Why do I keep my Ferrari? Who's with me?

You are thinking with the wrong end!

 

Best reply!

If someone gave me $30K I'd buy thecarreaper's 308 GT4 before even considering letting it collect dust in some bank's vault. But I'm a car guy and an enthusiast so I'm not hung up on dying with the most money. Die happy and fulfilled

 

There are a lot of men out there that bust their hides and never achieve such a vehicle as a Ferrari. There are numerous folks that can say they are "investors" via their company stock purchase plans (Wal-Mart, Lowe's, Home Depot, etc.) However, they could only dream of being able to afford an exotic, and if they ever do get there, they will be too old to enjoy the thrill of it all. There are numerous investors out there, enjoy the fruits of your labor while you can!

 

This says it all.

 

Think of the money in your car as a special "safety reserve." As with any business, you should have some money put aside in case things don't go your way. Thats how I view my testarossa...

Nice car, and I like it. If I ever lost a major tenant, and couldn't make a note payment...I just sell the car. Now I can have this safety net in the form of 50K+$ in the bank, or parked in a car. I choose the latter...

Might I lose some money if I need to sell quick, or fix something...? Sure. And thats the cost of owning the car...

Note that this philosophy only works when you pay cash for these toys...

If a building comes along that I just "have to own," I sell the car. When its up and running, I buy a nicer car as a replacement, then just repeat the process...

 

Another perspective:
Ferrari (and other collector car) ownership is in large part a hobby. If you equate it to skiing, golfing, scuba diving, sailing or the like, it might make more sense. I doubt you would suggest giving up a rewarding hobby because it costs money. Hobbies, interests and passions are part of life. Having said that, we move in and out of hobbies throughout life.
It sounds as if a Ferrari might not be the hobby for you right now if you don't have the passion. As for me, I will undoubtedly give up racing as I get older but I will never lose my passion for cars and for Ferrari in particular. Good luck.

 

if the amount of money you have tied up in your f-car is really bothering, then by all means sell it, and invest the money in your business.

when you find youself in a position (obvioisly some time in the future) where your cash surplus covers unknowns, and an exotic "toy", then buy another f-car, or labmo, or.......

in my case i'm comfortable enough to continue acquiring.

 

cars are not investments, you should not own it if you think the money is best spent elsewhere. Life is short, take vacations, buy toys, eat good food, enjoy your time here. Its like contemplating what you could have done if you married a different girl, or went to a different school, or took a different job. Enjoy everyday, if doing so requires selling the ferrari and putting the money elsewhere then thats the right choice.

 

Sorry to hear....I agree with you.

 

Just borrow the $30K, use your car as collateral. If you say you can double your money within a year, well then your loan will be paid off in 6 months and you get to keep your car. What's the problem ???

 

NICE! Wow, hate to interrupt the financial paranoia thread, but I love those pics. I want a red 308GTS and I want that road.

(OK sorry for the hijack - let's get back to worrying about bank balances.)

 

its a 308 not an enzo.

 

Forget "dead"! I want to own a Ferrari while I am still young enough to drive it the way it was meant to be driven. It won't do me much good when my eyesight, hearing, and reflexes are shot. They already are not quite as sharp as they use to be, so no point in waiting too long. I'm willing to adjust that time to some extent, as I own my own business, too. Sometimes you do have to reinvest, or keep a cash reserve for the unexpected. On the other hand, I'm keeping my eye on the target, the Ferrari.

I have a theory. If you want something bad enough, you'll find a way to get it. Even homeless people have belongings.

Cheers,

Michael

 

Wow, where is this road?

 

Count me out - as far as I'm concerned cars should be valued strictly by the smiles and my 308 is very high smilage!

 

Here is the road...http://www.maryhillmuseum.org/loops.htm

Peter,

The point of my original post was what many have tried to say here and that is...Live life like it may be over tomorrow, you never know when it may be!!

 

Sometimes it is the right time to sell your Ferrari. Sometimes it is not. I can personally relate. I bought my first Ferrari, an 87 328 GTS after my business was really taking off. I waited long to buy it, ensured that I had my investments taking caring of and made sure I could pay cash for the car. After 2 years of enjoying the car, my wife got sick and needed a transplant. I immediatley sold the car in favor of keeping it and selling off some of my invesments. Part of the decision was logical (needed immediate cash) and some of it emmotional (I didn't feel right owning a Ferrari when my wife was in the hospital). It was hard for me to sell the car (and I took a loss on it since I had to sell it fast).

