Looking to buy first ferrari - Ferrari Life
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post #1 of 53 Old 12-04-2012, 09:50 AM Thread Starter
 
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Looking to buy first ferrari

Hi.

I am looking to see if I can afford a new Ferrari. Here's my financial breakdown:

My wife and I just came out of an Army program, which payed for our medical school fees (I am a Podiatric Surgeon, She is a Psychiatrist)

I have absolutely no debt, and neither does she. I already have a house paid for that has been bought in cash, so no mortgage.

We are both 31, no kids.

I am signing a contract for 185,000 dollars first year + sign on bonus, with room for expansion, and my wife is signing with a 3 person practice, which will pay her around 120-130 so our gross will be around 310-330K between the both of us.

I went to this website, http://cgi.money.cnn.com/tools/house...useafford.html

And apparently I can afford a mortgage of 7500 dollars a month "conservatively"

Anyway, I looked at a few Ferrari's and the California is around 4400 per month, which is still below the 7500 dollars a month quoted before, and by doing this, I can still put a good amount of money in retirement and live comfortably.

Is this too unreasonable? I saw somewhere where the average buyer of a 458 Italia (5500 a month) has a salary of 500-600K. Would this be living beyond my means?

Seemingly, I can afford a new Ferrari with no problems, but can anyone give any suggestions?

Can I REALLY afford a Ferrari? or a 4-5K a month payment?

Also, I would like to be using it as a daily driver to go shopping, go to work, etc.
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post #2 of 53 Old 12-04-2012, 09:53 AM
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Welcome. Sure.

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post #3 of 53 Old 12-04-2012, 10:02 AM Thread Starter
 
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Welcome. Sure.
Sure as in?
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post #4 of 53 Old 12-04-2012, 10:40 AM
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Sure as in?
Yes, the numbers seem to work.
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post #5 of 53 Old 12-04-2012, 10:43 AM Thread Starter
 
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Yes, the numbers seem to work.
What about maintenance?
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post #6 of 53 Old 12-04-2012, 11:09 AM
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Maintenance is free on the California for 7 years if it is a 2012 or later.

Taz
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Present: 575M 135171
Past: Dino 246 GT 02984, 365 GTB/4 14009, 308 GTS 25125

Every day I look around, and if nobody is shooting at me, it is a pretty good day.
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post #7 of 53 Old 12-04-2012, 01:03 PM
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Shadow,

Sure you can.... at the moment. But a better question is should you?

By that I mean, do you want to buy a new car or will a used one suit you just as well? The differeence is that with a new one you'll pay a huge sum in depreciation. Is that money worth being the first owner?

My banker told me they'd lend me $250K for a new car. We're much happier with a used Ferrari and paying less than a quarter of your estimate each month. The difference pays for three weeks in Italy each year. For us, Ferrari + Italy = Double Happiness > New Ferrari

Also, what other financial factors are involved? Don't have kids yet, but will you, and if so, when?

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post #8 of 53 Old 12-04-2012, 01:30 PM Thread Starter
 
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Shadow,

Sure you can.... at the moment. But a better question is should you?

By that I mean, do you want to buy a new car or will a used one suit you just as well? The differeence is that with a new one you'll pay a huge sum in depreciation. Is that money worth being the first owner?

My banker told me they'd lend me $250K for a new car. We're much happier with a used Ferrari and paying less than a quarter of your estimate each month. The difference pays for three weeks in Italy each year. For us, Ferrari + Italy = Double Happiness > New Ferrari

Also, what other financial factors are involved? Don't have kids yet, but will you, and if so, when?
I get no cost dental and medical care for my family until I retire, (up to 4 people). and around 70K in the bank.

I will have kids not this year, perhaps the following year.
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post #9 of 53 Old 12-04-2012, 02:47 PM
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Welcome to Flife.

So I get where your at, but not why you want a new Ferrari? What cars have you been into and have experience of? Did you have a favourite Fcar growing up or a Ferrari moment? Will you have time to use the car for more than just commuting, driving holidays (Cali) or track days (458) maybe? or is it a long promised reward for success? I think you need to have a clear idea of why you are buying an Fcar before you get to worried about the mechanics of it.

