Monthly Payments Questions | FerrariChat

Monthly Payments Questions

Discussion in '360/430' started by DEAN325i, Dec 4, 2005.

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  1. DEAN325i

    DEAN325i Karting

    Dec 4, 2005
    69
    Orange County
    Full Name:
    Dean
    Hey everyone. Got another question here. Again, I plan on buying a ferrari sometime soon and I dont want to sound nosy, but my question is how much are people paying monthly for their f355 spiders, 360, and 360 spiders. I know it all depends on the interest rate and how much you put down etc. But i just want to get some kind of ballpark figure in my head so i know what to some what expect. I also heard that certain dealers offer 12 year financing? Is that true? Anyway, its your choice to respond to this thread or not. I dont want to get in anyones business, but if your willing to share that would be awesome! Thanks again.
     
  2. Sohail

    Sohail Karting

    Oct 6, 2004
    188
    USA
    Full Name:
    Sohail
    figure $16.5 to $18 per thousand financed at approx 6.5% for 60 months.

    Sohail
     
  3. J. Salmon

    J. Salmon F1 Rookie
    Owner Rossa Subscribed

    Aug 27, 2005
    4,367
    VA
    That would definitely sum it up. Not trying to be flippant, but it's math, not magic.
     
  4. Kds

    Kds F1 World Champ

    What other people are paying is totally irrelevant to your situation.

    Why ?.......you are not going to pay what they did for their cars, have their interest rate or their down payment.....etc.....

    What matters here is how much down payment you have today.....how much you want to pay for a car today.....and what the prevailing rates are today for "your" credit score and the term you want.

    Answer those questions on this thread and maybe someone in the leasing/financing business will give you an realistic idea that you can bank on.
     
  5. garysp7

    garysp7 Formula Junior

    Mar 28, 2004
    436
    Florida
    Full Name:
    Gary
    Dean:
    I think someone has to post here that financing a car for 12 years is financial insanity. You are financing a depreciating asset over a 12 year term. The value of your car will be less than your loan value immediately and will most likely never match up over the life of the loan.
    Sometimes one can justify a short term loan to avoid liquidating assets when buying a car, but not near the length you are talking about.
    As far as monthly payments, that is only relevant to you alone. Someone may have a short term loan out for a Enzo and be paying 50K per month to amortize it over a year, but that may not be applicable for your situation.
    I have always used the concept that if I can not write a check for it of pay it off in twelve months I can not afford it.
    Your financial well being should always be your primary goal.
     
  6. anunakki

    anunakki Seven Time F1 World Champ
    Owner Rossa Subscribed

    Oct 8, 2005
    78,875
    Las Vegas Nevada
    Full Name:
    Jerry
    If you are looking at an older car there are very few places that will finance a Ferrari thats older than 5 years and they charge a premium for it...forget 6.5% ..think 9-10% APR - CHASE is one of the few who do that..

    As for 12 years.. yeah but there are serious financial requirements.. you arent going to get anyone to finance $125k for 12 years...its gonna have to be $200k + for them to consider going to 12 years and you are gonna have to have top notch credit.

    I agree financing for 12 years is insanity 99% of the time. Only time I would consider it is if its a car I KNOW I will hold onto forever and it will never plummet in value..example.. 288 GTO, F40. Yes you will be paying 3 times as much for the car at the end of the day BUT if you;re positive it will make you happy and you wont want to get rid of the car after say 6 -7 years then i say go for it.
     
  7. DEAN325i

    DEAN325i Karting

    Dec 4, 2005
    69
    Orange County
    Full Name:
    Dean
    Thanks for your response everyone. LOL, about the 12 year financing thing. I brought it up because I think and agree with everyone that is crazy! Thats why i asked if that is true or not. hahaha. Dont worry, Im not that out of my mind. anyway, I guess wont get a close to definate answer on what the avg. payments people are making on their ferraris.

    From what ive been thinking in my head...for example: if i bought a $90,000 355 spider, put a $10,000 down, pay 8.6% sales tax and APR of 6.5%, then im looking at about $1700.00 a month. If i were to buy a $175,000 360 spider, and put the same down, interest rate, and sales tax, then im looking at about $3500 or so.

