up bottom out depreciation wise around 10-15 years old. however at that time - repair cost creep in. Owning a Ferrari means you will have to repair the car at some point... they are not perfect, and require higher mtns frequency that a lot of other cars. If you pay cash for the car great - however know that the car will likely still depreciate a bit more .... so its a balance of keeping cash invested at a rate faster than depreciation.... its a cliché but buy the best car you can... its cheaper over all.

 

Don't listen to the detractors and the stupid "if you have to ask, you can't afford it" BS. Some of us can roll out of bed and decide to buy a new exotic that day, while it takes some of us YEARS to SAVE up the capital. Buying my first exotic took 9 years of dedicated saving. I'm currently in year 5 SAVING for the next purchase. It sucks that 22 year old youtubers have better cars than I do, but moping around about it doesn't get me any closer.

Good luck to you!


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I financed my first Ferrari (348) in 1999. I don't regret it even though I only kept it one year. But you need to keep some of your savings aside for repairs, or the car will sit in the garage until you save enough again.

On the other hand, it's always better to do some investing, then take the proceeds to buy your car.

For example, after the 348 I financed a new Corvette - $50,000. At the time, I could have bought a condo for about the same monthly payment, even if I never rented out the place. After 5 years, the Corvette depreciated about $30,000 and the condo appreciated about $200,000 (this is in southeast Orange County CA). I don't know how old you are but it might be better to invest right now, then pay cash for your Ferrari from the proceeds of your gains from investments.

 

A dream is a dream! Analysis paralysis kills dreams. Go for it! Leave the worries for your accountant. btw, cute car (Abarth).

 

I’m in between everyone here, you should not dump your savings, that is there for a reason. You also shouldn’t purchase without some form of down payment which would make your payments within your means. Below is one thought for income diversification

50/30/20 rule
https://www.investopedia.com/ask/answers/022916/what-502030-budget-rule.asp

 

You only live once....go for it.

 

I agree with you only live once. But be aware that some expensive repairs can be lurking

 

What is your advice for him on how to budget a costly repair bill into his equation? Get another job?


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He does what the rest of us non-wealthy (obviously not your case, good for you) do, you budget and adjust. When I had a $13,000 repair bill a couple of years ago, had to dip into savings and make it up by going light on maintenance (and mix in some top ramen lunches) the next year.

Worst case? You let the car sit until you have the money for the repair. A 360 isn't a depreciating car at this point.

But that is for the person to decide, not me, not you. It sucks how some people are so swift to dismiss someone else's dream. The OP isn't talking about buying a new 488, a 360 is less than a lot of pickup trucks or German sedans these days

 

More accurate data can be obtained from dealers as to how people buy their Ferrari. Most people here pay cash.

The repair costs can be insane. Clutch repair $8k, Annual oil change $1,500.

I’ll let others make recommendations but I would set aside $20k as a repair budget. Otherwise the car may just be sitting in the garage.

Ask your insurance company for a quote now so you don’t have a surprise

If you can’t afford a repair bill of $15-$20k, don’t buy the car.

 

He is using ALL of his savings to purchase the car....

He asked what people thought given specific financial numbers and his current stuation.....do you think everyone would say "Go for it"?

 

I feel more secure paying cash for toys, one of the reasons it takes me so long to buy stuff. With an 850+ credit score, I can easily finance $100k, that's just not for me.

Now on the "if you can't afford a $15-20k bill don't buy the car".. That one is a different proposition. I would imagine that the vast majority of 360 owners have never had a 5 figure service bill (sorry 355 owners....LOL). So maybe there is a 3rd party warranty out there for major failures.

 

For a 20+ yr old exotic? Do tell.

 

op has vanished?

 

Have no idea, would make some business sense to offer very specific coverage for major failures only....Brits for sure would sign up, they seem to love warranties.

The OP was logged on this morning fwiw