Gift for my wife. Bad idea?

[MagickMan]

My wife will soon be graduating with her PhD, it's a huge deal and she's worked incredibly hard. I want to get something special for her, and her favorite car of all time is the Ferrari 550/575. While it isn't my favorite Stallion, I like the way they look too. I've seen that prices on these have dropped like a rock, with really well maintained, low-mileage examples selling for under $90k. After some searching, I found a 2004 575M in her favorite car color (silver) with 9k miles, F1 Auto gearbox, all the options available that year, clean Carfax, and it looks immaculate inside and out. They'll take $80k for it, and I might be able to come down a little more. I'm aware of maintenance prices, and exotic Italians aren't what anyone would call incredibly reliable, but is it a really bad idea? Should I look at something else instead, maybe like an '08 or '09 Mas GranTorismo? They're priced in the same ballpark and I'd say it's her second favorite.

 

[satyajitmenon]

As a daily driver, hell no. As a toy, hell yes.

 

[nerp]

Does she really dream about driving around in a Ferrari, or do you?

 

[MagickMan]

As a daily driver, hell no. As a toy, hell yes.

Not a DD, it would be something like a weekend toy.

Does she really dream about driving around in a Ferrari, or do you?

If it were for me, I'd get a DB9.

 

[Sulaco]

BETA. Not an M3.

 

[MagickMan]

BETA. Not an M3.

No, not an M3.

 

[_Rick_]

If you can pay cash, sure why not.

Otherwise, it's probably a terrible idea

 

[SearchMaster]

Is the maintenance still as bad as the old horror stories? Someone here had posted that some models had 5 figure engine work every 15000 miles or so - surely that's not the case any more.

 

[MagickMan]

If you can pay cash, sure why not.

Otherwise, it's probably a terrible idea

Oh yeah, it's cash, definitely not on credit.

Is the maintenance still as bad as the old horror stories? Someone here had posted that some models had 5 figure engine work every 15000 miles or so - surely that's not the case any more.

That's one of my worries. Regular maintenance is expected, dropping $10k every time I turn around would be harsh.

 

[ponyo]

Why would it be a bad idea if that's her favorite car and you're aware of potential maintenance costs? It's only bad idea if you can't afford it.

 

[EagleKeeper]

Unless you have the spare $$ lying around; can you afford to make the payments on this using just your income?

As a gift to her, you should not expect her to pay for it.
Even though graduating; you have no idea what her expected income level may be and when it will start.

Most lending places will go no more than 6 years on a used vehicle.

80/6 is ~$15K year with interest costs
That is $1200 month.
Add in $12K insurance
Another $1000 month

You have that $2200/month in disposable income that you can plan for over the next 6 years?

Even if you pay cash for it; the insurance costs will still exist.

 

[Naeeldar]

Unless you have the spare $$ lying around; can you afford to make the payments on this using just your income?

As a gift to her, you should not expect her to pay for it.
Even though graduating; you have no idea what her expected income level may be and when it will start.

Most lending places will go no more than 6 years on a used vehicle.

80/6 is ~$15K year with interest costs
That is $1200 month.
Add in $12K insurance
Another $1000 month

You have that $2200/month in disposable income that you can plan for over the next 6 years?

Even if you pay cash for it; the insurance costs will still exist.

Probably shoudl read the thread. he's paying for the car in cash.

To OP. Big piece is to way the ongoing costs.. If it's to heavy get her second favorite car which she will still love obviously. And she need never know about this one.

 

[ponyo]

Unless you have the spare $$ lying around; can you afford to make the payments on this using just your income?

As a gift to her, you should not expect her to pay for it.
Even though graduating; you have no idea what her expected income level may be and when it will start.

Most lending places will go no more than 6 years on a used vehicle.

80/6 is ~$15K year with interest costs
That is $1200 month.
Add in $12K insurance
Another $1000 month

You have that $2200/month in disposable income that you can plan for over the next 6 years?

Even if you pay cash for it; the insurance costs will still exist.

$12k a year for insurance? . This $80k Ferrari, not $3 million Bugatti Veyron

 

[Naeeldar]

$12k a year for insurance? . This $80k Ferrari, not $3 million Bugatti Veyron

Eagle is obviously giving the standard advice for financials not really realizing the type of person who would be buying a car like this.

Honestly I'd be shocked if insurance is much more than 1600-2000 a year for full coverage. I just got quotes for an 2013 s4, $60k car, and at 28 with no points I'll pay 1,350 a year. I'm assuming with marriage and the OP being older they will see an even higher discount.

 

[jagec]

That's one of my worries. Regular maintenance is expected, dropping $10k every time I turn around would be harsh.

If I owned a Ferrari, I would want to do my own work...not only would it save money, but with beautiful machines like that, wrenching has to be half the fun!

Just like old British motorcycles...

Of course, that's not for everyone.

Also, I'm working on getting my PhD as well. Can I marry you?

 

[EagleKeeper]

Probably shoudl read the thread. he's paying for the car in cash.

To OP. Big piece is to way the ongoing costs.. If it's to heavy get her second favorite car which she will still love obviously. And she need never know about this one.

Timing of the posts.
He posted the cash payment while I was writing up my post.

 

[EagleKeeper]

$12k a year for insurance? . This $80k Ferrari, not $3 million Bugatti Veyron

Eagle is obviously giving the standard advice for financials not really realizing the type of person who would be buying a car like this.

Honestly I'd be shocked if insurance is much more than 1600-2000 a year for full coverage. I just got quotes for an 2013 s4, $60k car, and at 28 with no points I'll pay 1,350 a year. I'm assuming with marriage and the OP being older they will see an even higher discount.

