I can afford one, but does that mean I should get one. Need your help - Ferrari Life
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post #1 of 36 Old 03-04-2011, 07:01 AM Thread Starter
 
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I can afford one, but does that mean I should get one. Need your help

I am 24 years old however I am not the typical 24 year old who says "I want a Ferrari" or my dad is going to buy me one. I never went to college. I started working in the industry I am currently in since I was 18, and I have grown my career to a $225,000 a year job. I have been making $180k+ since I was 22. I have had several BMW's growing up, getting my first at 20 and have had 7 since. (All leases that I have had assumed by another party) I have always been a car guy. I sometimes will find ways to put my attention on something else such as when I had a home built a few years ago, but I always come back to cars. In July of 2008, I pulled the trigger on a 2008 Maserati Granturismo. It was my 2nd car and I used a BMW X5 as my daily driver and I put 5k a year on the GT. It was a great car and I told myself I was going to keep it forever but I decided to sell it last september. No real reason, nothing to do with financially. It just wasn't the car I wanted to keep long term, in other words it was a substitute for what I really want and we all know that that is- an F car.

Since I sold the Maserati I now have a 11 Mercedes C 4matic and an 11 BMW M3 convertible as my "fun" car. I have been going back and forth about getting out of the M3 and putting an F car in the garage but I have one problem. I drive... a lot. I live in NH and my commute alone to work is 20k miles a year I add another 7-10k a year in personal use. So I need 2 cars to put mileage on. And I don't want to put that kind of mileage on a Ferrari... what I'm getting at is I am considering getting an F430 as a 3rd car to only use 2-3k per year.

Financially everyone tells me I "have the world by the balls" so to speak- that time is on my side n if I play my cards right I can retire at 35. I have no obligations, no kids, no wife, just me. I have several different investment vehicles and I try to adhere to putting my extra money into the right places every month. Everyone I talk to thinks I am insane for even considering getting a 3rd car for 130K+ for it to sit. I even think my financial advisor will disown me. But for me, its all emotional. Yes, it will affect the amount of money I can put away on a month to month basis and yes I may have to work longer before I can retire but I am 24 and have the ability to afford my own F-car in my early 20's, not one my dad got for me.

I am looking for advice and inputs on my situation from everyone. I'm sure just like the guys at maserati life that everyone here can offer some great advice regardless of what I want to here. Thanks everyone!
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post #2 of 36 Old 03-04-2011, 07:18 AM
 
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With all of the trading in and out of cars you are already doing, it seems quite possible that you are already spending F car money. If you get a F430 and keep it a few years, it might cost 50-70K or so - if it will be worth that much in entertainment to you - then go for it.

It seems pretty clear that you will be doing it sooner or later anyway...
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post #3 of 36 Old 03-04-2011, 07:23 AM
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go test drive one. nothing we can say will talk you out of it then.

buying a ferrari makes no financial sense in most cases.....Pretty much like leasing BMW's.



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post #4 of 36 Old 03-04-2011, 08:13 AM Thread Starter
 
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Originally Posted by wetpet View Post
go test drive one. nothing we can say will talk you out of it then.

buying a ferrari makes no financial sense in most cases.....Pretty much like leasing BMW's.

I've driven them, I know how they feel. I've also driven a gallardo, couple astons, SLR Mclaren, bently's. F430 is where it's at.
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post #5 of 36 Old 03-04-2011, 10:54 AM
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Drive the darn thing!

Completely agree with everything said above. I can only add that there is no reason to let the F430 sit. It's every bit as tough and reliable as those silly bimmers -- just a lot faster and better looking and more fun to drive ;-)

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post #6 of 36 Old 03-04-2011, 11:02 AM
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Quote:
Originally Posted by Gigiti View Post
...I have several different investment vehicles
Intangible financial investment vehicles are saavy, however an investment vehicle with wheels is an oxymoron. I'm sure you were referring to the former.

The cost of a Ferrari is measured more by maintenance than the initial price. A 430 has timing chains (not belts) so you have quite the advantage there, but they need to be driven- even a little (which is a good form of maintenance).

A Ferrari is purchased with the heart, not the head. Otherwise, it can't be justified.

