New job, first Ferrari?

As a 19 year old here in the UK the cost of insurance would be a show stopper. Presumably it's the same in the US?

 

At the risk of getting several "wow" responses, I'll generally agree with your take on the subject, but perhaps with a slightly different formula. I too agree that a 19 year old shouldn't sacrifice everything and put his future in jeopardy for the thrill of owning and driving a Ferrari. Not to say someone other than the OP shouldn't, but someone who confesses to being "stupid" and who seems to be pretty ignorant of the kind of Ferrari he might buy, the OP seems like a poor candidate for such a scheme.

If you're going to put ownership of a Ferrari ahead of everything in your life, you should at least start by knowing something about the car and maybe a little history of the brand.

I consider a fancy car like my Ferrari pretty much the opposite of a "must have", even though I lusted after one since I was much younger than the OP. I would suggest that a good course of action would be to accumulate enough cash to buy a Ferrari without putting a crimp on your current or future life style. In addition, some sort of emergency fund or other back-up to account for any mechanical surprises is a good idea.

Yes, I waited a long time while I was doing other things, but now I own a Ferrari. A Ferrari does not own me.

 

I'm a couple years older than you. I would say pay off your debts, keep them low, buy a house and put away some $ to pay cash. I have been nuts over 360's since I was driving them in video games when I was a kid. Ever since then I've wanted one some kind of bad. It will be my first Ferrari I know that.

I went through a phase in High School where I was going to get a job and just save $ for a down payment for a 360. That was just a dumb idea with the general cost of ownership, all the maintenance, depreciation etc.

Not to mention you would get shafted with insurance, if you could get insurance..

 

Here is my advice. I understand being young and wanting to get into a prestigious car but you are still young. You are only 19 and I would save your money. Pay off the Mustang and keep it for a while. Dont waste your money on cars now. I would wait and save. Than it could be five years from now and you are buying yourself a new Ferrari and have more financial stability. Ask yourself this, could you spend 60k on a car, live on your own in a comfortable place, not some horrible place, afford the food rent etc and still have money to go out have fun etc and at the end of the day save a bunch of money? You do not want owning the ferrari to be a stress, you want it to be something that puts a smile on your face. So be smart, save money and get yourself a Ferrari when its something you do not have to ask people on a forum if you should get it, but when you can afford it and youre asking which Ferrari should I get or you are telling us which Ferrari you are getting. That is my opinion.

 

I'll up this..

1- You need to pay off your house
2- You need to pay off at least 2 rental properties as well, just in case your primary property is hit by a tornado, and the same tornado damages the second rental... Or a flood
3- you need one million dollars in savings. Cash. No exceptions! $999,999 is not good enough.
4- you also need a 401k with one million in it AND you need $2 million in stocks at 2009 valuations
5- you also need to have a stable job as a lawyer, doctor or other $100k + job
6- your kids educations need to be paid up
7- the vacation home should also be paid in full. And, if you don't have one or a private jet card in addition to the above, then you can't afford a used Ferrari.
8- oh yeah, and health insurance... Since you'll be like 80 by the time you have the above, you'll need it for the back pain getting in and out of the car.

 

Realistically, savings and a stable job in the upper 5's to low 6 digits... Nice house and so-so car or vice versa. Priorities...

 

It is probably close but from what I have heard the UK's insurance rates are higher, I cannot say what the specific percentage is. I pay $85/month for full coverage that also includes uninsured motorist coverage and I have a clean driving record with no accidents or tickets but others pay 50% less for the same coverage. The difference, I have been told, is due to age and will drop to those rates after I turn 50 so only 7 months to go until I know if my carrier is just blowing smoke up my....

 

Why not just pay off your current vehicle and enjoy the time you will have without a car payment hanging over your head? Considering your current age/situation in what way do you think a '13/'14 GT500 will eliminate your financial burden as it will only increase and your driving record is a key component.

 

dude you need to slow down with wanting to buy stuff.

First, you're freaking 19. Are you living on your own? If you're not, that should be the first priority.

Nextly, you are nearly upside down on your current mustang.

You are just starting a job that may pay $65k to start. Why not pay off your current vehicle and then enjoy what is already a nice car for someone your age? A GT500, while not a ferrari, is still an expensive car.

