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Do You Own, Lease or make payments on your Ferrari?

Discussion in 'Ferrari Discussion (not model specific)' started by vref, Jan 12, 2004.

?

Do you _______________ your Ferrari?

  1. Own (paid in Full)

  2. Lease or Company Leases

  3. Make Payments on

  4. None of your Business

Multiple votes are allowed.
Results are only viewable after voting.
  1. vref

    vref Karting

    Dec 18, 2003
    214
    1 Hr North of Housto
    Full Name:
    Jim
    Poll

    Do You Own, Lease or make payments on your Ferrari?
     
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  3. 4sfed4

    4sfed4 Karting

    Dec 22, 2003
    231
    Looks like owning outright is in the lead.

    Question for the financial folks......

    Wouldnt it make sense though (even if one had a large amount of disposable cash) to use someone elses money to make such a purchase? The car is still going to be a depreciating investment is it not? If one can borrow say $150,000 on a home equity line for 4%, then be able to deduct the interest further lowering the effective borrowing rate, wouldnt that make more sense than using ones own reserves? Even these days, your own $150,000 can be used to easily make more than 4% return.
     
  4. Husker

    Husker F1 Veteran
    Silver Subscribed

    Dec 31, 2003
    8,983
    western hemisphere
    Own mine outright. Either way, I wouldn't feel comfortable buying an F-car that is still depreciating any measurable amount. As an example, on the 308, 328, and 348 series, the depreciation cycle has leveled off. So...your only real expenses are maintenance costs(overblown), gas, and insurance.

    With any luck, you can sell the car later for about what you gave for it. Certainly an inexpensive hobby once the "big money" for the purchase has been spent. Not the same story on the 355's and newer. However, you would think that purchasers of those cars are fully aware of the depreciation hit lying ahead and probably don't care. Suits me, but I couldn't stomach it.
     
  5. parkerfe

    parkerfe F1 World Champ

    Sep 4, 2001
    12,887
    Cumming, Georgia
    Full Name:
    Franklin E. Parker
    Never finance a toy !
     
  6. Jerrari

    Jerrari F1 Veteran

    Jul 24, 2001
    5,458
    Michigan
    Full Name:
    Jerry Wiersma
    Always use OPM if you can find a better use for the cash earning a higher return.
     
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  8. paulie_b

    paulie_b F1 Veteran
    Consultant Owner

    Jan 13, 2003
    6,805
    Jupiter, FL
    Full Name:
    Paul Bianco
    happy to say that I own it.
     
  9. acw

    acw Karting

    Nov 3, 2003
    122
    Lease versus buy has always been an interesting issue. I think the right answer depends on many factors. The only way to proceed is grab a spreadsheet and compute the total cost of ownership in both cases, while considering as many factor as you can including tax savings, investment opportunities, how long you think you'll keep the car and all the other small numbers that add up.

    One interesting point about leasing is that it is better to start by shopping for lease companies and then find a car. The dealer offer may not be the best one.

    I have always owned my cars but next time I may lease. Will see....

    AW
     
  10. Ken

    Ken F1 World Champ

    Oct 19, 2001
    16,078
    Arlington Heights IL
    Full Name:
    Kenneth
    I agree, especially for an older car that is holding it's value. Buy a 308 for say $28k (it's a nice one). Finance it with an equity loan so the interest is deductable. Sell it again in 5 years for say $25k. Not counting expenses, you've driven a Ferrari for 5 years for $3k.

    Now a $220k Ferrari is a different story; after 5 years you'll be out a ton of cash so if you couldn't afford to pay cash, you probably can't afford the depriciation either. Unless you're so rich you just don't care! LOL

    Ken
     
  11. mondial85

    mondial85 Karting

    Sep 9, 2003
    168
    Indianapolis
    Full Name:
    Casey Slattery
    Own. Gives you nice sense of pride in ownership.
     
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  13. f355spider

    f355spider F1 World Champ
    Rossa Subscribed Owner

    May 29, 2001
    17,317
    USA
    I own both my cars...I am rather averse to debt, especially for a "toy" as Frank Parker says. When I get the 355, it will be purchased outright as well.
     
  14. FL 355

    FL 355 Formula 3

    Nov 3, 2002
    1,665
    Ft Laud
    Full Name:
    Frank Lipinski
    "Cash and Carry"
     
  15. formula1joe

    formula1joe Formula Junior

    Nov 3, 2003
    436
    Atlanta, GA
    Full Name:
    Joe Bennett
    I own my outright. It's a comforting feeling sliding your car side ways through a corner and know if you hit something and total the car you still are not paying on a car you can not drive.
     
  16. 62 250 GTO

    62 250 GTO F1 Veteran

    Jan 9, 2004
    7,732
    Nova Scotia Canada
    Full Name:
    Neil
    Owning you car gives you a "get out of trouble" card if you need quick cash.
     
  17. Ron328

    Ron328 F1 Rookie
    Silver Subscribed

    Mar 10, 2003
    2,584
    Willamette Valley, Oregon
    Full Name:
    Ron
  18. MARQ

    MARQ Formula 3

    Feb 9, 2002
    1,924
    East Coast US
    Full Name:
    Marq
    #16 MARQ, Jan 12, 2004
    Last edited by a moderator: Sep 7, 2017
  19. flyingboa

    flyingboa Formula 3

    Nov 27, 2003
    1,555
    Italy/India
    Full Name:
    Eugenio
    Own, but in my wife's name...
    Ciao

    Eugenio
     
  20. Inter911

    Inter911 Rookie

    Dec 1, 2003
    15
    I've always gone by the rule that if it depreciates then lease it but if it appreciates (or has the potential to do so during the time of ownership/use) then purchase.
     
  21. t88power

    t88power Formula 3

    Feb 19, 2001
    2,396
    Puerto Rico
    Full Name:
    Ernesto
    Never tie up cash in a toy!!! INVEST your cash and earn a return, instead of letting it sit idle in a car.

    Ernesto
     
  22. MARQ

    MARQ Formula 3

    Feb 9, 2002
    1,924
    East Coast US
    Full Name:
    Marq
    I agree...I use money bags instead of twine when I'm carrying cash in the Ferrari...
     
  23. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    15,899
    62 250 GTO, if u have ur car paid off you really cant get to that cash unless you sell it whereas if you finance it you still hold ur cash in your own account...did i miss understand you?
     
  24. jimpo1

    jimpo1 Two Time F1 World Champ
    Silver Subscribed Owner

    Jul 30, 2001
    22,707
    Dallas, TX
    Full Name:
    Jim E
    What Frank said.
     
  25. F328 BobD

    F328 BobD Formula 3

    Mar 17, 2001
    2,327
    Southlake, TX
    Full Name:
    BobD
    Ditto here.
     
  26. SrfCity

    SrfCity F1 Veteran

    Nov 1, 2003
    9,842
    Orange County, CA
    I own. Nothing like not having to continue to pay on something, especially if it depreciates. I save equity lines for things like realestate deals(appreciating assets)I can turn quickly, that is if I need to. Ideally I try to use my own $$$ for most everything.
     
  27. rob

    rob F1 Rookie

    May 22, 2002
    3,709
    Vt
    I too agree with Frank's statement. You want to EARN interest not pay it.
     

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