Financing

tell me how big your wifes breasts are first

 

If you have to finance a Ferrari, you can't really afford one.

Note some people do finance a toy because it fits their financial circumstances but they can afford to pay cash.

 

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Try a search this has been discussed several times before. You will get all kinds of opinions on this subject. It depends on a lot of variables. Personally I paid cash for mine, but then again it is a lowly 308.

Matt

 

Nothing lowly about a 308!

 

ditto!

 

I was able to tell the bank that my 308 was an RV so I stretched the payments out for 25 years. I put $500 down. This made it so I didn't have to go full time at the Wall Marts. My mom was a little upset but after I took her for a ride to the liquor store she seemed to mellow out and agreed to let me continue living in the extra room in the trailer.

I did have a little bad luck and burnt out my clutch trying to race my buddies Camaro. As soon as I settle my accident claim (from my accident at work) I can pay for the service to get the car back out on the road. Right now I have one of those battery chargers so I can listen to the radio and hang out with my girl.

But I know this isn't the road every body will want to go down. You have to do what works for you.

 

Hilarious! Made my day.

 

More clueless than snobbish!

Anyway, Red Menace, I financed both Ferraris with CapitalOne AutoFinance (the Mondial was paid off in 18 months and has since found a new home). This can be done with NO money down, and terms as long as 72 months. On the TR I got 5.9%.

Good luck with your dream.

HUSKERS Rule!!!!!!!!!

 

I have financed most of my Ferrari 348. 5 years worth of payments all up. 4 years left. Aint no thing. Im not lucky enough to pay cash as most people suggest. But im glad i did finance it, as to pay cash, the 348 would have been another 5-7 years away.

 

With low interest finance and packaging the vehicle as a company car to reduce tax (in Australia) financing makes lot's of sense irrespective of one's financial circumstances. When the cost of other people's money is around 8% i'd like to think I could get a lot more return on my own money putting it somewhere other than in a car (!)

Interestingly in Australia there are good finance package for old ferrari's e.g. 4 years plus 40% residual since the finance companies recognise them as appreciating assets.

In Australia you can even spend the equivalent of your 401K money to buy a classic car if you have DIY superannunuation.

 

pretty much my situation too. except i had to wreck the ferrari to get the insurace payment to keep up the regular car payments. when i get the settlement check (fell at work too) i'll fix the body work. but for now, i'm drivin and smilin. just wish i had a proper garage instead of the blue tarp. oh well, first things first. maybe you could roll yours down a hill into a tree and do enough body damage to pay for the clutch. then get the bodywork done when you get the settlement. you gotta think like the rich.

 

Everyone's situation is different. I will finance mine when I find it (anyone have a yellow 328 they want to sell?). I have all my cash in my business - which is paying out some pretty big cash dividends - sometimes 15% a quarter. I keep rolling my money back in. I have a cash emergency fund - which includes enough for a "major" on a 328 plus funds for house repairs etc... I have three cars now, a boat, a camper and a home. The only debt is the home.

At 8% on a note - I am still coming out ahead. And it would be paid off in 1 -2 years anyway.

I believe in not financing a toy as a "general" rule. But you have to admit, everyone has different financial reasons for doing something.

Now - if you are second mortgaged for your kids college fund, have two car notes already, and have a 50k Visa bill, then no - you should not finance a Ferrari.

my

 

Good points here.

Got to have your priorities straight. I don't know how old you are but if your even thinking about an exotic car youre making a good buck, just be smart about it and your golden in the long run.

No credit card debt.
fund your retirement.
fund the kids college funds.
pay cash for the daily drivers.
have a reserve.
OWN REAL ESTATE!

Granted I got a bit lucky the last few years but a home equity line of credit is the way to go. I recently bought a 996TT and took a 70K note out at 7.5%. But it's deductible so if your in the 35% tax bracket its really 4.875%.

Can you make that with the cash you have? Yes, you can - so it's really not costing you anything to finance and you have the flexibility of still having the cash. Which is particularly good if you own a business and dont have a conventional cash flow - you pay it back when you can.

There is absolutely nothing wrong with financing these types of purchases this way - I have done boats, cars and even airplanes - but owning something that you can write the equity out is the key.

And another piece of advice - if it starts to feel that your overextended - that you're not really comfortable but "probably can swing it" STOP

It's just a dang car anyway.

It's a lot easier to sleep at night - and I value my rest...

 

A Ferrari is not an installment item.

 

I disagree. They are physically 'low'. I also paid cash for my lowly 348.

BT

 

there is no "lowly" Ferrari.