A ferrari 360 may be available for $60k...but a good one will cost you $75k. With 5k down, you are financing 70k. Even at 3%, thats over $1,500 each month. Then add insurance, maintenance costs, etc. You're looking at probably close to $2k per month.

not to mention any money you save now is worth so much more at retirement...it is NEVER too early to think about this.

Lastly, when you own a 360 at 19, where do you go? In 4 years, when you're bored, what are you gonna buy? 430? 458? Upgrades start to cost real money ($100k+).

I bought a 3 year old S-class when I was 24 and a 911 turbo as an mba graduation present for myself when I was 26. The difference is that I paid cash. To upgrade either, it will cost nearly $100k and even at my current age (30), I would not want to spend that on a car....seeing that money in savings is way more enjoyable.

enjoy your mustang for a while, save your money, get stable in your career...then think about a ferrari.

 

lol. A 13 gt500 is the same thing. STICK WITH YOUR MUSTANG GT. jeeeze I never thought I of all people would say that to someone.

 

lil bit of a tangent but it'd be cool if you started a thread with pics about your job and the trains you drive. Always been curious about that job....How'd you get into it?

 

What he said.

If you really are making decent money, start thinking about how to move from renting to owning your home. Or pay off your Mustang. In any event, stop taking out big loans on new cars -- personal financial suicide.

Also, a few years from now you won't even be interested in a 360. You'll either want something newer, or (if you really are doing well) a serious classic.

 

I agree. Money saved at 19 in 401K/Roth IRA is something that would be hard to make up. Enjoy your Mustang and living debt free when it's paid off.

 

Dont get a ferrari at 19. Just dont. I had a 19 yr old gf only a few short years ago and my god you just are not ready for what comes with it. Enjoy your life andcurret car, most importantly save save save. It will pay dividends like you cant imagine in your later years. If you save enough you can still easily get one before youre 30 which is still beyond young to own cars like this. If you really want something thats fun and turns heads buy a 35k 997 porsche. Easier to handle both socially and financially though at 19 id still urge against even this. Trust me dont buy a 360 at 19.

 

Do you realize that if you compound interest at a conservative 8% (easy to do if invested properly), your $70,000 will be approximately a half million in about 25 years?
That would make you 44 years old...is it a coincidence that 44 yrs old is about the average of 360 owners (I was 43 when I got mine)? You don't have to wait that long, but think about the future. Your money working for you when you are young, is worth way more than later on when you get older.
As others said, I would concentrate on investing your money, buying a house, and have a nice cushion before you buy a depreciating asset like a car. I also used a very conservative# for the price of a 360. You will not get a great car at $70k right now, plus the figure doesn't include money wasted on depreciation, maintenance, repairs, upgrades etc. The $70,000 car is more like a $100,000 car. Believe me, I wish I had a car like that when I was your age, and I would have killed for it. But like you, I had a Mustang, and I'm happy that I didn't tap myself out when I was that young because if I did, I'm sure I wouldn't be as comfortable now at 45 years old (and retired for 3 years already).
If you make wise long term decisions (with everything, not just money...especially women), you will have a happy life when it counts. Make the money first, then splurge on luxuries. Don't mix up the order. Of course that's just my opinion. There are many people that would think I'm nuts for waiting as long as I did, but that's ok. I'm happy with my life choices and that's all that matters. I'm not going to lie to you, being a car nut my whole life made the wait torturous for me ....oh one more thing. It's not a bad thing to work your way up to a Ferrari. If you get it too soon, then what are you going to work up to in the future? What will be your motivator? will you ever be happy? I know a lot of people on the board had dozens of sports cars prior to working their way up to the Ferrari. A Ferrari is just a car, it won't solve your problems, it won't improve your health, it wont get you laid any more, etc. nobody really cares about YOUR assets. As a matter of fact, it can also have a negative affect if you are not careful how you carry yourself in social situations.
Good luck with whatever you choose!

 

When I has 19 I was traveling with the Dead didn't even know what a Ferrari was. When it came to cars all I cared about was that they would run. Listen to these folks things in life have a funny way on changing on you, and you never know what will happen in the future and what type of curves life will throw at you. Sounds like you're off to a good start though, and you'll get what you want when the time is right.

