Average Income of Ferrari Owners in USA? | Page 9 | FerrariChat

Average Income of Ferrari Owners in USA?

Discussion in 'Ferrari Discussion (not model specific)' started by leroy105, Jan 15, 2021.

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  1. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    Your math uses alot of assumptions which are not always true. But everyone's risk tolerance is different and you have WAY more investment capital than 98% of people in this country do so I'll side with some "inefficiency" than take a second mortgage to buy some gamestop.
     
  2. EastMemphis

    EastMemphis Formula 3
    Owner Silver Subscribed

    May 25, 2019
    1,719
    Memphis, TN
    Full Name:
    John
    The thing I hate the most and avoid like the plague is paying interest on a depreciating asset.
     
  3. Shark01

    Shark01 F1 Veteran

    Jun 25, 2005
    5,687
    Yep, a brutal double hit....I can't imagine going through my daily life with a new exotic having a $150k note.
     
  4. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    18,772
    agree but this is math too...ie can you invest at a better rate than interest + depreciation. thats not easy to do.
     
  5. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    18,772
    makes sense
     
  6. Simon^2

    Simon^2 F1 World Champ

    Oct 17, 2005
    12,313
    At Sea Level
    So you walk into the BMW dealer,... and they offer you a geat deal on an M4 / M5 / X7... you decide...

    You can pay cash or take their 3 year 0.9% financing? (Rate and term made up for example)

    You'd pay cash? I'd take that financing every day vs paying cash.

    My home mortgage is 3.125%... effective rate of a fraction over 2% after the tax deduction.

    I have an equity line at 3.875% (used to buy investment properties)... effective rate of about 2.6%.

    Every time I look at paying extra principle,... it makes no sense.

    There is stupid interest,... but when money is so cheap,... the usual rules don't always apply.

    Need to look at each opportunity separately and act accordingly.

    The dumb part is paying 165k for the Mercedes AMG that'll be worth 50K in 3 years,... not financing it at 0.9%!! :p

    YMMV
     
    NMNMNMN likes this.
  7. EastMemphis

    EastMemphis Formula 3
    Owner Silver Subscribed

    May 25, 2019
    1,719
    Memphis, TN
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    John
    #207 EastMemphis, Feb 6, 2021
    Last edited: Feb 6, 2021
    Buying a new car is a sucker's bet. Drive it off the lot and you've lost maybe 20% for the privilege of being the first owner to sit in the darn thing. It is far better to get a lightly used car with years of warranty left.

    So let the suckers pay full retail on that "great deal".

    The last regular car I bought was a two year old S550 for 1/2 retail price. It was in perfect condition with literally every possible option. Financed it through Navy Federal at 0.5% for five years. In my opinion, 0.5% is not paying interest as it's below the rate of inflation.
     
  8. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    18,772
    I agree. If i buy a new car its one i plan on keeping for 20 years and more.
     
  9. LARRYH

    LARRYH F1 Veteran
    Owner Rossa Subscribed

    Jun 3, 2011
    9,142
    virginia usa
    My point on not having a home mortgage is simply a home mortgage becomes a secured debt just like like a margin loan .... so if things go bad the house becomes available to creditors regardless of the size the the loan .... where as if the house is fully paid off and titled correctly
    it becomes a protected asset... every state is different ... ...so if someone is in a business that has RISK and wants to protect themselves it is possible to do this....
    it is not so much about how much you can make on the house it is about how much you can lose on secured loans ... and while someone can loose a fortune in investments in the market and it does not effect their life just feels bad but if you have sell your house to make up for then it is
    terrible thing...
     
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  10. randkin

    randkin Formula 3
    BANNED

    Aug 2, 2015
    1,497
    Somis, CA
    Full Name:
    Randy
    I agree with you on college athletic scholarships. My son was very good at tennis and likely could have gotten a scholarship at a smaller D1 school but fortunately he was an excellent student as well. He ended up going to the school of his choice on a part scholastic scholarship (we didn’t qualify for a full scholastic scholarship). He graduated with honors as he was able to devote his full attention to studies w/o the distraction of playing a sport. I have no doubt his college experience was far better than had he devoted a large amount of his time to playing D1 tennis. Additionally I think he will be more successful in his career endeavors as well.
     
