A BMW? Or A Civic Plus A Ferrari?
A few years ago I came up with the idea that buying a fancy car can be a real waste of money. Even if you are a “car guy” (like me), chances are that 360 days of the year you use your car to simply get you from A to B. Perhaps at most, you might go for a Sunday drive or a weekend road trip and really want to enjoy the sight and sound and visceral feel of a highly tuned car, maybe you want a “car” for a handful of days per year.
That being the case, instead of buying that BMW (or whatever), maybe you should buy a Civic (or whatever) instead. That way you can drive a Ferrari every now and then.
Say what?
Yes, that’s right. If you were willing to spend $750/month on that fancy BMW lease you would be willing to pony up $9,000/year. Not to mention paying for premium gas, and more expensive insurance. A bare bones civic (at least at the time I originally thought of this) could be had for as little as $200/month, or $2,400/year. This leaves you with $6,600 left over plus the savings on gas and insurance – call it $8,000 in total savings.
To rent a Ferrari F430 in Toronto for a Friday to Sunday (includes 300km of use) costs $2,999. Extra insurance per day is $99. So two of these weekends would cost you approximately $6,600. I got these prices from GTA Exotics, but I am in no way affiliated with them.
That leaves you with $1,400 left in your pocket. Good for a last minute trip down south in the winter to boot. 
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Comment by Rendell @ BrandlessBlog.com on 20 January 2009:
Hi,
I think that is really a very very good suggestion.
You get to:
1) Continue Driving (A to B)
2) Save on monthly expenses
3) Experience: driving your dream car (optional)
It’s a WIN-WIN-WIN solution!
Rendell
BrandlessBlog.com
Comment by Brian on 20 January 2009:
Yes Preet, mixing finance and cars. What a good way to start the day.
Comment by Dillon on 20 January 2009:
Spend at least some time with the Ferrari pulling up beside BMW’s at stoplights and revving the engine. Trust me, they will instantly recognize you as a fellow automotive enthusiast and give you a big thumbs up!
Pingback by This and That: Bank of Canada Rate Cut, Warren Buffet Interview and more… on 22 January 2009:
[...] you are a car guy or gal, you might be interested in Preet’s tip on buying a civic and renting a Ferrari, instead of buying a [...]
Comment by Charles in Vancouver on 23 January 2009:
My idea of a cool car is a hybrid
So I’m a member of the Co-operative Auto Network in Vancouver which has plenty of car types. I don’t own a car, but if I ever want to impress some cute eco-conscious boy on a date, I can cheaply take out one of their Priuses and pick him up at his door
Pingback by Four Pillars Investing on 23 January 2009:
[...] had an interesting idea about buying a Civic and renting a Ferrari. I’ve never rented a fancy sports car but I always thought that renting made a lot more [...]
Comment by Preet on 23 January 2009:
I like hybrids too – but mostly for the fact that some of them run silently at low speeds and low loads – it’s cool in a freaky way.
The thought of saving money on fuel (even though the outlay may be greater) is more psychologically pleasing as well…
Comment by Mark on 23 January 2009:
Couple of years back I was in the market for a Volvo C70; I wanted that convertible like there was no tomorrow!!
I sat down with my wife & did the math… We ended up buying a Mazda5 – enough room for us campers – and once in a while, I indulge in renting one to drive out for the week-end!!
The fun part of it is that even with all that as expenses, we’re still able to go on 2 cruises per year!!!
Talk about putting your money where your mouth is!!
Great suggestion for us car guys.
Mark