How do you afford supercars?
Discussion
This isn't meant to be rude or intrusive so please forgive me if you think this is too personal a question.
I consider myself to be well paid (I earn well in the £100k bracket) but I so don't see how so many can afford to buy new Lambo's, Ferrari's etc.
I'd love a Lambo but I just don't get how people afford them? Am I missing something and are people financing themselves to death on them or are they just earning £500k bonuses?
I feel like I'm missing something?! Where is everyone else getting this wedge from!?
I consider myself to be well paid (I earn well in the £100k bracket) but I so don't see how so many can afford to buy new Lambo's, Ferrari's etc.
I'd love a Lambo but I just don't get how people afford them? Am I missing something and are people financing themselves to death on them or are they just earning £500k bonuses?
I feel like I'm missing something?! Where is everyone else getting this wedge from!?
jofanon said:
This isn't meant to be rude or intrusive so please forgive me if you think this is too personal a question.
I consider myself to be well paid (I earn well in the £100k bracket) but I so don't see how so many can afford to buy new Lambo's, Ferrari's etc.
I'd love a Lambo but I just don't get how people afford them? Am I missing something and are people financing themselves to death on them or are they just earning £500k bonuses?
I feel like I'm missing something?! Where is everyone else getting this wedge from!?
Do you feel you have to buy new is one question ?I consider myself to be well paid (I earn well in the £100k bracket) but I so don't see how so many can afford to buy new Lambo's, Ferrari's etc.
I'd love a Lambo but I just don't get how people afford them? Am I missing something and are people financing themselves to death on them or are they just earning £500k bonuses?
I feel like I'm missing something?! Where is everyone else getting this wedge from!?
How about buying second hand and let someone else take the initial drop in value. As has been said, depends where your finances get spent/priorities are but i'm sure you should be able to run one ok if you still have disposable income at the end of the month.
There's so many factors involved and it will be very different for everyone. Take your 100k+ - have you been earning this for long? What are your monthly commitments? Renting property? Dependants? (all hypothetical, you don't have to answer).
The guy on 40k might have been earning that for the last 25 years, bought his house 20 years ago when the prices where good, has a miniscule outstanding mortgage and very little outgoings - he can leverage the huge equity on his house which has risen in value beyond anything he could have hoped to earn to finance his dream car - he buys 2nd hand to remove the initial depreciation drop and finances the rest - over a year he pays a total of 20k in interest and depreciation and moves it on - probably the same he'd lose in a year buying the top of the range lexus he was thinking about. He then sells the supercar, buys the lexus used and is all square and has ticked one of the boxes on his "life goals" spreadsheet....this is why a lot of supercars change hands frequently.
The guy on 40k might have been earning that for the last 25 years, bought his house 20 years ago when the prices where good, has a miniscule outstanding mortgage and very little outgoings - he can leverage the huge equity on his house which has risen in value beyond anything he could have hoped to earn to finance his dream car - he buys 2nd hand to remove the initial depreciation drop and finances the rest - over a year he pays a total of 20k in interest and depreciation and moves it on - probably the same he'd lose in a year buying the top of the range lexus he was thinking about. He then sells the supercar, buys the lexus used and is all square and has ticked one of the boxes on his "life goals" spreadsheet....this is why a lot of supercars change hands frequently.
I can afford it but I have to "afford" it if you catch my drift.
I only think you should buy these things if money is absolutely no question.
I've lost nearly £20k in 2 years on my Cayman and its making me cry like a big baby. Just because I have some money doesn't mean I can't distance myself from such massive losses.
If I could could buy a Gallardo, Ferrari etc and I knew exactly how much it would depreciate I'd probably do it.
I've been toying with the idea of a 360 which it seems you can pick up for £50k or so now. Perhaps that is the thing to do? Depreciation must have bottomed out?
I only think you should buy these things if money is absolutely no question.
I've lost nearly £20k in 2 years on my Cayman and its making me cry like a big baby. Just because I have some money doesn't mean I can't distance myself from such massive losses.
If I could could buy a Gallardo, Ferrari etc and I knew exactly how much it would depreciate I'd probably do it.
I've been toying with the idea of a 360 which it seems you can pick up for £50k or so now. Perhaps that is the thing to do? Depreciation must have bottomed out?
Yeah, if you get something that has gone past its initial depreciation then you're not going to lose much more that way. I lose a lot less money on an F355 than I would if I bought a brand new Mondeo at less than half the money. Srvicing cost are a little more, but then I have a friend who services these cars at cost (in return for borrowing it for a weekend).
jofanon said:
I can afford it but I have to "afford" it if you catch my drift.
I only think you should buy these things if money is absolutely no question.
That there is the issue. For a lot of people, owning their dream car is the number one priority; "you only live once" type of thing. If cutting back on holidays or other expensive luxuries is the way to achieve it, then each to their own.I only think you should buy these things if money is absolutely no question.
If you have gone and bought one and you havent gone bankrupt and you're happy with your life, then thats what matters. Not conformity to other peoples risk aversion.
jofanon - it's a 'mind-set' thing. From your limited comments here, I suspect you and I have similar attitude to mine - thanks Mum and Dad, eh! Basically brought up to think that you save up and buy things...but should never waste money. And that luxury items are exactly that - a luxury.
