News

Purchasing 1st F-car

Discussion in 'Ferrari Discussion (not model specific)' started by Airbus driver, Oct 6, 2019.

  1. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Hello all. I have started my research last month on finally getting my first Ferrari. My end goal is to get a 458 being that it is the last naturally aspirated V8 and I love the style and performance (had a chance to drive an Italia, and 488GTB on a road track). I believe my problem will be financing as I’ve never purchased a car for that much and research has led me to believe that banks will typically only finance up to approximately 30-40% more than a previous vehicle purchase. My budget is around $150,000-170,000, with the ability to put 10% down. Now I’m curious if it would be easier to buy a 430 or California first for a couple years then trade it in on a 458? Not sure if that’s a good move; if so then which car would be the better choice (resale, overall investment, etc.) 430 is another favorite but I’m aware of maintenance (clutch, header, etc) whereas the California is not as loved (from what I see) but has dual clutch. Thanks in advance for any thoughts.
     
  2. Ingenere

    Ingenere F1 Veteran
    Silver Subscribed Owner

    Dec 11, 2001
    5,878
    On the Limit
    Full Name:
    Dino
    The obvious answer is which car puts the biggest smile on your face when you drive them?
     
    paulchua likes this.
  3. vrsurgeon

    vrsurgeon F1 World Champ
    Silver Subscribed

    Dec 13, 2009
    13,186
    Charleston, SC
    Full Name:
    Curt
    ALL Ferrari's may give you an expense. You buy the one that puts joy in your heart when you look at it in the garage. If you have to worry about resale.. are you really in a position to own a Ferrari? (technically as long as you make payments the BANK owns the car) My take: buy the one you absolutely love and when you buy it don't ever have to sell it.

    When I bought my 360, I financed it. I want to say I put down 5% or so.. total financed was maybe a little more than a third of what you want to borrow. Paid it off in 3 years on a 5 year loan. I've had a manual 360 that's paid off in my garage for the last 6 years. Don't have to sell.. ever. It feels really good. Now as far as appreciation, when I bought my 360.. nobody cared about 3 pedals. Now, 3 pedals have appreciated and I could *probably* make a few dollars if I ever sell it. The rub with the 458 is they're not finished depreciating. While a better car than the 430, they also have farther to fall. Combine this with a recession.. and you're loosing money. Buy in the depths of the recession NOT the peak of the boom. I doubt you will make money with ANY of the cars you've listed. There is simply no reason why a flappy paddle car is special and newer better models hit the showroom every 3-5 years.
     
  4. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    I probably wasn't a 100% clear in my post. I'm looking to do the same thing with a 458, buy it and never sell it, keep it and drive the hell out of it. I'm not concerned with making money on it or the cost of ownership there, I just did not want to buy a 430 or Cali in order to up my financing options with the bank and have to put to much into something I most likely wont keep. Honestly I enjoy all Ferrari's and always have since I was a kid with matchbox. I guess then the best move would be to drive a 430 and decide whether to get one or wait until I can get the Italia.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
  5. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Good point so far I enjoyed the 458 over 488 so I'll just have to go drive a 430 and a Cali.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
    vrsurgeon likes this.
  6. vrsurgeon

    vrsurgeon F1 World Champ
    Silver Subscribed

    Dec 13, 2009
    13,186
    Charleston, SC
    Full Name:
    Curt
    Nice thing about the Cali is the rear seats if you have a family! As they drop in price they become more appealing as a family car...
     
    I'm 360 Canuck likes this.
  7. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Married but no kids. I actually love the front end of the Cali but the back is just a little something off for me. But it sounds great and watched some reviews and seen that it performs great.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
  8. MAPS

    MAPS Karting

    Jan 13, 2017
    50
    Porto, Portugal
    Full Name:
    Marco Silva
    IMHO, if your heart is set on a 458 don't give up. Call the bank or a decent dealer (with a car you like) and they will help you.
     
