The financial reality of Ferrari ownership...

Trent seems to be talking good experiential sense to me.

I'm 41 and have paid the mortgage off on a suburban house (typically £300 in the UK) - big deal eh? it's dead money, dead asset unless you are dead, then someone else get the money right.

I earn a decent wage ~£40K and so does my wife so we are ok, but gotta save for the kids higher education now in the UK.

I should have bought a Ferrari earlier then I did at 35 - a 308 GT4 - loved it and just moved on to a 360.

I think I'm a case no.2 of the OP post, but I couldn't or rather wouldn't own an F-car (or P-car for that matter which I also have) if I didn't do most of the work myself including on the 360.

People down the street probably think bad things about me but if asked (which I never am) how I can afford a quite new Ferrari and would have them think about how much they have wasted buying "normal" cars over the last 20 years. In terms of net financial position with regards to car ownership over the last 25 years I have probably not lost very much money, and yes cars can be investments. I bought a VW bus in 2003 for £4k and sold it last month for £30k - there are ways to get a return on cars but they are typically specialised like the VW bus.

As far as looking after your kids, well I say the same to my Mum, but I figure I'll try and look after my kids and spend my money at the same time. I plan to have an apartment with a bed in, a laptop and a supercar and maybe some clothes when I'm old.

Happy ownership, all cars are luxury items and cost lots. Enjoy them whilst you can.

Great thread.

Lee

 

Why are you guys paying off you mortgages? Bad place to "save" money assuming you have a reliable income.

However, you may use some equity to buy something.

 

Peace of mind...and because I can .

My house can plummet in value 50%, won't effect my sleep one bit...

 

you can buy a 360 in the 60's that's been driven(and that's what you want because it was used and all the bugs worked out)if it sit it will be a problem(most of the time),buy it drive it,don't let it waste away in the garage either way you will lose money it's a car,but your driveing a ferrari,500-800 a mth is not bad for a ferrari and you can still live.think about it someone buys a 200,000 car lets it sit and not enjoy it,to me that's a waste,I bought mine to drive not sit,resale who cares I drive mine and enjoying the hell out of it everytime I start it up,check back with me in a year could be a differant story but either way I had a hell of a time enjoying my car.take care of it and it will take care of you,It's only money and you can't take it with you and you only live once so enjoy it.



bought mine 2000 360/f1, 22,000 miles,1 owner dealer inspected,30k service at 21,000 car needs not a thing,low 60's,the owner just needed cash,deals are out there you just need to find them

 

I would rather put 100k into a car that I can enjoy vs the stock market where you get a piece of paper and have a good chance of losing money.

Buying more sh** makes me get up earlier and work harder. It's not for everyone...

 

Exactly, I have a mortgage so I can raise money when I need to buy a supercar or investment property etc. I pay "interest only" on the mortgages on my investment properties because in 10-20 years I'll pay off the loan with a few months wage. Although in the UK banks force you to pay off capital these days and make it harder to get interest only loans.

I bought my 360 cash because I had it from selling on other cars, but I'd like to get some of it's capital on a mortgage so I can continue moving "up" the car ladder.

Something is at the back of my mind though... when petrol gets really expensive the value of supercars may plummit... usage of cars has already been seen to have reduced so petrol may become more expensive as it makes less profit ? petrol has got up 50% in the UK in the last year or two.

Lee

 

Buying more sh** makes me get up earlier and work harder.....me too...heheheh
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Makes perfect sense. With that income, in a high expense area, you definitely are not rich. You are on the right track to do very well. Keep up the good work and good luck with the business. It is a great ride.

 

I don't like debt & wanted to free up my paycheck for other things. And like you said, can always get a HELOC if anything comes up.

 

I always felt the trophy home was the last thing to get (the hot trophy wife the first of course ;-) ) as it is most often the trophy wife that wants it the most. While the wife is often the most expensive thing a man can acquire (hehehe), the big house I argue isn't far behind. It's a very illiquid "investment".. and in these times I prefer to be as liquid as possible. Besides taxes and downward pressure on home prices with increasing interest rates.. I'll take the car for now and our modest home. I don't believe the NAR hype..

I have found my 360, now that most of the big things are taken care of.. is no lass affordable than say an M3. My boxster having depreciated 50% of its value in the last 3 years has so far led my 360 in overall cost. I think if you want it to happen bad enough.. you can find a way to make it happen.

 

100% agreed

 

But, he has net worth right? His house that is all remodeled?

 

This is the key to many things. Consume so you will produce.

 

The answer is do whatever you think is best for you. If you can swing it and you want to swing it - do it.

If circumstances change - sell it to convert to cash or buy another one to add to your stable.

Life is too short to fret. Ferrari does not sell cars, they sell a dream. An experience. A life full of visceral passion.

carpe studly stallions

 

This perspective is so "on point." If vehicle manufacturers could solve for failing rubber (and to a large extent plastic) parts on a vehicle without increasing cost, weight, or ride harshness, then cars would be much easier to maintain and enjoy. It's the rubber parts everywhere that ultimately degrade in quality and effectiveness over time no matter how many miles driven - you cannot escape this fact. Therfore, if you can learn to perform all maintenence on these types of wear items, your pocketbook will thank you.

 

I also agree with your assessment.

But if you could have waited just a few more days, you could have replied on the 10 year anniversary of the last post!!![emoji16]


Kevin

Sent from my SM-G930P using FerrariChat.com mobile app

 

$1.25 a mile is what you need to put aside, that's what I have spent on the last 76,000 miles. 11 sets of rears for example, it adds up, but its still worth it.