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Partner wants to buy a Super Car worth 150k

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  • #76







    Any car aficionados out there? My partner knows I’m frugal and so he asked me what the smartest way to buy a supercar is. I’m not sure but if it was up to me it’d be paying straight cash. But he argued taking out a loan and investing the “saved” money elsewhere to make his money work for him and not tie it up in a depreciating asset.

    I get his logic but there is uncertainty if he invests his money and if we go into a recession, well he paid more for the car (due to interest) and lost money. To me it’s a gamble.

    I’d rather just pay the car with cash and so you know exactly what you have in it.

    He likes to buy cars, drive for 2-3 years, then sell and get something else.

    What would you do? Anyone here own a luxury/sports car 150k or more?

     

    Spare me the “I drive a 1927 Ford Model T and it gets me Point A to Point B because I cut holes in the bottom to run it like the Flintstones so I don’t pay for gas either.”

     

     

     

     
    Click to expand…


    We have a SUV in that price range.

    We paid cash for it. We were considering leasing it since we also like swapping out cars often but lease terms for cars in this price range are often unfavorable.

    I would not play this game if I had to take a loan out.
    Click to expand...


    "Having" to take a loan out and taking a loan out because you think it's a better financial decision are two different things.

    Comment


    • #77




      I’ll chime in since I bought a 150K entry level supercar last year.

      While I could have paid cash, my approach was putting down enough cash that I will never be “upside down” on it and I do extra shifts each month to make the payment. If I ever reach the point where I decide the amount of extra work required to keep it isn’t worth it (not likely), I’ll get rid of it. No harm, no foul as it was all play money anyways.

      I notice that some are quick to judge but it’s hard to understand the draw if you are not a car guy. Car guys don’t do it for the luxury or prestige but because they appreciate the engineering, technology, and most importantly the way it drives, even when not thrashing it around a racetrack.

      Another misconception is that a person that buys such vehicles makes poor financial decisions. While it is an expensive hobby, as long as your are putting away a 1/3 of your income for investments, I don’t see the issue with it. Isn’t that the reason we work? Or is the goal to stop working in less than 10 years after spending 26 years in school/residency getting the degree.

      I give your partner the go ahead. You live only once. These cars are far enjoyable in my early to mid thirties than when you are 50+ and can barely get in and out.

      An added perk is the car community. I’ve met so many new and interesting friends thru car events in the past year. You also quickly learn that doctors are the small fish when you get to the 150K+ range.
      Click to expand...


      Why did you choose to finance over cash? How much extra in interest is the car costing you overall?

      Comment


      • #78
        “My partner knows I’m frugal and so he asked me what the smartest way to buy a supercar is.”

        •Don’t buy it
        •Procrastinate until the urge goes away
        •DEA confiscated property auctions
        •Private party distress sale
        •50% of lowest asking price you can google.
        •Use Edmunds, NADA, Kelley Bluebook to find lowest price and offer 5% lower.

        Hope your partner likes to haggle.

        Comment


        • #79
          Honestly if you can stomach not buying brand new, and dont hold forever it may not cost as much as you think. Let someone else take the depreciation hit. Check sites like ebay, etc...can get a ferrari for reasonable even, no one has to know when you're on the road you didnt buy it brand new.

          Comment


          • #80







            I’ll chime in since I bought a 150K entry level supercar last year.

            While I could have paid cash, my approach was putting down enough cash that I will never be “upside down” on it and I do extra shifts each month to make the payment. If I ever reach the point where I decide the amount of extra work required to keep it isn’t worth it (not likely), I’ll get rid of it. No harm, no foul as it was all play money anyways.

            I notice that some are quick to judge but it’s hard to understand the draw if you are not a car guy. Car guys don’t do it for the luxury or prestige but because they appreciate the engineering, technology, and most importantly the way it drives, even when not thrashing it around a racetrack.

            Another misconception is that a person that buys such vehicles makes poor financial decisions. While it is an expensive hobby, as long as your are putting away a 1/3 of your income for investments, I don’t see the issue with it. Isn’t that the reason we work? Or is the goal to stop working in less than 10 years after spending 26 years in school/residency getting the degree.

            I give your partner the go ahead. You live only once. These cars are far enjoyable in my early to mid thirties than when you are 50+ and can barely get in and out.

            An added perk is the car community. I’ve met so many new and interesting friends thru car events in the past year. You also quickly learn that doctors are the small fish when you get to the 150K+ range.
            Click to expand…


            Why did you choose to finance over cash? How much extra in interest is the car costing you overall?
            Click to expand...


            Maybe 3 or 4K interest over 36 month loan. I just financed part of it as it was cheap money and it gives me a moonlighting target every month. I pay for all of my frivolous purchases from money made from extra work only. Allows me gauge exactly whether the toys are worth it as I know exactly how much I'm working to pay for them specifically. I can get rid of the toys and stop working extra anytime I want should I decide it isn't worth it. Easy way to contain the costs.