You seem to be some way down the line of a very well thought out life plan so it seems a little unrealistic to just jump into a Ferrari unless it represents a lifelong goal that you can now realise or a history with cars that has lead you to the pinical - Ferrari. If either of these are the case, then I would say do it and enjoy. But if you want a Ferrari because it tells everyone else you have arrived then there are cheaper ways to do that.

Which ever it is, I'd get bedded down in the new job, decide what you really want the car for, test drive a bunch of them to identify the model for you and think about whether its the right move and fits in with your lifestyle.

Good luck.

Cheers
Michael

Current Fcars: 360 Modena
Gone but not forgotten: 360 Spider, 575M, F430.
Other stuff: '71 Holden GTS Monaro, '80 BMW Alpina B9, '74 Porsche Targa, Caterham, MB CL500, Land Rover Discovery.
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post #10 of 53 Old 12-04-2012, 03:08 PM
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575 +1 !

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post #11 of 53 Old 12-04-2012, 03:18 PM Thread Starter
 
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Welcome to Flife.

So I get where your at, but not why you want a new Ferrari? What cars have you been into and have experience of? Did you have a favourite Fcar growing up or a Ferrari moment? Will you have time to use the car for more than just commuting, driving holidays (Cali) or track days (458) maybe? or is it a long promised reward for success? I think you need to have a clear idea of why you are buying an Fcar before you get to worried about the mechanics of it.

You seem to be some way down the line of a very well thought out life plan so it seems a little unrealistic to just jump into a Ferrari unless it represents a lifelong goal that you can now realise or a history with cars that has lead you to the pinical - Ferrari. If either of these are the case, then I would say do it and enjoy. But if you want a Ferrari because it tells everyone else you have arrived then there are cheaper ways to do that.

Which ever it is, I'd get bedded down in the new job, decide what you really want the car for, test drive a bunch of them to identify the model for you and think about whether its the right move and fits in with your lifestyle.

Good luck.

Cheers
Michael
Well I will work Monday-Fri, around 50 hours a week.

A Ferrari has been a lifelong goal of mine. I always thought I'd only be able to afford a used one, never a new one.

My dad is a lifelong Porsche 911 driver, as he is on his 6th Carrera I believe, with the new 991 Reincarnation. I went to many events with my dad and his Porsche.

We were invited to a social gathering at his boss's wedding. When the wedding was over, the groom pulled up in a Red 1990 Ferrari F-40. He had just bought it for their honeymoon, and it was only 2 years old.

Most beautiful car I had laid my eyes on.

Ended up putting a poster of it on my wall, from my grade school years all the way to my college years, and during my medical school years, It was my background on my labtop LOL

Owning a Ferrari is an emotional thing for me... And there's a special something when you drive it.

I've test driven 911's (I actually own a 2002 Carrera S that my dad used to drive), BMW M6's, and an Aston Martin V8 Vantage, but when I sat in the California and I put that top down...

Unexplainable joy!

I never went into my field thinking I would ever be able to afford one, and now that there's a possibility I can, I think i'm a little too excited!
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post #12 of 53 Old 12-04-2012, 03:42 PM
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After the first day of ownership, everyone drives a used Ferrari.

DPM there is a difference between income and wealth. You have the income to buy the car of your choice.

Some say never finance a depreciating asset. A new Ferrari is just that at best. There are many opinions on that as well. Many have lived with a new Ferrari and sold after a short time and kept most of their money. Others have made money ( but doubtful in this economy).

From this baseline, several have suggested a used Ferrari- buy a more depreciated car and the risk is less- the fun is certainly no less. A California new vs used? In business they say its always better to be the second owner. I have always found joy better at 30% off.

Just a couple of unsolicited thoughts.

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post #13 of 53 Old 12-04-2012, 03:50 PM Thread Starter
 
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After the first day of ownership, everyone drives a used Ferrari.

DPM there is a difference between income and wealth. You have the income to buy the car of your choice.

