stupid question, but

They do.

 

You're right - it is a stupid question !

Mainly because of the amount of times it has been asked before

Here is a typical thread

http://ferrarichat.com/forum/showthread.php?t=100252&highlight=ferrari+finance

 

.........
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debt propelled dude, unless lotto comes up its between me, GMAC, Ford Credit, GEC finance u name it, i got it

 

I financed my 355 GTS for a very simple reason: the highly progressive taxes we have in Sweden.

I run a small-ish business. It's growing fast and is very profitable, so in principle it's not a problem to take out enough cash to pay for the car. However, if I am to take out 85k (USD) net from the company, it'll cost the company 235k in total. The difference between 235 and 85 is all tax.

However, if I just take out enough salary to cover depreciation + interest (which is 4.3% p.a.), the company instead retains cash which can be used to finance production, marketing, investments in staff, etc. instead of being spent on taxes.

With our tax system, we have to ignore principles such as always paying for toys in cash. It would be a waste of money to do otherwise.

AG.

 

I wish I knew enough about the economies of Scandinavian countries (Sweden, Denmark) to understand why you are charged so much in taxes on vehicles. It's really a shame. The first time I ever heard about it was while reading a post on another forum by a fellow who was going bankrupt trying to pay off a VW Eurovan which ended up costing almost $90k.

 

Denmark does charge extortionate vehicle taxes (which is why Danes drive diminutive cars, and why it's front-page news when an F-car is sold) but in Sweden vehicle taxes are quite ok, probably in support of Volvo and Saab.

What I was talking about was income tax, my point being that if I want to purchase an 85k car, my company must pay me a gross salary of 235k to give me a net salary of 85k. The difference is all income tax.

That's why it's a lot cheaper to just finance the car instead of paying with hard-earned cash where I live. It just reduces the tax bill.

AG.

 

Pay cash.

I'm sure a lot of guys borrow their way into Ferraris, but -- unless it's to buy a rare, collectible classic Ferrari at a great price -- it's a matter of borrowing your way into a lifestyle you can't afford.

(I've heard the argument that someone can take, say, $100K and invest it somewhere to make a 'guaranteed' 2&#37; in excess of the interest rate on the car loan. If THAT extra $2000 before taxes is real money to you, you need to buy a more affordable Ferrari. </soapbox> )

 

About 90% purchased them outright.

 

There are cases where outright cash is the right answer and times when financing will work well too.

It all depends on your situation, the amount of $ and what else you could do with the $ if you didn't pay cash.

As a matter of course, most people simply pay cash and get it done with. A Ferrari is a "want" rather than a "need", and the overall conception is that you don't finance a "want." But again, if you can make more money investing the cash than you can financing the car then that's the way to go.

For me, I'd do cash up to $50-60K and look at other options after that...that's in my little world =).

 

I paid cash but a 308 is relatively inexpense especially when you consider an Enzo cost $1,000,000.

 

Look out for the REPOST police

 

Well.........if you insist.

FREEZE!! HANDS OFF YOUR KEYBOARD!
SHOW YOUR POSTING LICENCE AND REGISTRATION.
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Personally, I think the number is much lower than that.

 

Agree. Maybe 50%. Alot of people here finance them.

 

Sure it's an old topic to the forum, but new to us newbies here

I did read the other long thread on this, and there's absolutely no right or wrong answer on how to pay for your Ferrari. Depends on your $ situation and attitude towards debt / investing. Personally, I'm one of those conservative types who likes the peace of mind living debt free. So everything was paid off quick, house, cars, etc. But for me to pay cash for the 355 would've taken a few more years...why wait? Figured I would finance half of it and buy it now to enjoy it while I'm still a young 35 (I know that's all relative too...) Life is short, if the important things are taken care of like the house, retirement, kids, etc. then finance that Ferrari and enjoy the heck out of it NOW.

 

why would anyone slap down cash on a loosing non liquid asset like a car,
that is depreciating every year is beyond my understanding.
but hey to each his own... )

Buffet school of investing )

 

next I'm going to hear,
well I have too much cash... )

 

Why would you pay interest to a lender to dig yourself an even deeper hole with that depreciating asset? Because you couldn't afford it in the first place.

I guess we've been through this - as soon as you start rationalizing a Ferrari you end up with practical car that isn't a Ferrari (where are those NSX guys when you need them?)

 

I would bet that the newer models are more commonly financed, and the older (classic) ones are bought outright. First, because of the price tags. Secondly, because of the type of buyer for each vehicle. The buyers of the newer models are generally making bigger dollars, and will continue to do so. So they don't mind financing it. It is okay either way, but for me I paid cash because I hate having a finaznce company tell me they are purchasing insurance on my behalf since they didn't receive something from my insurance agent.
BT

 

I bought mine, with one of those new-fangled Zero-Principal 10 year Zeppelin Loans, that the banks have been soooo eagerly handing out in newly printed money, to make the economy look healthy.

...deserves a...

 

I financed mine.

 

ditto, interest only one year maturity, cash down once a yeary to bring down principal keeps payments low and my cash liquid, the only way to go. I view the interest as a price for liquidity, works for me.

 

You're right. Years ago 90% cash sales was probably low. Now I bet it's way less than 50.