For me, I know I could have bought a Lambo at several times in recent months/years...but I did not as it seemed like at this stage I should be using the money to do other things. So it went on the house and buying a couple of sensible cars outright - and we have some savings.
I guess you and I both see supercars as a luxury item (yes, a highly desirable one and one which we have dreamed about since being children) and as such something that you buy when you have the purchase cost as 'disposable' cash. Lord knows I would never borrow money to buy a Playstation 3 or a quad bike, which are every bit as much 'luxury toys' as a Lambo/Ferrari - so the same kind of principle applies in my head. I agonised over spending money on my first luxury watch, which was a drop in the ocean compared to a supercar!
It's not just Ferrari's/Lambos and so on - look around on any journey and you see £60k Range Rovers, £40k Audis, etc, etc...everyone seems to have money to spend these days, but it is all about who's money you are spending.
Me? I am waiting until I can pay in full (whether I do or not will depend on any deal offered and if I can make my purchase money earn more than any finance liability!) and I tell you what - it will taste so much sweeter when I can.
P~
ETA - for the record, I don't drink or smoke or take loads of holidays. I also lost £7k in one year on an RX-8 which did 16mpg and used a litre of oil every 50 yards - so any price bracket can take your money and swallow it in a large gulp!
For me, I know I could have bought a Lambo at several times in recent months/years...but I did not as it seemed like at this stage I should be using the money to do other things. So it went on the house and buying a couple of sensible cars outright - and we have some savings.
I guess you and I both see supercars as a luxury item (yes, a highly desirable one and one which we have dreamed about since being children) and as such something that you buy when you have the purchase cost as 'disposable' cash. Lord knows I would never borrow money to buy a Playstation 3 or a quad bike, which are every bit as much 'luxury toys' as a Lambo/Ferrari - so the same kind of principle applies in my head. I agonised over spending money on my first luxury watch, which was a drop in the ocean compared to a supercar!
It's not just Ferrari's/Lambos and so on - look around on any journey and you see £60k Range Rovers, £40k Audis, etc, etc...everyone seems to have money to spend these days, but it is all about who's money you are spending.
Me? I am waiting until I can pay in full (whether I do or not will depend on any deal offered and if I can make my purchase money earn more than any finance liability!) and I tell you what - it will taste so much sweeter when I can.
P~
ETA - for the record, I don't drink or smoke or take loads of holidays. I also lost £7k in one year on an RX-8 which did 16mpg and used a litre of oil every 50 yards - so any price bracket can take your money and swallow it in a large gulp!
Edited by PhantomPH on Tuesday 29th April 10:46
Great friend of our has had a new 911 every two years for the past 6 years and lost 25k per car all on finance !! But he must have a new car and he is on les than 100k
So so far in the last 6 years he has lost 75k !!!!
In the last 6 years I had my 911 (993)for 4.5 years and mane £200 profit then had another couple of things all sold for the same as I paid for them i.e. buy soft top in winter sell in summer
An then bought the Ferrari after a bit of saving
No none of them are not new and yes I would klove a new one but I wouldnt love the depreciation 75k would have bought me the Ferrari and the 993 !!!
Just priorities
So so far in the last 6 years he has lost 75k !!!!
In the last 6 years I had my 911 (993)for 4.5 years and mane £200 profit then had another couple of things all sold for the same as I paid for them i.e. buy soft top in winter sell in summer
An then bought the Ferrari after a bit of saving
No none of them are not new and yes I would klove a new one but I wouldnt love the depreciation 75k would have bought me the Ferrari and the 993 !!!
Just priorities
Some really good responses here, thanks guys.
So it doesn't sound like everyone is on £1m a year.
A few of you certainly do seem to have the same attitude as me (as you mentioned it all comes from the parents!).
I suppose, yes you are right. If my priority was a supercar I could have one. Right now I worried about the economy, want to go travelling at some time etc.
I guess the secret is buying the RIGHT car but this is always going to be a gamble (any suggestions welcome).
To me spending £30k a year on a car seems daft when that would but a deposit on an investment flat...
Different people, different attitudes to money I suppose.
Would be interested in hearing from anyone that runs a Gallardo or 360/430 on less than £100k a year...
So it doesn't sound like everyone is on £1m a year.
A few of you certainly do seem to have the same attitude as me (as you mentioned it all comes from the parents!).
I suppose, yes you are right. If my priority was a supercar I could have one. Right now I worried about the economy, want to go travelling at some time etc.
I guess the secret is buying the RIGHT car but this is always going to be a gamble (any suggestions welcome).
To me spending £30k a year on a car seems daft when that would but a deposit on an investment flat...
Different people, different attitudes to money I suppose.
Would be interested in hearing from anyone that runs a Gallardo or 360/430 on less than £100k a year...
Beware of comparing yourself to others, you may get a warped perception of their apparent wealth. Not only are many hugely in debt, others own their cars as part of a business. However, it's surprising what you can afford on a relatively modest income if you don't smoke, drink or have kids!