    JP365 likes this.
  11. randkin

    randkin Formula 3
    BANNED

    Aug 2, 2015
    1,497
    Somis, CA
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    Randy
    Kind of depends how big of percentage your home/homes are relative to your NW. If not a large percentage then having the home paid off is really a mute issue. If it is a large percentage of your NW then managing that asset and its debt is much more important issue. IMO
     
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  12. Island Time

    Island Time F1 World Champ
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    Dec 18, 2004
    10,774
    E. TN
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    David
    #212 Island Time, Feb 6, 2021
    Last edited: Feb 6, 2021
    To some people it can be worth some money to not owe money.
     
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  13. Simon^2

    Simon^2 F1 World Champ

    Oct 17, 2005
    12,313
    At Sea Level
    I totally get that. I am that person. I hate debt with a passion. It's a burden to live in a time of ridiculously cheap money. It would be so much easier with12% mortgage rates!
     
  14. vandevanterSH

    vandevanterSH Formula 3
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    Jan 27, 2005
    1,788
    AR
    Full Name:
    Stephen Van Devanter
    " It would be so much easier with12% mortgage rates!"
    *****
    Ah!!! Fond memories of my first home purchase in 1980....IIRC, mortgage rate was 17%+
     
  15. ttforcefed

    ttforcefed F1 World Champ
    Rossa Subscribed

    Aug 22, 2002
    18,772
    If mortgage rates were 12 the 30 yr wld be paying alot - thats the dichotomy
     
  16. BMW.SauberF1Team

    BMW.SauberF1Team F1 World Champ

    Dec 4, 2004
    14,244
    12% mortgage rates would be great. Asset prices would tank and cash would be worth more and I could pick up stuff easily rather than having my cash compete with people that can only get it with loans.
     
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  17. mchas

    mchas F1 Veteran
    Silver Subscribed

    Oct 5, 2004
    5,903
    Los Angeles
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    Mark
    If mortgage rates were 12% inflation would be just as high so cash wouldn’t necessarily be worth more. As @ttforcefed said, it’s all relative and there is no free lunch.
     
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  18. GratefulKev

    GratefulKev Rookie

    Nov 12, 2019
    7
    Full Name:
    Kevin Kane
    The short answer is that soccer enabled her to attend a top university where she is thriving. We were very fortunate that we could make a decision based upon her preferences and goals without regard to tuition costs. That said, the grant based system used by the Ivy League often results in qualifying athletes (playing with the calculator on the Princeton website I found that grants (free money) are still given at up to $350k/yr in income) getting far more tuition help than they would receive from a larger state university who split a limited number of scholarships among many players. Plenty of people know that Ivies do not give athletic scholarships but few know that the grant system is far superior to the normal scholarship programs. Keep that in mind for your son.

    Her long term goals do not involve soccer. She loves everything about the sport but realizes that the women's professional opportunities in the US are tantamount to playing Class A baseball. We housed a Washington Spirit player for the 2017-2018 season and were granted insights into the reality of her life as a pro. It was not pretty. I do not know how she would have survived without a second job or help from her parents had we not provided free housing for her. Soccer opened doors to several schools that may not have shown any interest in our daughter were she a NARP (Non-Athlete Regular Person, not my creation so don't flame, please). She was a top student at a top private school who took very challenging classes - i.e. AP and honors - and had a strong ACT score that would certainly have placed her in the running for the schools that recruited her; however, soccer shifted the paradigm, making Liv the selector and not the admissions committees. That alone was worth the numerous sacrifices she made to put herself in that posture. Liv entered Princeton with five immediate best friends from her recruiting class. They went to school a month early for pre-season which allowed them to acclimate to their new environment, spend time and bond with upperclassmen teammates, and settle into their dorms before the mad rush on move-in day. The Ivies emphasize that you are a STUDENT-athlete. Academics matter most. The entire academic campus shuts down daily between 4:30-7pm to allow the students to participate in their various activities, be it sports, clubs, band, etc. Almost every game is on a weekend so as not to interfere with classes. It's a very different experience than what athlete at non-Ivies enjoy. At Princeton, Liv's experience has been largely ideal, save for the injuries. Golf is a unique sport for college and, if he's a solid player, will open a lot of doors for him.
     
