Financing a Challenge Stradale. Advice?

I got my CS in 2013 and it was a lot less than $135,000. I paid the equivalent of $80,000; private sale, Rosso Corsa, stripe, extinguisher, no stories, sensible mileage.
I paid cash, it was pretty much every penny I had available at the time, but it was a deal I couldn’t walk away from. I’ll make nothing on the car though, because I’ll never sell it. To reply to the OP, get the car you want. It will be giving you pleasure long after the purchase price has been forgotten.

 

You dog!

 

So what is your other hobby?

Watches? Wine? Guns? Sex toys?

 

Your first post reads that way. Honestly, a decision whether to finance or pay cash should be a couple day thing, not 12+ years

You are killing it in life accomplishments, go buy your car and validate it to yourself. Make your plan to buy it by the end of the year….the sex toy guy dares you….

 

I read your post and can relate a little bit. I’m 32 and bought my first f car about a year and a half ago (360). My catalyst was different - second brush with mortality for medical reasons beyond my control. My wife was also surprisingly cool about it.

If I were in your position I would wait to buy a challenge stradale. In my opinion, the general macro environment is too volatile right now for something that’s this big of a purchase relative to your annual income. When I did purchase I would finance it (as long as I could make better returns in my business or my stock portfolio with the money). It sounds like your business can do better returns so I would not sacrifice the liquidity as long as you can be disciplined about your total debt load which it sounds like you can.

Also I would buy a more pedestrian Ferrari first to make sure you’re really as into it as you think you are. You could get a 360 f1 coupe now and run it until you trade for the CS. I realize the CS and 360 Modena are totally different experiences to drive but you could see whether you enjoy the other parts of fcar ownership before you buy something like the CS.

The other thing to think about is opportunity cost of time. I definitely spend more time thinking about cars and doing FCA stuff than before and there is a cost whether it’s less time with kids or work or whatever. It’s fine; your choices are your choices but it is one more thing taking up space in your brain.

 

Late to the party and LOTS more intelligent and analytical responses/guidance has already been provided so I will just chime in with brevity.

I grew up with very little cash on hand but always worked multiple jobs and always paid my bills. so my credit rating was great but my debt-to-income ratio didn't make much sense since a lot of my income was from things like music, bartending etc. So my only option was to finance what I wanted.

As I grew up and managed my money better - as well as income increasing and some of my income being in stock shares the balance flipped. I traded a Ducati and Porsche for my first Ferrari in 2011 and financed the difference. Paid it off ahead of time - huge sense of satisfaction and accomplishment. Did the same thing with the next two cars. Then I stated weighing things and decided to sell some stock to buy the next few cars outright - my logic was simply moving a fluctuating asset to a hard asset. Turns out that was pretty smart but I won't take any credit for it

So quickly:

• Wait and Save - I am not a fan - you only live once and if you can do something enjoyable now that is not hyper-risky then do it - you could get hit by a bus tomorrow.
• Wait and put money in your Business - same as above.
• Finance - if that is what it takes and you can get relatively cheap money - and obtain an asset that is relatively stable - the payments are something you can easily absorb and overpay as well as still pay even if something unforeseen happens - AND MOST IMPORTANTLY - have an Exit Strategy - meaning (for me) if my/your entire world collapsed you could sell the asset quickly and easily and clear the loan - then go for it.
• Only other option I can think of is what i did with the stock but that all depends on the stock you have and if that is a liquid pool of money or your nest egg.

Sounds like you have worked hard and continue to work hard and are a good and decent person - it is OK to reward yourself and do something that makes YOU happy - as long as you are not putting yourself or your family at significant financial risk and have a solid exit strategy then I say go for it.

Cheers

 

1) Go to the bank
2) See what it’d cost you to buy your dream car
3) Can afford it? Jump to 5.
4) Can’t afford it? Buy an OEM F430 or 360 and still enjoy the beautiful Ferrari brand. It’s still a Ferrari
5) Buy the car! You only live once and you never know what’s around the corner. You could get hit by a bus or parasite (or whatever) making you paralyzed and never driving again. Okay, that’s a bit harsh perhaps, but you get my point.

 

Very cool. I’ve almost pulled the trigger on a transferable a time or two. Lage Mac’s and the like. I completely understand not wanting to part with them, they are never going down in value.

My grail gun is the MP5SD.

 

I'm probably just dense, but I don't see the downside/reason not to buy a CS after reading your posts with your financial details...

The car isn't likely to go down enough to cause any material financial issues for you (and that's only an issue if you need to sell it. Also insure it well for a fixed amount.).

While I don't recall you giving enough details to determine how material the monthly car loan payment would be to your financial condition, I think *that* is really the only question. If you can easily swing the payment out of extra cash flow, then do it. If you cannot, then you are not in position to buy it.

The CS is more of an asset than a depreciating tool (aka "just a car"). Buying that for cash or leveraged is likely fine if your finances can handle it (which, again, from what you typed earlier, seems they can).

 

pay the few bucks in support of the website and join F-chat Silver. Good gun discussion there.

 

I certainly am. They’re an amazing machine and I appreciate my good fortune. In my opinion they’re still too cheap. To get the most out of a CS you need to be in the right mood to get ‘on it’. It’s not an every day car for me, but give me a smooth, clear road, some sunshine and an hour or two to spare and it’s my first choice. Image Unavailable, Please Login I’ve recently added a 308 GTS and I am amazed how much I like it. I think it’s a simply exquisite machine. I should have got one years ago. Another one I’ll never sell !
As far as cars go, I think if you’re fortunate enough to be in a position to indulge your passions, then you owe it to yourself to do so. The years go by too quickly.

 

Use leverage and buy the car. By waiting what you are losing is time, meaning your youthful enthusiasm and no amount of money will get that back. You are also building life experience/memories. Which would be more exciting and memorable a 30 year old guy buys a Ferrari or an 80 year old guy? Don't wait till you are 80!

 

Everybody has different goals, resources, health and so on. My bucket of resources is the size of a KFC 3 piece meal (compared to everyone else’s 20 piece bucket) so I didn’t have the luxury of financing, I couldn’t afford to make a wrong decision playing with someone else’s money.

So I had to play the scrimp, save, and wait game. Started the first time in 2005, bought in 2014. The second time took 6 years. Paid full cash both times.

 

This! I waited too long… Got my 1st Ferrari a few years ago at 55yrs old… wish I took the plunge 20 years ago. I was into Porsche’s and doing track days so lots of cool memories there too. I don’t track my Ferrari…just a few laps for fun at Sebring last year at a Ferrari event but the car is fun just to drive around

 

If you aren't planning to buy until 2023, its a waste of time talking to someone now. I've worked in finance/banking for 33 years. I couldn't tell you what is going to happen between now and the end of next week, that is how turbulent things are now.

Generally speaking, exotic financiers want at least 20% down. Other than that, any due diligence you do now probably won't be worth spit in 6 months. Interest rates are high now and going higher. What you may have been able to finance 6 months ago and what you can finance today could be completely different.