As said by others, it's a matter of priorities. Many need the instant gratification of having what they want now, regardless of how they achieve it. Others will wait until they can buy without the need for finance. I saw many contemporaries who, as soon as they had a decent job, splashed out on a new car and rented a swish apartment. Whilst tempted to do the same, I preferred to put my money into property and bought second hand cars. Although somewhat derided for my low key lifestyle at the time, I'm now in a position to have the lifestyle (penthouse, supercar etc) they wanted - but importantly without the debt. However with my dislike for losing money, I won't be heading to a Lamborghini or Ferrari garage - I'll be buying a classic. I prefer my position, but I've had to wait to fulfill the dream - some would say Life's too short. In some ways they may be right as unfortunately I'm finding that, rather than helping, the so-called credit crunch means that the people who can afford the kind of car I'm after have no need to sell.
As said by others, it's a matter of priorities. Many need the instant gratification of having what they want now, regardless of how they achieve it. Others will wait until they can buy without the need for finance. I saw many contemporaries who, as soon as they had a decent job, splashed out on a new car and rented a swish apartment. Whilst tempted to do the same, I preferred to put my money into property and bought second hand cars. Although somewhat derided for my low key lifestyle at the time, I'm now in a position to have the lifestyle (penthouse, supercar etc) they wanted - but importantly without the debt. However with my dislike for losing money, I won't be heading to a Lamborghini or Ferrari garage - I'll be buying a classic. I prefer my position, but I've had to wait to fulfill the dream - some would say Life's too short. In some ways they may be right as unfortunately I'm finding that, rather than helping, the so-called credit crunch means that the people who can afford the kind of car I'm after have no need to sell.
jofanon said:
Some really good responses here, thanks guys.
So it doesn't sound like everyone is on £1m a year.
A few of you certainly do seem to have the same attitude as me (as you mentioned it all comes from the parents!).
I suppose, yes you are right. If my priority was a supercar I could have one. Right now I worried about the economy, want to go travelling at some time etc.
I guess the secret is buying the RIGHT car but this is always going to be a gamble (any suggestions welcome).
To me spending £30k a year on a car seems daft when that would but a deposit on an investment flat...
Different people, different attitudes to money I suppose.
Would be interested in hearing from anyone that runs a Gallardo or 360/430 on less than £100k a year...
I used to earn £120k+ a year as a contractor and thanks to my Ltd company, took home about 80% of that. I wouldn't have dreamed of buying a £100k+ car back then because I would have had to finance it, a scary proposition for me! Now I'm in the second income category you mention, so I don't need the finance, but I'm still finding it hard to get my head around parting with £130k for a car. Strangely if I just focus on the depreciation cost over one year (£30k max?), the period I'm planning on keeping the car, it's a lot easier for me. So it doesn't sound like everyone is on £1m a year.
A few of you certainly do seem to have the same attitude as me (as you mentioned it all comes from the parents!).
I suppose, yes you are right. If my priority was a supercar I could have one. Right now I worried about the economy, want to go travelling at some time etc.
I guess the secret is buying the RIGHT car but this is always going to be a gamble (any suggestions welcome).
To me spending £30k a year on a car seems daft when that would but a deposit on an investment flat...
Different people, different attitudes to money I suppose.
Would be interested in hearing from anyone that runs a Gallardo or 360/430 on less than £100k a year...
Daisy Duke said:
Beware of comparing yourself to others, you may get a warped perception of their apparent wealth. ... However, it's surprising what you can afford on a relatively modest income if you don't smoke, drink or have kids!
Agreed. Owning a ferrari seems to have a stigma attached that you are wealthy. Some people may specifically be after this affect, but most are not and have just gone through arrangements in order to secure a car.However I disagree with you saying its "more important" to do it without debt.
Buying a car on finance doesnt necessarily mean you are in debt, as you have an asset too. So long as your capital repayment is equal to or greater than the depreciation each month then you are fine. Paying by cash is more a psycological decision rather than a financial one.
This is one of the best topics I`ve read on this forum for some time .
Dreams are great to have but , like PhantomPh , I`ve been encouraged to see the wider picture by wise parents . In common with most of you , I could buy / lease / mortgage a fabulously expensive car , but for me , I need to prioritise my home , pension , sons etc etc .
I`ve always run lower value performance cars which Ive bought outright and with money I could afford to lose if the worst happens . It`s important to remember that the "keeping up with the Jones`s" mentality is causing some very real problems now the economy has gone off the boil , and , someone will always have better / faster / shinier than you .
PS 308 Ferrari fund growing on a monthly basis (!)
Lesson over , MickyVeloce
Dreams are great to have but , like PhantomPh , I`ve been encouraged to see the wider picture by wise parents . In common with most of you , I could buy / lease / mortgage a fabulously expensive car , but for me , I need to prioritise my home , pension , sons etc etc .
I`ve always run lower value performance cars which Ive bought outright and with money I could afford to lose if the worst happens . It`s important to remember that the "keeping up with the Jones`s" mentality is causing some very real problems now the economy has gone off the boil , and , someone will always have better / faster / shinier than you .
PS 308 Ferrari fund growing on a monthly basis (!)
Lesson over , MickyVeloce
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