 

Idk about this last part. I know plenty of girls who get with guys for money or their cars lol.

 

any woman that would be with someone for a piece of steel/aluminum in their garage is not worth my time, even just to fool around with.

And if you use a car to get laid, you are pathetic.

Ferrari's are dude magnets more than anything else.

 

Take your time, learn about the cars, Ferrari history and the passion that drives all of us here. Then buy it when you can afford it and have a garage to put it in.

I always loved the 308 and drove a 1981 308 when I was 28. I was tempted to spend my savings on it but I am glad I did not. That year was not a good year for 308s and investing it was more sensible. But that drive fired up my passion in Ferraris so I learned more and more about them over the next several years. I joined the Ferrari Club of America and went to many cars shows just to admire the cars and talk to owners and started watching Formula 1. They say get the best car you can afford. That knowledge drove me to get a well maintained 328 rather than a 308, 308QV or the more expensive 348 and 355. When I had a garage to put it in, I finally got it and still have it after 12 years and will probably never get rid of it.

If this is just a short term thing for you to check off Ferrari ownership on your list, then you could have fun for a year or two and sell it for almost as much as you bought it for, unless you put alot of miles on it and trash it. Then your cost is maintenance, tires, etc that can be substantial. Most of us here are long term owners that can afford to be.

I would just wonder what kind of people you would attract, men and women, good and some bad, at 19 with a car like that. That could cost you much, much more than the car in the short term or the long term, once you run out of money.

 

Best advice thus far ^^^^

 

So what you're saying is that "buying and holding" the 308 would have been better for you financially than "buying and selling a series of Mercedes and Porsches" because of the depreciation that you experienced from multiple transactions AND from probably driving the cars. No kidding!

Buying and selling cars does run up the tab of car ownership as we've all learned. And if you used them (which I'm guessing you did), that would have consumed some or much of their value. Also, if you traded any of them in, you ran into the "buying at retail/selling at wholesale" financial impact that would hit your wallet.

You weren't stupid...you simply experienced the cost of car ownership that comes with buying/driving/selling cars, which is very different than buying a Ferrari and having it be a garage queen.

 

Nobody said anything about getting laid by the opposite sex, did they? Perhaps a "dude magnet" is exactly the desired effect.

 

Start out with a $25K Fcar and work up from there. Learn how to work on them without getting over your head.

As for your work, tell us / me about being an engineer / conductor. I always though the term for a train operator was a 'runner'. Yes?
No? Also, is it like working for an airline where you are in hotels all the time and home two days a week?

I live in Sonora, CA where three miles away, we have Railtown 1897, a State Park. Great musium piece trains and the setting for
dozens of motion pictures and TV shows that include the following:

MOVIES

Virginian (1929)
Dodge City (1939)
My Little Chickadee (1940)
Young Tom Edison (1940)
Santa Fe Trail (1940)
Duel in the Sun (1946)
High Noon (1952)
Rage at Dawn (1955)
Man of the West (1958)
Rare Breed (1966)
Great Race (1966)
Great Bank Robbery (1969)
Great Northfield Minnesota Raid (1972)
Oklahoma Crude (1973)
Bound for Glory (1976)
Nickelodeon (1976)
World's Greatest Lover (1977)
Apple Dumpling Gang Rides Again (1979)
Gambler (1980)
Long Riders (1980)
East of Eden (1980)
Shadow Riders (1982)
Chattanooga Choo Choo (1984)
Pale Rider (1985)
Back to the Future (1990)
Unforgiven (1992)
Bonanza: The Return (1993)
Bad Girls (1994)
Shaughnessy (1996)
Song of the Lark (2000)
Redemption of the Ghost (2000)

TELEVISION

Lone Ranger
Tales of Wells Fargo
Rawhide
Death Valley Days
Petticoat Junction (The water tower at the state park is in the begining of each show)
Big Valley
Wild Wild West
Green Acres
F.B.I.
Iron Horse
Cimarron Strip
Man from UNCLE
Gunsmoke
Bonanza
Little House on the Prairie
"A" Team
Adventures of Brisco County, Jr.