Kinda Personal

Dr. Tax, loan me some "energy"..............LOL!

 

Speedy!

 

Hey padner.....you at the Cafe???

 

Sure am you coming?

 

Sure, a dollar on the dollar...

 

Well, in a large way, post count does matter.

You see, there is still the same social procedures of getting to know a new circle of people and gaining trust first, especially before people will be willing to offer 'personal' information.

An analogy: say you, a young man, walk up to a table of older gentleman you don't know sitting at a country club. Without introducing yourself and becoming acquainted, the first things you say cannot be about rap music or offering a business venture. Weary of scams and disinterested in rap, they will reject you. They will not care for what you have to say afterwards. You have to be in the "in-group" before you can do that.

This board is the same as making friends in person. You have to gain a certain amount of social acceptance first to talk about sensitive or personal issues, and have some sort of credibility to earn it... whether it be the cars you own, your occupation or 'connections,' paying for your membership, being entertaining, or most importantly here at Ferrarichat, your passion for the marque. When you offer one of these to add to the community, you will be offered acceptance from the group.

Typically, it is non-owner young men who ignore these patterns and are rejected by the group. It is not arrogance or pretense, but common formality. Luckily for these bold young men, this forum is full of patient people like Dr. Tax, with a lot of experience and wisdom to pass down. Hopefully my breaking this concept down reflects that patience.

 

Well said.

 

DING DING DING DING!!!! Post of the Year!!!!!

Thank You.

Dom

 

DrT got a Miata!! WOOHOO!! Welcome to the club.

I just love really fun cheap things. No, not like THAT.

 

"Son, that's no kid...that's a cocktail waitress in a Dolly Parton wig,
Yea, aint' she cool? That's the kind I like!"

 

Well, yer right, I guess I do like those cheap things too, just a little....


Just a little trashy that is...
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"Honey will you wear that "Special Outfit' for me?"
"*Whip crack* Eeeeyow"

"Walk like a Camel"
Southern Cuture on the Skids

 

IMO, if you can't pay cash for a Ferrari, don't buy it. Others will disagree with me, but as far as I'm concerned, if you have to finance it, you can't afford it. That applies to everything in life, with the exception of houses. How are you going to pony up $2000 for an unexpected repair if you're worried about where your next $500 car payment is coming from?

 

I've done it, but it puts a big crip in my Bar Tab, fo' sure!

 

WOW, I have been called a lot of things. I mean a whole lotta things, but I ain't never been called patient.

Dr "Blushing" Tax

ps That was a great summary and should be part of the subscription instructions. I can't tell you how many old farts that I have talked to privately who say that they don't post much on left F-Chat because they get tried of all the comments from younger participants whose, uh, enthusiasm gets the better of them.

When I was 16 or so, me and my buds spent most of our spare time getting thrown out of motorcycle shops. Back in those dinosauer days, the owners actually worked in their stores. They all knew that we didn't have any money, except for maybe a Honda 90 that we brought over time by having a paper route. The shop owner would typically put up with us asking stupid questions like "what is a bolt?" for only a little while before tossing us out on our ear. But over time, we learned to be slightly less obnioxous and the owners would not kick us out quite so fast. Then, finally, an owner would adopt us and let us become part of the scene.

Perhaps, in a very strange way, this is also happening on F-Chat. For all you young folks out there in WWW land, I'd like to say that there are some extremely knowledgable people on this board. These folks have already forgotten more than you will ever know about Ferraris. But being old farts they tend to be cranky. But if you give these folks their due, ah, the stories you'll hear. When you are young, it is impossible to understand the wisdom of the comment, "Shut up and listen." Hopefully as you grow older, though, this wisdom will become apparent to you.

 

How about "mental patient"??????

ROTFLMAO! You aren't goin' to Cali, Doc????

 

$500 a month? Damn. I wish!!

 

the best advice is that since a Ferrari is basically a toy one should have the cash to buy toys...but if you make a great income, then financing one shouldnt be too big a deal. I was making 6 figures before i even thought about an F car, because you have to have the means to maintain them and fix them and that is not cheap, and if your state charges property taxes on cars, then there is that added expense.

 

Are you suggesting that leasing a $300K car is cheaper in the end than owning? I'm curious to see an example scenario of lease vs. buy? Anyone done this?

Regards,
Rob.

 

in maryland, we have to pay sales tax on leases and if we decide to buy the car at the end of the lease, we have to pay tax on it again!!!!!!

 

I thought all leases had tax on the monthly payment. And if you buy it after the lease, you pay tax on that amount. No way getting around it. Maybe some states are different?

 

I'll try and give an abbreviated version. Generally speaking, it is less expensive to own than lease, assuming you do not place a monetary value on the time it takes for you to broker a sale at the end of your lease.

There are two major components of cost with a lease - the interest rate and the residual value.

All things being equal, interests rate tend to be higher with leases than with purchases.

Residual values are a guessing game, but over the long term, the leasing companies win. They peg a residual value that is lower than the actual and profit from this. This is how leasing companies stay in business and make money. If this wasn't true, we would not have leasing companies. It is true that over the most recent few years consumers have beaten the leasing companies on residual values as the used car marketed collapsed when compared to historical trends. This is an aberration is the longer term trend, however. Leasing companies carry insurance to protect against this so over the most recent few years it was actually the insurance companies that paid for this pricing mistake. They will of course pass on the added expense in higher premiums, forcing the leasing companies to adjust their pricing and residual analysis. And the cycle continues ...

Very short leases where the tax effect becomes a very large frictional cost and in cases where the seller absorbs marketing or commission costs to sell their car at the end of the lease would change the above economics. There is probably a breakeven analysis in here somewhere that says if your expected holding period is X years or longer, you should buy instead of lease. Otherwise lease.

Paying cash vs financing is another arguement. I disagree about always paying cash. That answer is dependent upon opportunity costs. If you can earn a return on your investments that is higher than the interest rate on your loan, take the loan.

Edit to address tax question: With leases, you pay for the tax associated with the value used. If you lease for three years, you pay three years worth of taxes (pro-rated based on selling price-residual value). If you buy, you pay all the tax. Where you get caught is if you buy a car, pay all the tax, and sell it quickly. You can't get back the tax you paid even though you do not own the car anymore. If your holding period is short enough, this penalty will offset the savings that are generally associated with purchasing. The laws may vary by state, but I think it looks something like this in most places.

 

Nice recap. Close to what I was thinking.

 

In Massachusetts, there is a way to save on sales tax when purchasing a car outright. If you have a trade-in (e.g., your old Ferrari), and you buy your new car from a dealer, you only pay sales tax on the difference.

So, in a broad sense, in the above scenario, you only pay sales tax on the depreciation when purchasing outright. Exactly the same as leasing.

- Jon

 

Leasing allows allot of people the opportunity to own the car for a couple of years that they could not otherwise afford, that's why 75% of new Lambos are leased. What was told to me by Symbolic Motors, San Diego.