Some say never finance a depreciating asset. A new Ferrari is just that at best. There are many opinions on that as well. Many have lived with a new Ferrari and sold after a short time and kept most of their money. Others have made money ( but doubtful in this economy).

From this baseline, several have suggested a used Ferrari- buy a more depreciated car and the risk is less- the fun is certainly no less. A California new vs used? In business they say its always better to be the second owner. I have always found joy better at 30% off.

Just a couple of unsolicited thoughts.
How much mileage on a used Ferrari would be good? 7000? 10,000?

Say, a F430? or a 360? Or Scaglietti?
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post #14 of 53 Old 12-04-2012, 04:25 PM
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Yea, I'd get a minty fresh F430 Spider for half the cost of a new California. There is still some depreciation left on them for sure but nothing like a new Cali.
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post #15 of 53 Old 12-04-2012, 07:18 PM
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A Ferrari has been a lifelong goal of mine.
Well, now we're getting somewhere.

I highly recommend you:
Read the Buyers Guides
Look at and drive as many of them as you can
Find the one that really speaks to you and get a nice used one
Then get a second one for the wife

I wouldn't worry too much about mileage.
Do a search on the forum, you'll find endless discussions about mileage and its affect on condition, price and resale. Many would agree, condition and a good PPI are far more important than mileage.

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post #16 of 53 Old 12-05-2012, 01:54 AM
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How much mileage on a used Ferrari would be good? 7000? 10,000?

Say, a F430? or a 360? Or Scaglietti?
IMHO the wrong approach. Look at the maintenance history and who serviced the car. Was it a reputable shop with a good track record? Were there gaps in the history? Were the majors done regularly? What was fixed on the car? Were all the recall issues done?

Miles are not a problem on a Ferrari. Bad maintenance is. And standing still without any maintenance is also bad.


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post #17 of 53 Old 12-06-2012, 01:51 PM
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My Dad gave me some good advise. Always pay CASH for your toys. If you don't have the cash, work hard and save up until you do. 458's and California's are not appreciating. Order a new one, and you will have about a year wait.

Most of us didn't start with the top model. Started with 360 Spider first, then 430 Scuderia, then 16M, and now have a 458 Coupe on order. I am 43.

Others will disagree, but if you can't pay cash for your Ferrari, you can't afford it, YET.

2015 458 Speciale', 2014 F12, 2013 458 Rosso Scuderia (To be traded), 2012 MP4-12C, 2010 LP670 SV, 2010 Panamera Turbo, 2009 16M, 2009 Scuderia , 2008 CLK63 Cab., 2002 996 GT2, 1994 RX-7 R2
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post #18 of 53 Old 12-06-2012, 06:17 PM
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Mark- I disagree. Got my first one at 27 and paid it off in 30 months, then got a better one. Not all of us will ever be rich.

Taz
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Every day I look around, and if nobody is shooting at me, it is a pretty good day.
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post #19 of 53 Old 12-07-2012, 06:12 AM
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Mark- I disagree. Got my first one at 27 and paid it off in 30 months, then got a better one. Not all of us will ever be rich.
Taz-don't totally agree with your point. I assume that you were able to pay the monthly costs without jeopardizing your financial position. To me that's the same as Mark is saying, don't buy if you cannot afford it, whether it's an amount of cash on the table, leasing, or getting a loan for anything.

Jeroen

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post #20 of 53 Old 12-07-2012, 08:39 AM
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Jeroen- I have never been able to afford any of the Ferraris I owned. If it is important enough to you, though, you find a way.

Buying a Ferrari through a loan is perfectly ok as long as your income can support it. My method was always to stretch for the best car you could afford, pay it off, and move up. My progression was 67 Corvette, 69 911S, 72 Dino 246 GT, and 70 365 GTB/4 in the olden days.

Anybody can afford a Ferrari if they want one badly enough. My progression now would be 308/328/456, then F355/550, then 575M/612, then Scud/599. If I wanted to move up, which I do not.

Taz
Terry Phillips

Present: 575M 135171
Past: Dino 246 GT 02984, 365 GTB/4 14009, 308 GTS 25125

Every day I look around, and if nobody is shooting at me, it is a pretty good day.
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