Last edited by Neonzapper; 03-04-2011 at 11:09 AM.
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post #7 of 36 Old 03-04-2011, 11:29 AM
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Wecome to FL, Gigiti. Sounds to me like you have the right things, hard working ethics and passion in your heart for cars. I don't think anyone else can tell you what to do. If you have no other obligations and duties, then you can sit down and do your math and sounds like you are in an enviable position to afford one at your age. Good luck with your first F car. Do keep us informed. There's many knowledagble owners here who can help. w/ smiles Jimmy
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post #8 of 36 Old 03-04-2011, 12:47 PM Thread Starter
 
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Originally Posted by Neonzapper View Post
Intangible financial investment vehicles are saavy, however an investment vehicle with wheels is an oxymoron. I'm sure you were referring to the former.
Yes, by vehicles I mean 401(k), mutual funds, annuties, life ins policies with guarenteed annuties, extra principle to my house, savings, etc.
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post #9 of 36 Old 03-04-2011, 01:07 PM
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Go for it Gigiti. A 3-4 year old F430 probably wont damage the wallet much more in terms of depreciation than a brand new M3, and having driven and owned many M3's I'd take the 430 any day.

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post #10 of 36 Old 03-04-2011, 05:35 PM
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Hi Gigiti! I have a background similar to yours except that I am you plus 20 years and 100 cars later. I know I am going to get some arguments on this, but cars are not investments, cars are expenses. There are almost no exceptions to this, so anyone that tells you different is selling you a car or justifying their own garage full of toys by justifying your spending. So its said, I have spent a lifetime’s worth of money on cars, so I have a lot of room to talk.
The lease versus buy, I have yet to have a single car dealer or money guy show me how a lease is really better, so I would advise against it almost 100% of the time. Your commute is really, really rough. At somepoint soon, you are going to start adding up what you are doing to two cars in terms of expense and deprecation and its going to piss you off. I went through this a few times even recently doing the same drive in a new Range Rover. I decided that work started to not be as much fun as it used to be and you know what? I found a truck (Denali) for half the price, better gas mileage and all the same toys for half the price. It matters because now I am running the crap out of a 55k truck instead of an 110k truck, I am loosing half the money. The tirade here is to say don’t waste money and tear up nice cars driving that much, buy yourself a cool car to leave in the garage for the weekends. Invest what you are saving on the difference or buy yourself another cool car to drive on Sundays, but don’t waste it tearing it up going back and forth to work in it.
Everyone is going to say be careful with your money, invest, don’t spend it on cards, blah blah blah. That’s obvious and you seem to already know the answer to that question. So then its really a hard look at what makes you happy and what fuels your success. If you didn’t have these toys, would you be happy? Would your resulting unhappiness affect your success? Probably so. Would you retire later so you could enjoy the cool cars now or do you get buyers remorse after every deal? None of us need these cars, the word “need” and “Ferrari” do not belong in the same sentence or paragraph. We want a Ferrari because its cool, its exclusive and because we can. For some, there is some “FU” factor that’s involved too.
The bottom line is do what you want, you earned everything you have, don’t let people spoil your happiness and do whatever the heck you want to. I was pretty successful at the same age you are now and I am sure you have seen people that give you a hard time because of your age and that you have to work a lot harder for the same business & work as others because of your age. That treatment from people makes you more competitive with everyone most likely and want to outdo others, right or wrong.
If you truly think you aren’t being responsible and want to retire early, sell the toys! Maybe keep one to get stupid with on the weekends and save the rest, there will always be a new car waiting for you to buy it, there will always be a buddy that has a cooler car than you, it happens. When you are 40 and retired and that same buddy is still living paycheck to paycheck, you will be proven to have made the right decision.
Good luck and let us know what route you chose, you seem to make a lot of good decisions and the smart money says you will make another good one here.
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post #11 of 36 Old 03-04-2011, 09:53 PM
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Eyemanmd is right - cars are expenses.

If you buy an F430 and keep it for 4 years, you're likely to be $40 - 50k out of pocket. Add $15k in all running costs and you get $15k a year.

Seems to me those $15k a year are perfectly justifiable on your income. And note, that amount is a lot less than your M3. Let alone your Merc.

If you want to semi-prudent when owning an F430, you should stop buying new cars and buy 2 - 3 year old cars. From the difference with new cars you can easily pay for the F430.

But I understand the attraction of new cars and as long as you are also saving up and building a future there is absolutely nothing wrong with enjoying yourself. But please, you need to put big chunks of money away - you'll thank me later. There is nothing like making money when you're young. I only started making decent money when I was in mid-'30ies, those extra 10 years make a LARGE difference.

BTW - I think focusing on retiring by 40 is not smart, but that is just me. It is much better to focus on getting an easier lifestyle and have something to keep you busy, like a couple of businesses or focusing on a different career where you don't need the money, that you just do for your own pleasure. Work at least 20 hours a week and have a routine. Retirees die of boredom.


