Think it is possible?

You won't like my advice...

Wait til your career blossoms. Then you will be able to buy almost any Ferrari you want in a responsible manner.

For now, enjoy an utterly reliable and cheap-to-operate Honda or Toyota.

Good luck with your career.

 

You're young and have plenty of time. I would wait, get my school done. Plus with all the time you'll be working to pay for the car, you won't have much time to enjoy it. Stick with your M3, its a great car.

 

How about teaching the lessons for a little while and then re-assessing your current situation? In the mean time, if everything goes as planned, you would just be saving for the F355. Would you finance the purchase? If so, waiting for a while will save you a little interest. What happens when you don't feel like going to this up-the-street college anymore? That's why I would wait and see.

 

I strongly agree with the thought that you should wait. Julliard is great. In your haste, you are cutting yourself too close.

When you are a celebrated concert pianist, the world will be at your beck and call. Until then, wait, and don't expect students to pay your Ferrari bills.

 

The problem is to get a full schedule. It will take a lot of time before you have enough pupils.

 

It's not "income" that you should be using to buy a Ferrari, it's "net worth". You really shouldn't be thinking about buying any exotic car (or any other high-cost depreciating asset for that matter) until you have enough net worth so that you essentially don't care that you lose some of it to depreciation.

Until then, you should be putting all of your excess money into your education and career, then a house (an appreciating asset) and a decent start on a retirement portfolio (also an appreciating asset). With social security in trouble, escalating health care costs, the globalization of the world economy (and it's attendant negative effect on jobs here in the US), you really aren't in a position to even remotely be considering purchasing a Ferrari, IMHO.

Take my advice, and be sure to pass it on to a young, ambitious guy like you 30 years from now, when you recognize how valuable it is.

Good luck,

Joe

 

1st start paying the rent at home then if you have any bucks left over pay for your education. Then with the left over buy the Fcar.

 

its also the parent situation, If I was a parent (and Im not judging anyone here) I would think my child would be capable of living on their own financially if they could afford a ferrari.

Other then that I would take as much as you can from your future students and invest it in a decent mutual fund for around 5 years or so, if you invest 35k a year in a good dreyfus fund you would get alot more than if you kept it in some Savings account or CD at 1-3%.

Invest the money from the students and then BUY your Ferrari, plus a years payment on a decent house or apartment. Thats what I'd do

 

So you will be 18 and have a F355, while living with your parents?

Lets think about this here. $1000 a week, if you can sustain that for 52 weeks a year, is 52K a year. With that much income, the IRS will get kinda suspicious and you'll need to form a business. Oh, you won't have health insurance either, unless you pay for that in student insurance, which will not last for long. You will be unable to get anyone to insure someone at the age of 18 for a F355 for anything less than 4 or 5K a year. So, subtract that off the total. And don't forget, that is with a hefty deductable which would be 1K-5K minimum. That's just the deductable. Tires, estimate you will shell out 850-1200 a year or 7-14K miles for tires. Subtract that off the list. Estimate sub 17mpg fuel economy, estimate that per tire rotation (which are not rotated, just replaced) at ~2.00 a gallon.

So, let's try to do some basic calculations here:
$2.00 gallon
15mpg (average comes to 533.3 gallons of gas per 8K miles)
____
$1066 per 8K of miles
$1200 (tires + possibly alignment) every 8K miles

That's just hte start. So, you are in for $2266 per 8K miles, which would normally cost a civc owner:

$1.80 a gallon (low fuel, not premium)
28mpg (average comes to 285 gallons per 8K miles)
____
$514 per 8K of miles
$450 cost of tires + alignment every 24-30K miles. I'll estimate the low end at $450 every 24K miles, which comes to $150 per 8K miles.

Right ther, it is only $664 per 8K miles! Those are minimal operating costs, which do not account for any issues you might or might not have with the F car, insurance, nor the cost of the car as it is. But most likely, you will need to have several grand on the side if something should go wrong. The 355 can be a car you can work on your own, but not likely when it comes to tuning the engine and it doesn't just tune itself. Parts move, things change. It does need up keep.

Do this, if you think you can get insured, find a 355, any year. 95-99. Call up insurance agents and try to get quotes and see what you can work with. In the end, you might not get the "ok, I'm going for it" attitude, but you'll learn a bit more about what you can and cannot do. This also doesn't account for taking a loan on a 5 year to 9 year old car which is an exotic for someone with little or no credit, which you are automatically dinged FICO points for being under 30. But in the end, after shelling all of hta tout, you have a great ride, but you still live with your parents.

Best of luck.

 

Popular American culture tells us over and over again: ANYTHING is possible.

So yes, it is possible for you to have a 355.

But be patient. Starting with the F355 may be a little steep. A 328 might better suit you as a starter Ferrari. But if you're determined that the 355 is the only one for you, then I'd say it's coming to you. Just get yourself through college without thinking too much about this or you'll have an anxiety attack! You definitely should wait till after graduation, when your financial matters will be clearer and the opportunity to even consider owning a Ferrari will be more ripe.

