Demographics of Ferrari Owners?

That's why I specified non-transportation cars. The cars we are talking about are not used for getting to the office. At least not regularly.

 

When I'm too old to drive anymore maybe I'll get a nice big yacht

 

Guys,
The real key to financial security is your balance sheet. If you have 10M in assets, but 5M in debt, you need a large income just to service that debt plus other expenses. If your assets take a 30% hit, you may still have a net worth of 2M, but with 5M of liabilities, you'd be playing with fire. A person in this situation would likely be looking to unload assets that are leveraged which may include a Ferrari. OTOH, a person with 2M in assets and 0 liabilities is not very vulnerable to changes in income, etc. and probably would not have to sell off anything.

Dave

 

I fit little of that profile.

Especially the $$$$$$$$ part. You'd have to lop a lot of zeros off to get "Down" into my ballpark.

 

I was assuming that "net" means assets minus liabilities. So this person would have net assets of 5M. And if he has expenses to service the debt he might not have enough cash flow to buy anything, even on lease.

My feeling is that these cars should be purchased in cash. Shows how naive I was during the price runups-- I was thinking, "Who are all these people who can write a check for $750K? Are there really that many people who have 7.5M in (what we thought were) low-risk investments?"

 

IMO, it's beneficial for people, like business, to have strong balance sheets. Unfortunately, few people even understand the concept.

You probably remember all the cash vs borrowing threads here in recent years. I always argued cash since no one could come up with a totally risk free investment paying the 7% or more that car loans cost. Those that argued suggested buying condos, stocks, etc. Frankly, I suspect that most that argued for borrowing didn't have the cash in the first place. We don't hear much from them lately, I wonder how they are doing. Like you, I was pretty naive as well. I had no idea anyone with a pulse could get a "no doc" mortgage. Had I known, I would have had a much better idea of how bad the crash would be. The good news is if I hadn't bought my 430 in 2005, I probably would have bought stocks. The 430 is down 30%. My stocks? Don't ask.

Best,
Dave

 

I'm at the very top of the range....































...in cup size....

































I wish

 

Mine is.

 

Lucky you!

My friend was telling me how much she spends on private school tuition, sitters, and activies for her daughter. I was like damn, if you can afford that, I can afford my Ferrari. Wonder if I could get child support for the Ferrari though.

 

I couldn't apply for "child support" on either of my Italians -- they're both over 18.

I was wondering if I could write my 328 off as a "medical expense" -- I aways feel better after driving it.

(Maybe it's the flat crank V8 rumble -- good for the digestion. )

 

Hey, maybe I could pay for it with my Health Savings Account. Hadn't thought of that one. I'm still hoping I can get my dog a SSN so I can write her off as a dependent. I wish the IRS was a little more accepting of varying lifestyles.

 

Possibly, but then again you should have at least equilibrium between income and spending.


Steve

 

"Average annual household income is above $1M" is a different claim than "most have annual household incomes over $1M".
It only takes a few people who are billioniares to skew the average number up by quite a bit.
So, the statistic might be true.

In our geographic region, we have just under 300 Ferrari-owning members and there are a couple of folks that probably make more than $100M per year.
So the "average" is way up there but the "average Ferrari owner" is at a more typical income level.

 

How was this computed?

If two people bought a new Ferrari each, and one had an annual income of $1Billion and the other $0, the average would still be $0.5B--thus without knowing how this number was computed, it is completely worthless.

 

definintely need a standard deviation in there.

 

I'd sure bring down that income average

-- Annual household income of $1 million or more. ...Bah ha ha ha ha, not even in a dream, probably never, unless the wife collects on my life insurance policy! (not sure I'm worth that much even dead!)

Male, 43, college grad, Manager working for a manufacturing company. No kids

Just worked hard and saved money.

 

Yes and no.

The average Honda owner makes less than $70k yet a Honda Accord can set you back about $35k, just about 50% of a buyers annual income.

I guess I can see someone making $600k and buying a Ferrari for $280k.

Kai

 

But your profile doesn't list a Ferrari...so child support is probably out of the question...LOL


However, I do love the pic

 

Yeah, I dont fit much of that....

College degree, advanced degree, age group - yeah I got that.

Money - nope

Multiple cars - I have four total, counting the Ferrari, so even with that I am STILL below average....



PDG

 

And on top of that, they finance it. And then they wonder why they never get ahead.

And then they buy the biggest house they think they can stretch their money into, with its higher mortgage, taxes, insurance, utilities, and upkeep costs. And then they wonder why they're broke, or swimming in debt.

 

I do[i/] own one, but I sure feel broke ass reading that

 

-- Annual household income of $1 million or more. ...about 9-10 % of that here, but the Mondial 8 is about 9-10% of a new Ferrari

-- Ninety-eight percent are male. male.....Yes, I'm male

-- Age: 35 to 55 years old. ....52 was 49 when bought it

-- Occupation: professionals, entrepreneurs and high profile individuals; 82 percent are self-employed. .....Manager of Engineers adn Building inspectors for local government.

-- College graduates: 79 percent. ....VA Tech alum--Go Hokies...

-- Post-graduate degrees: 39 percent. ...VCU abd...

-- Half the Ferrari owners own five or more cars and 65 percent own more than one Ferrari. .....11 cars, trucks and SUVs licensed and insured, only one Ferrari but 2- "baby Ferrari" Bertone X1/9s-- does that count lol

 

<-- this is exactly true..

many ferrari owners probably make from 200-600k a year.. that is probably the 80% majority of the owners..

they have line of credit, home equity, or had one or two years where they made 800k or 1.2M or something..

but generally I am willing to bet 200-600k a year.. I have met many people in LA that make 1M a year.. buy a ferrari, the next year make 100k.. so they sell the ferrari.. the next year 1.5 million.. buy another ferrari..

I personally know more than a few people who purchase 200k+ ferrari's making under 600k a year (on average) it's all about what you can "swing" if you get my drift

also remember they are not buying another ferrari every year.. they may keep their 230k 430 for 3-4 years.. which means that 200-600k is plenty extra cash for them.

 

Agreed. Median is much more valuable in a measure such as this.

 

Wow... I'm way out.


-- Annual household income of $1 million or more. Not a chance

-- Ninety-eight percent are male. male.....OK, give you that one.

-- Age: 35 to 55 years old. ... 25

-- Occupation: professionals, entrepreneurs and high profile individuals; 82 percent are self-employed. Employed.

-- College graduates: Nope...

-- Post-graduate degrees: No.

-- Half the Ferrari owners own five or more cars and 65 percent own more than one Ferrari. Not for me either