But, in the end I make the right decsion. In fact, I felt better, after selling the car. Now, almost 2 years later, I really miss my car and am looking to purchase another one in the next few months. Since I did not sell off any of my investments, these investments made out handsomely and have made me back the amount of money that I sold my car for!

Theo

 

But, if you have your own business, it's a neverending cycle... i.e. any time you're not working is time wasted because you're not making money... so, do you give up all your spare time? Also, a spouse/SO costs a lot of money -- is it worth keeping them? Children -- big drain on wallet... Why by a name brand when I can get a no-name for a lot cheaper? No extra frills, only necessities because to get the frills means wasted money... where do you want to draw the line?

If the line is somewhere where you keep the Ferrari, then so be it... if it's not, then sell!

I have this argument with myself a lot... I COULD become a consultant, but I'm afraid knowing me, that I might let it consume me and I'd be too concerned about "if I'm not working, I'm not making money" and then refuse to take any vacations or any kind of time off since I'd be losing that money...

 

<tangent>

Sorry to sound cruel and heartless, but I wish I could have taken advantage of that situation!

</tangent>

 

You pose an interesting question.

One that has many answers depending on the individual.

In your case from the facts that you provided my advice to you, is SELL.

There are those that MONEY is not an issue and have a Ferrari because their station
in life requires it like a trophy wife, mistress or girl friend. You mentioned money
- so I don't put you in that class.

Then a Ferrari is seen by some to be the key to the lock for social status be it as simple
'fast cars fast women'. You see the Ferrari as obstacle.

I don't know how long you have owned your Ferrari but I imagine you did not always see it in that light. Once you were enamored by her, but over time, her expensive needs have driven
a wedge in your relation with her and all you can see is dollar signs.

I had a 1979 Porsche 928 that I purchased used from a VERY RICH individual.
In 2 years before I sold it to a friend I literally paid for a trip to Stuttgart
for parts she was almost costing me $500 every time I drove her. The local
Porsche Dealership lets try this part (philosophy) and as long I would pay they would just keep swapping parts. (My friend wore out 2 sets of tires before he sold it and bought a 911).
You don't mention repairs or the prospect of repairs. The 308 could easily cost you $10,000
in repairs at a dealer and you would still have a $30,000 car.

I have had mine only 6 months and plan on having it to the end (mine not the Ferrari's).

In the 70's I bought a Cessna 150 Aerobat my income was $10,000 a year. I learned to perform the maintenance owners were allowed to do. During the fuel shortage we flew to
Oshkosh twice and on the way home we were paying for 110 mph and was being passed by 55 mph
cars on the road below. That coupled a 2000 hour major overhaul on the engine we sold
her. We regret to this day.

There is NO LOGICAL reason to own a Ferrari. Passion has been given.

For me it more than ego, but some would say it's ego if they don't know me.
The Ferrari is just a continuation of my self. I am unique. Money is NOT the end it is
the MEANS to the end.

But if all you see when you look at your Ferrari is a pile of money (or a bottomless pit
that sucks your money) then sell it before some thing major happens and you have to take a loss.

 

Wow...the reaction to this thread sure indicates that a lot of us are entrepeneurs and that a core issue related to F-car ownership has been touched. Of course, entrepeneurs know that one can not in general predict rate of return on capital over the next years and that the true monetary cost of the car must factor in the difference between the cost to buy and return on sale plus a lot of other factors that are hard to predict. F-cars have beat return on the S&P500 over several recent periods depending of course on the model but that is not why We buy them. Bottom line is that this car is a luxury, an expression of a passion, a reward for hard work, a source of satisfaction, and, as far as the loyal members of this forum are concerned, a source of great comraderie and comfort, especially on those cold and icy winter days when we can not get out. These factors are priceless as long as we take care of supporting our families first, live decently and plan for our old age wisely.

 

Driving my cars makes me smile. I'm wrapping up my second week of vacation and will put about 1100 miles on the 308 in that week (are you paying attention Glassman?). I'm calm, relaxed and rested. Much better than spending $10k on a week at a nice resort with my wife.

Call it therapy or something else, owning them calms me down and gets me away from the office.