            Comment


            • #81




              Honestly if you can stomach not buying brand new, and dont hold forever it may not cost as much as you think. Let someone else take the depreciation hit. Check sites like ebay, etc…can get a ferrari for reasonable even, no one has to know when you’re on the road you didnt buy it brand new.
              Click to expand...


              Absolutely, a lot of my buddies have car ADD and switch cars every couple years. The nice thing about sport cars is if you have a model desired by enthusiasts and its fully depreciated, you can essential drive it around for free or even make a couple grand when you sell it. Sure maintenance costs are higher but beats driving a Camry. You can buy a Ferrari 360 or F430 for 75-100k with the major already done, drive it for a couple years, spend maybe 1.5-2K a year on maintenance and 1-1.5K on insurance, and dump it for the same price and find the next toy.

              Comment


              • #82







                Honestly if you can stomach not buying brand new, and dont hold forever it may not cost as much as you think. Let someone else take the depreciation hit. Check sites like ebay, etc…can get a ferrari for reasonable even, no one has to know when you’re on the road you didnt buy it brand new.
                Click to expand…


                Absolutely, a lot of my buddies have car ADD and switch cars every couple years. The nice thing about sport cars is if you have a model desired by enthusiasts and its fully depreciated, you can essential drive it around for free or even make a couple grand when you sell it. Sure maintenance costs are higher but beats driving a Camry. You can buy a Ferrari 360 or F430 for 75-100k with the major already done, drive it for a couple years, spend maybe 1.5-2K a year on maintenance and 1-1.5K on insurance, and dump it for the same price and find the next toy.
                Click to expand...


                I've done this exact thing for a while. I usually hold for 2-4 years. My last two were a 2006 Honda S2000 and a 2005 Acura NSX. Those are just two of several desirable "used" sports cars that really have no depreciation. In fact, I sold both of those cars for more than my purchase price. In the case of the NSX, quite a bit more.

                Comment


                • #83







                  Honestly if you can stomach not buying brand new, and dont hold forever it may not cost as much as you think. Let someone else take the depreciation hit. Check sites like ebay, etc…can get a ferrari for reasonable even, no one has to know when you’re on the road you didnt buy it brand new.
                  Click to expand…


                  Absolutely, a lot of my buddies have car ADD and switch cars every couple years. The nice thing about sport cars is if you have a model desired by enthusiasts and its fully depreciated, you can essential drive it around for free or even make a couple grand when you sell it. Sure maintenance costs are higher but beats driving a Camry. You can buy a Ferrari 360 or F430 for 75-100k with the major already done, drive it for a couple years, spend maybe 1.5-2K a year on maintenance and 1-1.5K on insurance, and dump it for the same price and find the next toy.
                  Click to expand...


                  How do you know when a car has fully depreciated?

                  Comment


                  • #84










                    Honestly if you can stomach not buying brand new, and dont hold forever it may not cost as much as you think. Let someone else take the depreciation hit. Check sites like ebay, etc…can get a ferrari for reasonable even, no one has to know when you’re on the road you didnt buy it brand new.
                    Click to expand…


                    Absolutely, a lot of my buddies have car ADD and switch cars every couple years. The nice thing about sport cars is if you have a model desired by enthusiasts and its fully depreciated, you can essential drive it around for free or even make a couple grand when you sell it. Sure maintenance costs are higher but beats driving a Camry. You can buy a Ferrari 360 or F430 for 75-100k with the major already done, drive it for a couple years, spend maybe 1.5-2K a year on maintenance and 1-1.5K on insurance, and dump it for the same price and find the next toy.
                    Click to expand…


                    How do you know when a car has fully depreciated?
                    Click to expand...


                    You don't know for certain but somewhere around 8-10 years old depreciation is very minimal. If you find an accident free, relatively low mileage, stock, and well cared for car, depreciation should not be an issue. "Car guys" frequently get bored with their current garage queen and want to move onto something else. A 2009 or older Porsche 911 would be an example. A Lotus Elise is another. I enjoy the research and hunt for my next acquisition. This is just one way to enjoy some great cars without breaking the bank.

