Demographics of Ferrari Owners?

We should just start a poll somewhere...

Ace

 

I just wan'a thank those rich folk who buy em new so us po folk can buy em used.

dave

 

Hear Hear!~

 

for another perspective, here's what it takes to be "rich" in (name your city)..
http://money.usnews.com/money/personal-finance/articles/2008/10/09/what-it-takes-to-be-rich--where-you-live.html

 

me too, DAMMN IT!

 

good link mate, Thank you!

 

In the example you quote, the median income would still be 0.5B.....

 

Oh please!
You really that that a lot of the "new Ferrari owner's" aren't doing exactly the same thing?

Based on the sheer number of fairly new Ferrari's currently for sale, I guess a few of them are swimming in debt, as well.

 

My comment was in response to the assertion that Honda buyers are spending half of their annual income on a new car. Considering that half of one's annual income is a significant amount of money to that person and that new cars depreciate, I think that is not a wise move financially, and I pointed out other unwise financial moves those typical owners make. I have no idea what new Ferrari owners are doing, but if they are doing the same thing (i.e. borrowing money to buy a depreciating asset that costs half of their pretax income), then they are not being very wise, either.

 

But Honda buyers often keep their cars for many years and put tons of miles on them (100-250K). So yes, even though the car may cost them half of an annual salary, the actual cost in relation to miles/years used is diminished.
Compare this to a Ferrari, where one can drive 10-15k miles and suffer a 100K depreciation in a blink of an eye...

 

I don't know which is greater, but there are plenty of new Honda buyers who keep their car only 2-5 years. Lots of leases, lots of people who sell cars before/when the warranty runs out, and lots of people who just always want to have a new car.

If you are going to factor length of ownership into the equation, one could play the card that many new Ferrari buyers unload their cars at a premium or with little/no loss while the model is still hot. If you are going to use the "10k miles depreciates a Ferrari" line, that's really comparing apples to oranges, like saying "the Honda doesn't offer anywhere near the performance of the Ferrari," as if that were relevant or valid. The comparison being discussed here is one of buyers and spenders, not of cars. The market value of a given year car is what it is, and accounts for cars being used in their respective typical and intended manners.


The reality is that most people buying new cars can't afford one. That includes all common makes, not only or especially Honda. The old phrase "When you're buying a used car, you're just buying someone else' problems" is a fool's mantra. You're paying an awful lot for that bumper-to-bumper warranty (in the form of depreciation), many times the cost of probable repairs if you bought used. That's simple math. But people are emotional, and have to excite themselves with something new. But buying a rapidly depreciating asset worth half (or more) of their pre-tax annual income is something nobody who isn't financially secure should do. And as I said before . . . on top of buying a depreciating asset, they pay interest on it. Many people waste all their money away to banks because they feel they have to live in a big[ger than they can afford] house and drive a new[er than they can afford] car. But because everyone around them is doing it, they think they can afford it.

 

That used to be the case, but not any more. New Ferraris now take big depreciation hits. Those days are over....

 

It goes through cycles, and as long as there is a waiting list for a model, used ones will be at a premium or hold their value.

 

I hope so! I'd love to see that dynamic back again, where a Ferrari owner can perhaps make a profit flipping his car after a few thousand miles of ownership.

 

I think if people payed in 'cash only' for their cars, they would come out way ahead in the end. The pain of that would make it less likely that they would change cars as often during their driving lifetime.

 

After reading this, I am discouraged and feel like a pauper in spite of earning 100k for past 5 years! Oh well, guess I can dream and buy a toy replica Ferrari. Probably why most Ferraris and exotics are bought by pro athletes, movies stars and fat cat wall street bankers these days.

 

Some maybe, but no where near most.

Dave

 

All I want is an old 308. I make enough to buy one of those at around 32K. I know they used to fetch as much as 70k. For that car that would be silly. I would never pay that kind of money for any car, even if I made 10X what I make now! I mean, come on now...it's just a car. If I had 500K I'd start buying up used manufacturing equipment and start my own company!

 

what a fun thread. my ROI from ownership is priceless. No I don't make 1M nor do I own 5 cars. contemplating if next toy car will be used Ferrari or Lamborghini. I agree with other above, can't justify the sizeable depreciation of buying new. That just means I don't make enough moola!

 

Love this! Seeing how I stack up.....

-- Annual household income of $1 million or more. Income, hah. Less than 20%

-- Ninety-eight percent are male. I'm a guy.

-- Age: 35 to 55 years old. Ahead of the curve, was 27 when I bought my 550. I'm 28 now.

-- Occupation: professionals, entrepreneurs and high profile individuals; 82 percent are self-employed. Former entrepreneur, currently leading Innovation at a company.

-- College graduates: 79 percent. Syracuse University 13'

-- Post-graduate degrees: 39 percent. Nope.

-- Half the Ferrari owners own five or more cars and 65 percent own more than one Ferrari. I own one car, a 550 Maranello. In my life I've owned a total of 3 cars.

FIGHT THE POWER!

 

Replying to surveys is so random - whether the responder was truly honest or just giving aspirational answers (who knows!).

I do, however, think the responses are directionally correct. I do think generally that the buyer is a highly educated, older person, most likely a car guy, with high disposable income and has amassed a certain amount of wealth. Also likely to be a senior manager or entrepreneur where the ownership of the Ferrari is a third or fourth car driven solely for pleasure. It would also not be uncommon where they may have a mid engine V8 and a GT Ferrari. The ownership of a Ferrari is purely discretionary and such expenditure is simply a matter of that they want it and can have it.

 

It seems to me this was a poll about American (US) Ferrari owners. Because, feel free to correct me, aren't a ton of these cars owned by English Barons, Saudi Shrieks, Chinese/Russian commodity oligarchs, and Latin American dope dealers?

 

Interesting thread.. Just watching a Dodgers game with volume off and laughing at some of the
comments... Cash is king and you can only spend a dollar once... so why pay cash for
a depreciating asset when you can finance with 1.99% interest. Ok I am a business owner
so there may be some advantages of this, like using the thousands saved and purchasing
inventory to sell at a profit of 100% pay my monthly $50-80 whatever in interest against
the loan, enjoy the car drive it, relax and decide if I should add a line item to all invoices
call FSC (Ferrari Surcharge) of .095 cents per gallon of product. While driving consider
marketing outlets, increase market share and let the market purchase the vehicle while
the FSC acts as direct counter to the cost. And of course purchase whatever vehicle
it will be Merc, Maserati, Ferrari, Lear Jet, Honda used to avoid the big depreciation hit,
while having a end of road asset to resale into the market. Name of the game is cash flow
management of that cash flow and to not be greedy for what would stress such flow.
There is always fat on the cow find it cut it & you may find hundreds of dollars being
wasted monthly that can counter the monthly vehicle cost...

TRW