My thoughts on financing an entry level Ferrari onudget!?!?

Oh no, didn't you get the memo?

Us poor boys aren't allowed to drive Ferraris, we drag down the image of the marque

 

I like the plan - makes sense on a Ferrari whose depreciation days are behind it. That said, I'd probably throw $50 a month at the principle just for good measure.

 

Couple of issues:

1) Major repairs- Could happen. What if you break a belt. Destroy your clutch, etc.
2) Interest only loan- Principal will come due at some point. What makes you think you will want/be able to sell the car when the money comes due?
3) What happens if you wreck the car?
4) Just because F-car prices have been going up, doesn't mean it will stay that way. Something could happen, and prices can drop, so that you may not be able to get even close to what you paid (and, remember point #3, your car may not be worth what you think if it's been wrecked, or it needs a major service). If you can sell it. (Remember when they were saying real-estate always goes up...).

I think toys should be paid with cash. When I drive it, I want no worries.

Dom

 

For me it all depends on how cheap the money is. I put my 348 on a 5 year loan with zero down @ around 5 percent. Why would I tie up $40K in cash for something that's mostly going to sit in the garage, when I can go buy a couple of rent houses with the $40K (down payment, of course) that will make the Ferrari payment?

 

+1000000

Difference is you COULD have paid the price in cash, you just used your good credit for a financial purpose. It is the folks that just think that since they can make the monthly payment they can afford it who have caused much of the current problems in real estate, and end up screwing themselves and their family when they default on the loan, be it for a car or real estate. In screwing up their credit and screwing over the lender, they really screw over everyone else who try to do the right thing.

 

Congrats on your new joy.

I would pay cash like you did. If I couldn't, I would get an interest only loan as long as I could pay it off within 3 years.

Do you have anymore pics?

 

You have one (and a very nice one at that). It matters not how you paid for it.

In the meantime enjoy every minute of Ferrari ownership

 

I think some of you are missing the point. It was about his dream and wanting to own a Ferrari. It wasn't about an investment, or paying cash or financing it or even the money. It was about a plan to obtain a dream. That takes guts and fortitude. There are people that dream and make their dream come true. And then there are dreamers.

I too was born with no money and had very little education. When I saw my first Ferrari (Dino 246 GT) at age 18, I told myself I will own a Ferrari one day before I die. Fast forward and I am 55 years old now, and I am currently shopping for my first Ferrari...chasing my dream.

 

I'm sure it's just me and the Heineken, but something seems exponentially amiss.

 

Totally with you my friend. Paid cash for my 328 ($44.5K) and have put around $8k into her
since I got her. Who cares... I have the cash, no house payment, work for myself, etc. Not
at all concerned about 'resale value' - it's all about the experience... WONDERFUL!!

Jedi

 

I don't really care about your thought process - no offense - I just think it's awesome that you followed your dreams and found a way to buy a Ferrari. Forget the naysayers; you only live once. I tip my hat to you for making it happen for yourself. Congratulations; I hope you enjoy every second of ownership.

 

Congratulations on buying the car you wanted.

Now stop being so insecure about your decision and seeking the validation of thousands of absolute strangers. Be happy, be proud that you did what you decided to do.
What anyone else thinks of your actions is absolutely meaningless and irrelevant.

 

Sorry,

First off, toys are toys. Toys are NOT investments. Toys are usually emotional gains and financial loses. They are not requirments for life nor are they requirements for happiness. They add to happiness, sure, but they are not happiness unto themselves. No one is going to die from lack of a toy (Ferrari).

Toys are Money Pits. Money Pits are never financed but are always paid for IN CASH. I could have owned my Ferrari 20 years ago if I was ....... crazy (for lack of a better word at the moment) enough to finance.

If you cannot afford your dream (Toy) IN CASH, it was not meant to be. Never should a family's potential well being be risked for a toy. That to me is selfish and highly irresponsible.

My 2 Cents (EURO)

 

Not always true. I bought my Shelby 16 years ago for $15,000 and financed half of it at 6% over 24 months. At the time, buying a Shelby was something I had always wanted. It was, as you say, a toy. I wasn't thinking in terms of an investment, but I knew it would atleast maintain its' value over time. I sold my Shelby Last week for over a $100K. Now I'm looking for a vintage Ferrari that I believe will maintain its' current value and have some fun. I may need to finance part of it, if I get out of control...lol. But I am having a great time chasing my dream, so I really don't care. I want to own, drive and enjoy my toy, while all the while protecting my money. That's how I see it...and it has worked for me many times over the years.

 

So if you add the cost of one Alpaca to the cost of the car and finance the beast you can actually pay down the principle pretty fast!
And knit yourself a nice Alpaca sweater for those fall drives...
And yeah, I think it is fine to get a stable priced Ferrari in the method described.

BT

 

I think it's a home equity loan for 30 years, interest only at 6%. That would be $200 a month. If you do plan on selling the Ferrari, and paying back the loan make sure the pre-payment penalty has expired. 2-3 years.

 

RAMMER,

I understand you completely. Did you steal your example from Googling me? Other than the teacher part, you described me almost to a "T" except most of your middle paragraph. I just do not agree to ever finance a “Toy” of any kind. Too many things can go wrong and you (worse your family) wind up on the street. Overcautious…. Maybe. If you are looking for happiness, it comes from within. It cannot be bought. Toys do make life more enjoyable thou, granted.