    LightGuy likes this.
  9. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Ok that's kind of what I was wondering if I should do. I've searched the forums and found some banks that lend on exotics so I suppose I'll talk to some of them.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
  10. MAPS

    MAPS Karting

    Jan 13, 2017
    50
    Porto, Portugal
    Full Name:
    Marco Silva
    They will give you a clearer view of the possibilities.
     
    Airbus driver likes this.
  11. mchas

    mchas F1 Rookie
    Silver Subscribed

    Oct 5, 2004
    4,574
    Los Angeles
    Full Name:
    Mark
    This might be unsolicited advice, but if you can only put 10-15% down I would wait until you have more $ saved up. On a $150k car, you’re talking about only putting $15k down? Keep in mind it is very possible to have an issue pop up that costs that much to fix. And depending on what state you live in, sales tax could eat up almost your whole 10% leaving you underwater very quickly if prices drop.

    Just saying be careful if finances are limited. Getting hurt by this will take all the fun out of it and then some.
     
    Auraraptor, AshAP and Shark01 like this.
  12. Meister

    Meister F1 Veteran
    Silver Subscribed

    Apr 27, 2001
    5,061
    Duluth, MN
    Full Name:
    The Meister

    I'm going to agree with this "discretionary" tone for lack of a better term. A 6 figure(+) ferrari has never been within my reach but as a long time owner and many others will attest to the difference admiring from a far and actual ownership. The higher profile driving in public, the potential worrying about it left in a parking lot, and many similar unexpected aspects of ownership can take some getting used to. Not to mention a huge and unexpected repair bill can really detract from the experience. That being said I urge first time owners to start with a fully or nearly fully depreciated model and have $ in reserve for unexpected items and service as you get your feet wet in the actual ownership experience. Having too much money tied up just in the car can stress the situation again to the point of a non positive experience.
     
  13. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Appreciate the thought. Reason for the 10% is because I have planned to to have 30k disposal cash for unforeseen parts/repairs as well as the 7% NJ tax. I assumed this would be sufficient but please correct me if I'm wrong. I also still make a pretty comfortable loving now but by no means am I rich. Also I have a 4 post lift for my garage and bave always done my maintenance myself, (its my hobby) save for electrical problems.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
  14. 3POINT8

    3POINT8 Formula 3

    Jan 23, 2014
    2,024
    I would just wait and buy the 458 when you can afford it. Why buy a car you don't love that you really can't afford? I am sure the bank would be more willing to finance if you have more funds saved up then past ownership of a car. What if something happens to the F430/Cali and eats up your reserve? I had an electronic sensor go out in my F430 and it cost me $1k just for the part yet alone labor. What about if the clutch goes out? Or what if you get in a fender bender and it has an accident on the record and you have to sell it at a discount? No you've lost a bunch of money and the 458 is even further out. If your budget is up to $170k now then it seems like the 458 is just around the corner for you. If you hang tight for a year or less I bet you could get in a 458.
     
  15. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Thanks for your thought. I have actually decided to wait a year and buy the car I want. I will actually after talking to my wife (who's an CPA) if I wait I can actually up my budget to about 200k. Who knows maybe the price will drop even more and I can get exactly what I want. Thanks to all who did share their thoughts.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
  16. tbakowsky

    tbakowsky F1 World Champ
    Professional Ferrari Technician Consultant

    Sep 18, 2002
    14,826
    The Cold North
    Full Name:
    Tom
    Have you priced a brake job? Or other consumables? Take into account, those fancy CCB brakes cost 10k a corner..ready for that?
     
  17. ChadR

    ChadR Karting

    Jun 19, 2019
    202
    I'm not in the position to tell anyone what to do with their money, but unless it's an investment, I usually don't buy anything unless I can afford it twice.

    But do what makes you happy.
     