                    Comment


                    • #85













                      Honestly if you can stomach not buying brand new, and dont hold forever it may not cost as much as you think. Let someone else take the depreciation hit. Check sites like ebay, etc…can get a ferrari for reasonable even, no one has to know when you’re on the road you didnt buy it brand new.
                      Click to expand…


                      Absolutely, a lot of my buddies have car ADD and switch cars every couple years. The nice thing about sport cars is if you have a model desired by enthusiasts and its fully depreciated, you can essential drive it around for free or even make a couple grand when you sell it. Sure maintenance costs are higher but beats driving a Camry. You can buy a Ferrari 360 or F430 for 75-100k with the major already done, drive it for a couple years, spend maybe 1.5-2K a year on maintenance and 1-1.5K on insurance, and dump it for the same price and find the next toy.
                      Click to expand…


                      How do you know when a car has fully depreciated?
                      Click to expand…


                      You don’t know for certain but somewhere around 8-10 years old depreciation is very minimal. If you find an accident free, relatively low mileage, stock, and well cared for car, depreciation should not be an issue. “Car guys” frequently get bored with their current garage queen and want to move onto something else. A 2009 or older Porsche 911 would be an example. A Lotus Elise is another. I enjoy the research and hunt for my next acquisition. This is just one way to enjoy some great cars without breaking the bank.
                      Click to expand...


                      Even just a few years old can be impressive.

                      Comment


                      • #86







                        People don’t just buy performance. They buy exclusivity. A Chevy won’t cut it, especially at 50K.
                        Click to expand…


                        A lot of people also look at value.

                         

                        The new Corvette looks to be a tremendous value if you are looking for a high performance car.
                        Click to expand...


                        It's may be a value relatively speaking, but it's not what us true supercar folks look for. Far beyond performance we are looking for exclusivity as previously mentioned, racing heritage, pioneered engineering, aesthetics, and not just rate of depreciation but potential appreciation from rare models which are harder to find with mass production Corvette or even more widely produced exotics like mine. I wasn't looking at resale value because I have fun with mine.

                        It's good if you are just looking for performance, just as if you're looking for a big house, you don't buy an oceanfront home if you want value (you'll get a much better price per square foot inland).

                        I'm just explaining how one thinks when we are in this type of market and we are clearly not value oriented. From the comments here there seems to be limited understanding of why these exotics are sought and what they do for the customer beyond the drive. I understand why someone would buy a $4M Veneno or a $3M Enzo because I understand it, else why would someone buy an Enzo versus my Ferrari? Same thing. One may pay $50K because that is what they can afford, I paid $160K because that was what I can afford to get the benefits of more exclusivity and heritage, another may be able to afford $4M for a vehicle that is appreciating. I'm not so naïve as to say I am any smarter than them.

                        OP's business partner wants to be financially savvy with this purchase. If value is their perspective, they should not buy a $150K supercar. I discussed maintenance and repair costs that do not lend to value. Premiums are paid for overall ownership experience, by definition the value approach doesn't work with these exotics given financial value is priced into more mass produced vehicles, even with comparable performance.

                        Comment


                        • #87










                          People don’t just buy performance. They buy exclusivity. A Chevy won’t cut it, especially at 50K.
                          Click to expand…


                          A lot of people also look at value.

                           

                          The new Corvette looks to be a tremendous value if you are looking for a high performance car.
                          Click to expand…


                          It’s may be a value relatively speaking, but it’s not what us true supercar folks look for. Far beyond performance we are looking for exclusivity as previously mentioned, racing heritage, pioneered engineering, aesthetics, and not just rate of depreciation but potential appreciation from rare models which are harder to find with mass production Corvette or even more widely produced exotics like mine. I wasn’t looking at resale value because I have fun with mine.

                          It’s good if you are just looking for performance, just as if you’re looking for a big house, you don’t buy an oceanfront home if you want value (you’ll get a much better price per square foot inland).

                          I’m just explaining how one thinks when we are in this type of market and we are clearly not value oriented. From the comments here there seems to be limited understanding of why these exotics are sought and what they do for the customer beyond the drive. I understand why someone would buy a $4M Veneno or a $3M Enzo because I understand it, else why would someone buy an Enzo versus my Ferrari? Same thing. One may pay $50K because that is what they can afford, I paid $160K because that was what I can afford to get the benefits of more exclusivity and heritage, another may be able to afford $4M for a vehicle that is appreciating. I’m not so naïve as to say I am any smarter than them.

                          OP’s business partner wants to be financially savvy with this purchase. If value is their perspective, they should not buy a $150K supercar. I discussed maintenance and repair costs that do not lend to value. Premiums are paid for overall ownership experience, by definition the value approach doesn’t work with these exotics given financial value is priced into more mass produced vehicles, even with comparable performance.
                          Click to expand...


                          Entrepreneur MD, I challenge you to post a picture of your car, and I will do the same....

                          FLP

                          Comment


                          • #88
                            He already did on the first page (link)..now post yours!

                            Comment


                            • #89




                              He already did on the first page (link)..now post yours!
                              Click to expand...


                              nope doesn't count. got to be a separate photo, not a for sale photo from some website. i'm not holding my breath...

                              Comment


                              • #90
                                https://ibb.co/HphmVqj

                                FLP's car, 28K out the door, superior to the ferrari in almost all aspects other than "exclusivity" LOL

                                If FLP notices a scratch on the car, instead of hyperventilating, FLP will just shrug and move on with life.

                                Comment

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