Financing

Super_Dave, with full respect, you've asked us all what we all did...(and everybody gave their $0.02) yet you failed to disclose what method did you follow for your McLaren and Porsche and why?

I think it's will move the discussion forward if you yourself disclose what route you took and the reasoning.

Appreciate it.

 

Financed through my corporation. I do a partial write-off by applying company wraps and taking it to some conventions.

Could have paid in cash, but the opportunity cost for tying the cash up in a car didnt make sense when I can use it to buy more product and make a nice 12% net return off it.

So the net profit I make using the cash more than makes up for the interest paid.

 

Super_Dave,

With all due respect, this will be the third time I've asked you what did *you* do? You asked us this question; I don't understand why you refuse to answer the same question back?

But the more interesting question is what is the purpose of the original post?

Are you contemplating purchasing another car and really don't understand the pros/cons of financing?

Or is it just pure fancy, similar to where you posted Ferrari owners are mandated to put miles on their cars?

http://www.ferrarichat.com/forum/ferrari-discussion-not-model-specific-sponsored-algar-ferrari/501177-why-so-many-low-mileage-ferraris-out-there.html

By the way, would love to see some photos of your Mclaren

 

+1 ...I did what VR did so I'm new school also. Now I can own a Ferrari until I'm an old man .

 

Super_Dave does post and start threads with a lot of questions/opinions on things, then chooses not to share his own personal experiences. I, too, am curious to see what purchasing/financial decisions he prefers and has made with respect to his vehicles, because he sure does opine on the decisions of others.

Pics would be cool, too.

 

I also agree with VR for the simple fact that financing is what works best for me. Everyone is in a different financial position and they do what they feel works best for them so there is actually no right or wrong with either choice in my opinion.

It really comes down to "it is my money not yours and I will spend it as I please".

 

Not with financing, because then you are spending other peoples money. These others will in the end pay up for all those, who are not able or not willing to pay their debth.

 

It's a contract that shouldn't be issued if the person signing it can't fulfill it! For those that can, it's not an issue.

Look on the bank note in your wallet or the credit/debit card. See that issuer? It's a credit card company or its a credit issued by the country that you live in. It's just paper with a "worth" assigned to it by a contract drawn up by central bank. You're ALWAYS spending someone elses' money and that always has a contract behind it doesn't it. Explains why currency can be devalued without your doing anything personally right?

 

In all seriousness - I beleive that there is a large percentage of people financing their Ferrari. if buying a Ferrari was predominatly "all cash" then Ferrari would not set up a financing arm... nor would you have places like Premiere or JJBest etc... me think's those who protest the most are perhaps the most guilty?... On a personal basis I would not hesitate to finance a Ferrari. I keep trying to get my wife to go along with that idea all the time!

 

As long as you do not request here to jointly sign the credit contract. If you break, then please alone and in absense of family responsibilities.

At least in Germany, if one person of a couple signs, then the other person will not be addressed by the bank, if the signor breaks. Being married is irrelevant. Thats why banks try to have both sign. If one person of the couple breaks then the bank gets on the other one. They can request the installments from any one of both.

Probably I am biased in this respect if I clearly say "Buy luxury items only, if you have the cash for it in the hand".

Working in an voluntary capacity I had to advise a number of women, who jointly with their respective husbands signed a credit contract wanted by the husband for some luxury purpose. A few years later her situation (when I come to dealing with the matter): guy gone, declaring himself broke, no payments for wife or kids, no installment payments any more, the bank approaching the woman and sometimes even declaring the full remaining credit amount payable with a 14 days term (because the guy is back in installment payments for months). We are talking about substantial amounts. And guys having a mouth large as a barn door on other days. And often hiding income .....

Of what? I never have financed a car. I am not nuts . Buying cash is, by the way, the by far cheapest way of buying. Ferrari does not offer financing because of their great kindness and altruism ...

 

Unless your money sits in the bank, it's smarter to finance. Even with a horrendous 5% APR you could be making 7% interest on your money assuming you invest in a fund that follows the S&P, more of you invest wisely

 

Jepp, stock market goes up only, just as real estate.

Everyone knows that. Future is predictable and thats why (we only?) all are rich .

By the way, gold on the long term has beaten Warren Buffet significantly . In the past. So buy (finance, of course, sorry) no Ferrari, but gold ... . You will become even more rich .

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/draghi/gc%201_7.png

 

Over the short term of course it goes up and down, over 10 years? You would be hard pressed to find a mutual fund that's not up

 

I am out of the stock market since more than 2 years. The ECB printing billions and billions of € every month. The volume of money in circulation rising and rising into unresponsible regions. And all those guys dancing around the gold calf of stocks, because it can only go up.

Farmland is very cheap here. You know what you get. And even could be self-sufficient, if you need to for whatever reason. And for the time being, EC has great subvention programs, you can get money for NOT planting something .... *looool*. That can even "finance" you a Ferrari, in order not to be off-topic .

 

i take exactly the same tact with my cars, large down payment, finance the rest. I much rather have the cash to invest in some way. in time if i don't find a good investment or business opportunity. i then payoff the car. but by that time my cash savings have grown. So i am using new money to pay off the car.And as far as everyday drivers , i always lease. I don't keep my trucks for more than 2-3 yrs. so leasing is the more reasonable way for me to go.

 

very sound argument/advice.

i think at the end of the day. If you can afford it. it does not really matter which way you pay for it as long as you can.
If you have to worry about it, a payment of any kind is too high. in other words financing as a decision , not a NEED.

 

Bingo. We've all have to be doing something right to be able to afford such great cars, we all didn't take the same path to get there

 

Paying cash means you can afford the car. Unfortunately for some, not everyone ... financing gives the illusion that you can afford the car.

 

Hi RallyeChris,

Unfortunately, I don't think we'll ever see any evidence of the aforementioned vehicles, as you and I come from a long line of folks that have requested it from "Super_Dave" in past.

I do think there is a good possibility that we'll get the question about how to finance a F40 though:
http://www.ferrarichat.com/forum/144373909-post19.html

Happy Holidays Gentlemen.
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And your post would give the illusion that you didn't finance.

http://www.ferrarichat.com/forum/142806511-post60.html

 

a second later...

(sigh)