  18. Portofino

    Portofino Karting

    Sep 17, 2011
    186
    Yorkshire UK / Switzerland/ Cote d Azur
    Full Name:
    Portofino
    The one I enjoy most , ownership and running costs is the Dino GT4 .
    It’s got Webber’s a gated box and is easy to DIY being an analogue car .
    I have had a testarossa 9 years with its engine out big services and funny handling on corners due to the rear weight balance .
    I had a flappy paddle 360 for 9 years full of ECU ,s and there ensuring disconnection from the road .It had power steering as well .
    They both cost zero net .As the appreciation exceeded the Ferrari dealer stamp in the book fees .

    How ever for pure joy of driving the sound , handling and power delivery in the GT 4 chassis is exactly what I spent 18 years hunting for .I,am loving the DIY able ness and low running costs .
    As far as capital appreciation...... that’s a side show .
     
    308 milano and ChadR like this.
  19. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Yes I am aware of the cost of regular maintenance and part cost. Thank you.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
  20. Rosso328

    Rosso328 F1 Veteran
    Rossa Subscribed Owner

    Dec 11, 2006
    5,741
    Central FL
    Full Name:
    Paul
    Can I ask you about this? Lots of folks have weighed in in budget etc, and it sounds like you have a decent reserve for expenses popping up, so good on you.

    But not financing more than 30-40% over a previous vehicle purchase? I’ve been in banking / lending / credit for over 30 years and have never heard this before. I’m curious as to what research leads you to believe that. Or which bank you have spoken to that has stated it as a policy.

    Of course I appreciate if you would rather not share, but a big focus of mine professionally over the past few years has been debunking the common knowledge myths that are just plain false.
     
  21. Airbus driver

    Airbus driver Rookie

    Jul 3, 2019
    14
    Full Name:
    Timothy D DeZutti
    Yes thank you for understanding my actual question. I try not to re-explain myself to thise chimimg in as I don't argue with people on forums. I haven't talked to any banks as of yet. I was reading on some forums and watched some videos of buy exotics and have seen this listed on several. If your saying that this is not true than this is good news and I should be able to get the vehicle I really want then? My next move then will be to talk with some banks I assume.
    Sent from my SM-G965U using FerrariChat.com mobile app
     
  22. artsd

    artsd Karting
    Silver Subscribed Owner

    May 6, 2009
    129
    Full Name:
    Art
    Ed Bolian from VINwiki (who used to sell new Lamborghinis) did a video about exotic car financing and in it he mentions that most banks don't want to loan an amount more than 50% or 100% over your highest previous loan. So even if your credit score and income are great, a bank doesn't want to loan you $200k on a car if your highest previous car loan was $20k. He does mention exceptions like very high income or very large down payment. I have no idea if that is accurate or not but just wanted to let you know where some people are getting this idea.
     
  23. Auraraptor

    Auraraptor F1 World Champ
    Owner Lifetime Rossa

    Sep 25, 2002
    11,034
    MO
    Humor me for a minute: now that you are waiting a year...you could divert the funds you otherwise would have been using....essentially allowing you to rapidly grow your downpayment, no?
     
    BOKE likes this.
  24. LightGuy

    LightGuy Three Time F1 World Champ
    Silver Subscribed

    Oct 4, 2004
    30,945
    Texas
    Full Name:
    David
    #24 LightGuy, Oct 27, 2019
    Last edited: Oct 27, 2019
    IMO 458 prices have stabilized. Also consider a SCUD as they are truly special cars and have also bottomed out.
    Normally Im against financing depreciating "assets" but if you have a stable secure job then why not ?
    Its not like a new BMW, Mercedes etc etc where you lose your shorts in depreciation.
    And banks consider those loans to be rational. I dont get it.

    Interest rates are at historic lows and banks that I have dealt with could care less about how much my last car was.
    Its all about can they be assured of security on THIS loan.
    Try credit unions also.
    Woodside and Lightsteam are last resorts because of the interest you pay over time and of course the interest is paid off first.

    I financed a GT2 when that model car (which I had been following for years) suddenly started to appreciate.
    My cash money was tied up elsewhere at the time.
    Glad I did.

    Secured the car and paid off the loan later when the money freed up.

    Yes; Doing your own maintenance will save you a fortune.
     

Share This Page