And if you think that you're regular income isn't good enough, you can still own a Ferrari. Bartend at night and/or on the weekends or something to earn extra cash. But you've got to have all these financial scenarios in place and working for you before you consider a purchase.

 

listen to Shatten, and take all that into consideration.
If you're going to buy it try and save it all up and purchase it in cash + the ins, + 5k-10k for any problems that might arrise. You seem pretty smart and maybe you allready have some money saved or are able to get some help from parents, but you can do it. I bought an NSX 1 1/2 year ago when I was 19, and saved up and paid cash for it with some money in reserve for unexpected expenses. Only needed rear tires and oil changes since then, but with a Ferrari expect much more expenses. Insurance is going to be several thousand a year for you unless you have it as a pleasure vehicle with multi vehicle savings, and it'll still be high. Just work your a$$ off and save up and be smart and you shoudn't have too much trouble getting it. Just stay away from the h0s, they like fast cars and guys that "appear" to be rich cause they have an exotic.

Good luck.

 

You missed the point. YOU pay them rent if you are making $'s . Sit down with them and find out what is reasonable for you to cover the cost of , room , food , clothing , etc. As you will see , life is not a free ride and you need to take the right steps to pay your debt. Stay with the dream and maybe in 10-15 years you can own the 355.

 

If you buy a ferrari at 18, living at home, without a real job - you are crazy. No, teaching music as a hobby isn't a real job - sorry. Why would 25 people chose an 18 y.o. to teach their kids how to play the piano. A 18, unless you are a child prodigy, you have much to master. Unless you are making 150k a year, AND have a house AND a retirement plan AND lots of disposable income, a ferrari isn't in your near future.

You are better of with a nice 1980's porsche. 911sc, 944 turbo, or hell, a mustang.

If you are considering Juliard, I assume you live in new york. You couldn't afford the insurance, much less the payments and maintenace...(Unless your parents are loaded, and particularily generous).

I'm speaking from experience here. Had my first porsche in college - was going to do all of the work myself. Well, still needed to buy parts. 1 $1400 oil cooler later, car was for sale.

If you can't afford it, it won't be fun.

WAIT.

 

No. You will be lucky to keep an Accord with that income.

Ken

 

Hey guys--let's be nice to this kid. He can be given advice in a nice way.

To make assumptions about whether or not he is an accomplished pianist or an eligible tutor is ridiculous. Unless one of us knows him or his qualifications, assuming that he is or is not this or that is not only useless, but also a little insulting.

He asked for advice based on financial circumstances only; he didn't ask for commentary on the propriety of a person at a given age buying a Ferrari.

 

I'm basically in your situation here (young, living at home)... but I have graduated already (3 times), and all I can say is - DONT DO IT. Save up that money and when you're ready to move out, buy a house. I put a good amount of money into a new 2004 BMW 330Ci, and I am always wondering if I made the right decision. That aside though, my current goal is to save like mad and buy a house (or condo, anything) ASAP. Don't get in over your head. Congrats on the piano thing though, that's really great...I'd love to have that kind of talent!

 

I was ambitious and wanted a Ferrari back in 85. Had my heart set on a Ferrari Testarossa.

I was making decent money, and footing all my own bills. I thought I could swing the payments on it but decided to just wait and get my career off the ground then possibly buy one later. It was a hard choice but reflecting on it, it was the right one.

In 1997 I bought my Testarossa. I did not keep it in the garage either. It had 5k miles on it and and I drove it regularly the first few years then slowly cutting back on it since I purchased several other cars also.

Today I have a solid foundation financially and just recently purchased another dream vehicle. A Ferrari 360 Spider. It delivers next week.

If I had to do over again. I would do the same thing I did.

Get your career in order, get your financials in order then go get whatever Ferrari you treasure.

You would command respect from your friends as well as your parents.

 

The obvious thing missing in your whole plan is the presence of a significant other.
Once that happens (and at 18 it's gonna happen real soon), $1,000 per week pre tax won't get you to the corner of the block, let alone a 355. Where's the tax projection in your assumptions? $50,000 a year is serious taxable income, especiallly when you have zero deductions, like mortgage interest, family (wife and kids) and expenses of running your business. Living rent free could also be imputed earnings once the tax authorities discover you.

Be careful. One of the better pieces of advice in this thread for any prospective F car owner - buy it with real cash that you can afford to lose. Borrowing money on that slim income is a first step on a very slippery debt slope. Lenders like to see established income like salaries from a real job. Part time piano teachers working their way through college are not really very attractive borrowers. The collateral is not great either. Most banks really don't want to become used car dealers by foreclosing on assets that have widely fluctuating values in "have to sell quickly" circumstances.

It's cheaper to use some of your savings to rent a 355 for the day for the odd times when you really need an F-fix.