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Last edited by JazzyO; 03-04-2011 at 09:58 PM.
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post #12 of 36 Old 03-04-2011, 11:03 PM
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Quote:
Originally Posted by eyemanmd View Post
Hi Gigiti! I have a background similar to yours except that I am you plus 20 years and 100 cars later. I know I am going to get some arguments on this, but cars are not investments, cars are expenses. There are almost no exceptions to this, so anyone that tells you different is selling you a car or justifying their own garage full of toys by justifying your spending. So its said, I have spent a lifetime’s worth of money on cars, so I have a lot of room to talk.
The lease versus buy, I have yet to have a single car dealer or money guy show me how a lease is really better, so I would advise against it almost 100% of the time. Your commute is really, really rough. At somepoint soon, you are going to start adding up what you are doing to two cars in terms of expense and deprecation and its going to piss you off. I went through this a few times even recently doing the same drive in a new Range Rover. I decided that work started to not be as much fun as it used to be and you know what? I found a truck (Denali) for half the price, better gas mileage and all the same toys for half the price. It matters because now I am running the crap out of a 55k truck instead of an 110k truck, I am loosing half the money. The tirade here is to say don’t waste money and tear up nice cars driving that much, buy yourself a cool car to leave in the garage for the weekends. Invest what you are saving on the difference or buy yourself another cool car to drive on Sundays, but don’t waste it tearing it up going back and forth to work in it.
Everyone is going to say be careful with your money, invest, don’t spend it on cards, blah blah blah. That’s obvious and you seem to already know the answer to that question. So then its really a hard look at what makes you happy and what fuels your success. If you didn’t have these toys, would you be happy? Would your resulting unhappiness affect your success? Probably so. Would you retire later so you could enjoy the cool cars now or do you get buyers remorse after every deal? None of us need these cars, the word “need” and “Ferrari” do not belong in the same sentence or paragraph. We want a Ferrari because its cool, its exclusive and because we can. For some, there is some “FU” factor that’s involved too.
The bottom line is do what you want, you earned everything you have, don’t let people spoil your happiness and do whatever the heck you want to. I was pretty successful at the same age you are now and I am sure you have seen people that give you a hard time because of your age and that you have to work a lot harder for the same business & work as others because of your age. That treatment from people makes you more competitive with everyone most likely and want to outdo others, right or wrong.
If you truly think you aren’t being responsible and want to retire early, sell the toys! Maybe keep one to get stupid with on the weekends and save the rest, there will always be a new car waiting for you to buy it, there will always be a buddy that has a cooler car than you, it happens. When you are 40 and retired and that same buddy is still living paycheck to paycheck, you will be proven to have made the right decision.
Good luck and let us know what route you chose, you seem to make a lot of good decisions and the smart money says you will make another good one here.

What a wise comment, my sincerest congratulation to this advise. I know, not everybody will like it when reading your comment as the majority tend to add to many "roses" to their internal believe-system.
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post #13 of 36 Old 03-04-2011, 11:24 PM
 
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Eyeman hit the nail on the head, on all facets. Sir, I doubt you'll find anyone here who wants to argue with those sentiments.
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post #14 of 36 Old 03-04-2011, 11:25 PM
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Eyemanmd, you said virtually everything that I was just about to blurt out !!! No, seriously, you said it so eloquently and got the point across. Enjoyed your wisdom there. w/ smiles Jimmy
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post #15 of 36 Old 03-06-2011, 11:08 AM
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Life is short and so far no one has been able to prove you get a second shot at it. If you can afford it and it makes you happy, then why not.
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post #16 of 36 Old 03-06-2011, 01:04 PM
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Couldn't of said it better then eyemanmd! Great post.

Cheers
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post #17 of 36 Old 03-06-2011, 02:51 PM
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I felt a little odd about this subject and just re-read this thread to discover exactly what my reservations were.

Its missing one VERY important feature. At no time does the OP state that he wants a Ferrari. To me, that is the most important question. Lord knows these cars can be a handful. If you not convinced you can't live without one, I recommend you buy something else. The Marque certainly doesn't need another owner disappointed by the failure to exceed his expectations.

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post #18 of 36 Old 03-06-2011, 05:28 PM
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Read it again, he did say that "It just wasn't the car I wanted to keep long term, in other words it was a substitute for what I really want and we all know that that is- an F car."
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post #19 of 36 Old 03-07-2011, 12:54 AM
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I don't agree. He speaks of the desire to own an Fcar but does not seem very particular about which one. He is considering a F430 but never speaks of his passion for that model. It just seems to me more of a status object than a true desire.

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post #20 of 36 Old 03-09-2011, 12:19 PM Thread Starter
 
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I really appreciate everyones views and opinions on this topic. After reading what everyone said and doing more thinking I came to the conclusion of holding off. I am going to save while I am young. I will however eventually get one so instead of getting all of my goals accomplished and leaving nothing to myself to achieve later in life I figure I may give myself something to look forward to. At 35 years old an F car will make one hell of a birthday gift to myself. Thanks again everyone! Enjoy your cars!
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