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  19. plastique999

    plastique999 F1 Veteran
    Owner Silver Subscribed

    Nov 9, 2008
    8,539
    SoCal
    Full Name:
    Edward
    Fantastic info and very helpful!
    Appreciate you sharing your daughter’s info and hope my kids may follow a similar path. Kudos and commendations to her and your fatherhood.


    Sent from my iPhone using Tapatalk
     
  20. jjtjr

    jjtjr Formula Junior

    Aug 29, 2016
    668
    Vermont
    Full Name:
    john truskowski
    Me too. My philosophy is that if I can pay cash for a DD that I plan to keep for 12-14 yrs and put 250-300k miles on, then I will. Even though I could get a low rate, I still have to make the payments over the term while the cash would be growing in the market. I would rather allocate the money that I would be paying monthly to the creditor and put it into the market each month at my discretion. Why? I am a staunch pessimist and always overcautious, so I would rather not be encumbered to make payments on something I can own in case something goes wrong.
     
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  21. JP365

    JP365 Formula 3

    Mar 8, 2007
    1,340
    Chicago
    Full Name:
    John F
    For most things I agree, but since 2000, I’ve come to my wife’s POV, when it comes to 0% interest on cars. I financed two of my last four cars because they were dealer leftovers from the previous model year and were 0%. I drove my Sienna for 16 years until the transfer case locked up at 65mph on the highway. The other leftover Toyota is currently 7 years old and going strong. The other two cars over the last 21 years I paid cash because I didn’t want to pay interest. My thinking when it is 0%, why take cash out of the market which is making money when I can pay for the cars that are interest free.
     
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  22. Pawilly

    Pawilly Formula Junior
    Rossa Subscribed

    Jun 9, 2010
    255
    Lancaster, PA
    Remember this well in the late 70's/early 80's. Inflation was awful. Mortgage rates in '83, when we bought our first home were avg. 14%. Because I was a veteran and financing GI, we felt fortunate to get 12%. Frankly, that era was no fun. There is no free lunch.
     
  23. AceMaster

    AceMaster Three Time F1 World Champ

    Feb 6, 2009
    34,548
    Ontario, Canada
    Full Name:
    Mike
    I'm curious to know what your home is worth, since you have a mortgage and at least $400,000 laying around.
     
  24. zboot

    zboot Rookie

    Feb 3, 2021
    4
    This doesn't make sense. If you pay cash up front for a car, that money is gone. Not available to be reallocated from paying a creditor to be put in the market. If you have money to allocate to the market after buying a car in full, you'd have more money to do the same if you used credit to make the purchase.
     
  25. Lacy h Edwards

    Mar 22, 2019
    3
    Full Name:
    Lacy Edwards
    You say your saving over $250K per year. What are you "saving" for? There is only two reasons to buy a Ferrari (or an airplane, a vacation hme, or a Rolex, etc). Those reasons are 1) you want it and 2) you can afford it.
    With your income, and apparent excellent personal financial management, you can afford almost any Ferrari you want, just stay away from collector car autions. I once told a girlfriend after a $2,000 dinner bill for two at La Maison du Caviar in Paris, "Life's too short to eat cheap caviar".
    Stop stressing and buy yourself the damn Ferrari! With what we've all had to deal with the past year, enjoy the fact that you're one of the lucky one's and live life!
     

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