Your middle paragraph starting with "How much money do some people spend.... " is very real and very sad IMO. If people are wasting money on a new vehicle every 2-3 years then IMHO they do not need a Toy. They are too busy keeping up with the Jones and do not need the added responsibiliy that comes with maintaining a Toy. My DDs are a 94 BMW 520 (NOT a 520i, but complete w/rust package) and an 02 VW Polo. They were paid for in cash and both piece of junk run great to this day.

When I graduated college all I had was several thousand in college loans to my “credit” and a (good) job in the US Army taking home $442.25 every two weeks. You ain’t getting into a Ferrari even in 1983, on that kind of a paycheck. I am still a civil servant and bet I make less than the average owner on this board by a bunch. Today, with saving till it hurt, investing fairly well and NO financing anything except my house, I am very close to my first major financial goal. And my Toy (81 GTSi) is free and clear. Still have my 8yr old tube TV..... You guys remember those?

I just grew up where loans were absolutely abhorrent unless you made them, not took them. The ONLY time taking a loan was acceptable was for a home, a needed daily driver (1st Car only and start saving your F&%%ing $$$$$ for the next one), etc.; in a word, “necessities.”


GSJohnson,

Yep. I could have bought a friends pristine 1967 Shelby GT 350 (like them better than the 500’s) for $8.5K when I graduated in 1983. I would have NEVER used that car for a DD nor would I have sold it. Today? Hmmmmmm. Nah, probably not. Your point is taken and it does happen, but not all the time and probably less than 50% of the time do people make money on Toys. Honestly, I am VERY happy for you. You got on the right side of the wave. But today Muscle car prices are dropping, others are loosing their shirts as their financed “Investment Grade” Detroit Special is leaking $ faster than a New Orleans dike leaks water and I am just waiting and MAYBE I’ll be able to get my Snake yet, and although today I could easily afford it, I won’t do it on credit. If is was meant to be ……

 

But you can still do it the smart way and get some property at the same time.and have someone else pay your loan

 

Dreams need to be worked for, not financed in the new dream that you won't be financially ruined by your dream.

 

Well,

If your really want that car,
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My Ex GF is up for grabs...? (GF = Girl friend)
She has 10 million in the bank,,,
she is koko as coco puffs,,,
and,,
too bad her kid is a 22 year old jurk....!

ha ha

otta there,
Edwardo
Image Unavailable, Please Login

 

Hi Guys this is my first post here. I have been reading all the great stuff for a few weeks now. Great stuff.
Rammer you are right on as stated above. People waist so much money on little stuff (which just adds up over time). On a new car, that does not make any financial sense to me what so ever (unless you are buying a $18k toyota camry or a $14k civic which hold their value well). Then they wonder why they haven't gotten closer to their dreams. They just tread water in the ocean of their finances.

I strongly believe if you can't pay cash, you can't afford it no matter what it is (unless it's a house and then you need to buy under your means unless it's just a great investment that you just can't pass up). Even if you can pay cash you need to ask your self can you really afford it? And to me just because I can make the payment does not mean I can afford it. Because I don't think I can afford the over all price plus depreciation plus interest.

That being said for me I am looking to buy my first Ferrari at the age of 33. I can afford to pay cash now but I am going to save my cash and use a home equity loan because the rates are so low right now. It's an interest only ARM but if the rates go up I will use my cash to pay it of or I will bounce it around on my credit cards that have very low to zero percent % rate. You don't ever want to have to decide between eating, paying the house note, or repairing your Ferrari. If you are not financially capable your dream could turn into a real nightmare fast.

Here is how I buy all my cars. I shop and shop and shop around online until I find the best price for what ever it is I am looking for. You have to get the best price. You have to make money on the buy. That way after you use your car for, a year, you can at least sell it for around what you have in it + -. So in the end you basically drive a car for free. Car's are the worst investments so you just have to minimize your losses.

 

If you want it, and can afford it, buy it. Cash or credit makes no difference, in the end we dont really ever own anything anyway, were just caretakers for a while at best. Buying a Ferrari is about the craziest and most rediculous purchase anyone could make. Most have not done well as investments, maintainance is uber costly, and major repairs can be catastrophicaly expensive. No offense to anyone, but paying cash for a Ferrari sounds almost as stupid as financing it. But in any case, you dont ever need to have anyone else second guess it for you. If the plan you put together works for you, then its on your shoulders. You shouldnt ever need to come and ask anyone around here if something you did makes sense, you just open yourself up to criticism by those who feel they are smarter than you. Save yourself the pain. Face it, owning an expensive toy is stupid. Once you figure out how to BS your way around it and can convince yourself that its not, put whatever plan you dream up into action. If you can convince yourself that you can afford it, your already smart enough to figure out how to purchase one. I learned long ago that most never were able to own one until they simply told themselves that they could.

But if your really on a budget, you can save yourself a much greater headache as well as a load of cash by investing your time in learning how to maintain and service the car yourself. Invest the major service expense in tools and youll pay yourself back in spades. If you figure an average of $7000 to carry out a full service on a 308/348/355 Ferrari, you could outfit your garage very nicely, including a car lift, for that amount of money. Thats probably the best investment you could ever get out of the deal, and the sense of accomplishment will be priceless.