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Discussion in 'Ferrari Discussion (not model specific)' started by sudz1234, Aug 11, 2006.

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  1. sudz1234

    sudz1234 Karting

    May 5, 2006
    181
    #1 sudz1234, Aug 11, 2006
    Would you tap money off your house to buy a Ferrari. The loan is deductible and you don't have to make a principal payment if you don't want to. Example: 125k loan interest only would be 807.00 a month.
     
  2. testarob

    testarob F1 Rookie

    May 13, 2006
    2,504
    Debary, Florida
    Full Name:
    Rob
    #2 testarob, Aug 11, 2006
    Sure I would. But then again, I get cash advances off my credit card at casinos too.
     
  3. adamr

    adamr Formula Junior

    Aug 16, 2002
    720
    Chicago
    #3 adamr, Aug 11, 2006
    oh boy.... everyone's going to tell you to use the search.

    i dont think you can afford it. just my $.02
     
  4. Dom

    Dom F1 Veteran
    Owner

    Nov 5, 2002
    8,489
    #4 Dom, Aug 11, 2006
    So you pay just the interest for a few years. Meanwhile, your car depreciates in value from 125k to 80k (or less). How exactly are you going to pay off the principal when it comes due?

    Dom
     
  5. sparta49

    sparta49 F1 Veteran
    Owner

    Mar 3, 2001
    7,804
    LA
    Full Name:
    Frank
    #5 sparta49, Aug 11, 2006
    "Sir, a Ferrari is not an installment item."
     
  6. mgtr1990

    mgtr1990 Formula 3

    Mar 30, 2005
    1,580
    Naples Florida
    Full Name:
    Martin Graham
    #6 mgtr1990, Aug 11, 2006
    Do it the equity is lying there you cant take it with you if your wife wants a new kitchen then your in trouble otherwise use the equity its like a loan only you pay yourself and write off the interest
     
  7. jabramson

    jabramson Formula Junior

    Jun 3, 2006
    502
    San Diego, CA
    Full Name:
    Jeff
    #7 jabramson, Aug 11, 2006
    Wouldn't do it. It would own you instead of you owning it. Wait until you can - it's a whole lot sweeter!
     
  8. sudz1234

    sudz1234 Karting

    May 5, 2006
    181
    #8 sudz1234, Aug 11, 2006
    If you buy a 360 today for 125k it's not going to drop 45k in 2 years. I think in 2 years it should be worth around 110k. If the depreciation is 15k over 2 years I can make an additional payment to cover the depreciation. Then when I sell the car pay off the loan.
     
  9. ylshih

    ylshih Shogun Assassin
    Honorary Owner

    Mar 21, 2004
    20,439
    Northern CA
    Full Name:
    Yin
    #9 ylshih, Aug 11, 2006
  10. Spiderguy

    Spiderguy Formula Junior

    May 21, 2006
    462
    Full Name:
    Harry J
    #10 Spiderguy, Aug 11, 2006
    FYI, you can only deduct up to $100K of home equity interest expense. After $100K, you have to do "interest tracing" to determine deductibility, that in your case, would most likely be nondeductible.
     
  11. BOG

    BOG Formula Junior
    BANNED

    May 30, 2006
    380
    #11 BOG, Aug 11, 2006
    Get 430 and use your house as collateral. Or get 25 credit cards and take $10K cash advances on each.
     
  12. sudz1234

    sudz1234 Karting

    May 5, 2006
    181
    #12 sudz1234, Aug 12, 2006
    I would like to pay off a business loan with that money. That will save me 1200.00 a month.
     

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