Question: how rich do you have to be to buy a ferrari?
Answer: Own a $5m home free and clear, 2. Value of the car should not exceed 5% of liquid net worth (total net worth minus the house). Anything higher would hurt too much if you crashed it. With that in mind here's the magic formula for calculating whether you could comfortably buy the Ferrari: $5m house + ($250k / 5%) = $10m.