A high powered car for a person that is probably not even 30.

Liability and collision insurance will not be $1200/yr.

 

[Naeeldar]

A high powered car for a person that is probably not even 30.

Liability and collision insurance will not be $1200/yr.

I'd said 1,800. Given the OP's post and paying in cash I'm making the assumption at a minimum they are in their 30's. The one piece I don't know is if a Ferrari has a premium compared to say a 90,000 range rover or a $60,000 S4. Even if it does I can't see it being more than 3k for a full year of coverage. But I don't know how exotics play into effect. I've only had experience with 60-100k cars personally.

But I can tell you I looked at a range of cars recently for 50-65k all high powered and at 28 the highest quote was 1,750 a year full coverage, coverage for no insured, and $100, $200 deductible.

 

[jagec]

A high powered car for a person that is probably not even 30.

Liability and collision insurance will not be $1200/yr.

The average PhD graduate is over 30. Also, she is female and married.

I just ran a quote on Liberty Mutual for a 30-year-old married female driving the car in the OP 3000 miles a year, and it gave me an automated quote of under $900/year with a $500 comprehensive/collision deductible.

A Ferrari-specific insurance site (might be more accurate) gave me a quote of $1800/year, but that was a nicer insurance package.

Either way, insurance is certainly not going to break the bank for a couple that can afford an $80k car in the first place.

 

[halik]

Deferred maintenance will kill you on this. Belt service + waterpump is in the neighborhood of 8K, plus F1 pumps are more or less wear items.

Insurance will probably be very reasonable, I'm paying $47/mo for a 911 4s.

 

[cbrsurfr]

Eagle is obviously giving the standard advice for financials not really realizing the type of person who would be buying a car like this.

Honestly I'd be shocked if insurance is much more than 1600-2000 a year for full coverage. I just got quotes for an 2013 s4, $60k car, and at 28 with no points I'll pay 1,350 a year. I'm assuming with marriage and the OP being older they will see an even higher discount.

My buddy has a 2005 F430 and pays less than I do for my GTI which is about $750/year.

He had like a 20K claim on it too when a jackass tailgated and rear-ended him. Police never tracked him down after he took off.

 

[Viper GTS]

A high powered car for a person that is probably not even 30.

Liability and collision insurance will not be $1200/yr.

Insurance on my Viper was $900 a year at 28 when I bought it. Once you're in your mid to upper 20's with a clean record the prices are remarkably reasonable.

On the 575 decision:

One of the most beautiful cars ever made, buy it and buy it now.

Viper GTS

 

[Zap]

Do it, before someone talks you out of it.

Would I daily drive a Ferrari? Only if I get to choose which one. Oh yeah, and only when it isn't snowing (or if I moved to some place it doesn't snow). I've actually considered the Ferrari 355. Some higher mileage examples of those can be found as cheap as around $30k, which is what we paid each for our WRX and Mazdaspeed 6, and thus in the realm of affordable. I've heard those were reasonably reliable for an exotic car. Performance is similar to the WRX, so not shabby but not crazy either. Old enough to have a manual transmission (the non-F1 variants at least) and no traction control. Oh yeah, and pop-up headlights.

 

[NAC]

I wouldn't spend a large amount of discretionary income on a gift, especially not as a surprise.

Say you spend 400k a year discretionary income on this and that - vacations, cars, houses, whatever. The car is 80k + lets say 20k for some repairs / maintenance over the next few years = 100k. That is 25% of your discretionary spending over a year, on one SURPRISE gift. I know you'll be able to sell the Ferrari, but still – you spent the money. That is too much IMO since you don't know if she really wants that Ferrari.

If you spend 1 million a year discretionary, then 10% is a lot - but perhaps reasonable. In my case, other than engagement ring, I never spent more than about 5% of our discretionary spending on a gift, let alone a surprise gift. I don't feel the need to buy her love, nor do I want to boost my own ego for having done it. Unless you really can afford to spend A LOT, I don't think it is a healthy sign for a person or a relationship.

That isn't to say I think you shouldn't decide to spend that much discretionary income on a car if you can and want to. I just think you should make the decision together, and enjoy making the decision (and shopping, etc) together. That is a lot of the fun of buying something - getting to decide and think about it.

 

[halik]

I wouldn't spend a large amount of discretionary income on a gift, especially not as a surprise.

Say you spend 400k a year discretionary income on this and that - vacations, cars, houses, whatever. The car is 80k + lets say 20k for some repairs / maintenance over the next few years = 100k. That is 25% of your discretionary spending over a year, on one SURPRISE gift. I know you'll be able to sell the Ferrari, but still – you spent the money. That is too much IMO since you don't know if she really wants that Ferrari.

If you spend 1 million a year discretionary, then 10% is a lot - but perhaps reasonable. In my case, other than engagement ring, I never spent more than about 5% of our discretionary spending on a gift, let alone a surprise gift. I don't feel the need to buy her love, nor do I want to boost my own ego for having done it. Unless you really can afford to spend A LOT, I don't think it is a healthy sign for a person or a relationship.

That isn't to say I think you shouldn't decide to spend that much discretionary income on a car if you can and want to. I just think you should make the decision together, and enjoy making the decision (and shopping, etc) together. That is a lot of the fun of buying something - getting to decide and think about it.

Err that math is kinda stupid - it's not as if he'll spend 25% of it every year. If you want to make that comparison, you should amortize it across the time he'll own it.