    I dont know, but does that sound pretty accurate? Your thoughts and knowledge is greatly appreciated. Thanks
     
  8. GrigioGuy

    GrigioGuy Splenda Daddy
    Lifetime Rossa Owner

    Nov 26, 2001
    33,107
    E ' ' '/ F
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    Snike Fingersmith
  9. 05F430F1

    05F430F1 F1 Rookie
    BANNED

    Oct 22, 2005
    3,600
    Fort Lauderdale, Florida
    Full Name:
    Todd
    I was in the business for years as finance mgr, finance director and General Sales mgr. 12 yr financing is available at simple interest, no prepay low interest. Financing a NORMAL car for 12 yrs is a little silly but financing a HIGH dollar Ferrari is not IMHO> People regularly finance 20k cars for 72 months (6 years). Keeping your monthly payments as low as possible with everything in your life will make for better living. Of course, if one actually went the entire term without paying off or extra, he would be paying much more interest charges. Whether it's a 6 yr Hyundai loan or a 12 year Ferrari loan, most pay off or trade before term end.

    Now back to the post. He asked what people are paying, not whether it should be relevant to his decision. Nor, did he ask specifics on 5 or 21 yr financing. He is just curious and nothing is wrong with curiosity. Get off your soapboxes.

    I will answer.... I pay 1703/mo for a 2005 F430.

    Gl with your decision.
     
  10. DEAN325i

    DEAN325i Karting

    Dec 4, 2005
    69
    Orange County
    Full Name:
    Dean

    I really appreciate your comment and response to this thread. This is EXACTLY what i was looking for out of this thread. Thanks again 05f430f1...Hopefully ill get more of a response like his. Thanks again.

    PS...i would love to have payments like yours! I would get the same car also!
     
  11. hardtop

    hardtop F1 World Champ

    Jan 31, 2002
    11,294
    Colorado
    Full Name:
    Dave
    Call me old fashioned. Sounds like you are payment shoppinig to see what you can afford. Bad idea, discussed many times here. I have a 89 328GTB and a 05 430 coupe. Payments are 0. House payments? 0. Car payments? ditto. If I were a payment shopper, I would never be in this position. Instead, I would making a bunch of payments on worthless crap I don't need. I'm not bragging, just giving sound advice.

    Dave
     
  12. 05F430F1

    05F430F1 F1 Rookie
    BANNED

    Oct 22, 2005
    3,600
    Fort Lauderdale, Florida
    Full Name:
    Todd
    not the correct mindset or advice, sry. I could pay cash for my 430 but WOULD NEVER do that. Not when I can have a low simple interest loan and keep my money to make me money. AND< YES I did go 12 big long stupid years. Will I take 12 yrs to pay it off? God no, but i will make more with the cash I did not put into the 430 than what I am paying in interest.

    FINANCE cars.
     
  13. sobe

    sobe Formula Junior

    Sep 24, 2005
    313
    LA/Miami
    Get the 12 year loan for the 430 and take the 200k 430 $ and use it for a down payment to pick up a nice milion dollar home you can sell for 1.2 in 12 months and pay off the 200k 12 year Ferrari loan with the profit from the house and then you own the 430 free and clear and get your 200K back.

    05F430F1 I like your 12 year finance plan and using your car money to make money . .
     
  14. DEAN325i

    DEAN325i Karting

    Dec 4, 2005
    69
    Orange County
    Full Name:
    Dean
    I like your style. hehe. is it hard to get approved for a 12 year loan? do you need perfect credit? And what percentage down do they require, if any, to get such a loan. I never really looked into financing for that long, but you have a point. Thanks.
     
  15. judge4re

    judge4re F1 World Champ

    Apr 26, 2003
    13,477
    Never home
    Full Name:
    Dr. Dumb Ass
    Call a lender and find out.

    Anything posted here will be pure speculation for your situation.
     
  16. rafo

    rafo Karting

    Jun 6, 2005
    189
    CA
    Dave

    I dont know your situation, but this is not good for everyone. If I buy a 430, I might keep it 2.5 years, which is what I averaged on my 355 and 360.

    Why not LEASE the car? Here are the details: In california, 8.25% sales tax, assume price of $250K, if i turn the car in at 70% residual in 2.5 years, i will save $14,400 in sales tax. I will pay 7% for the lease so that will cost me $43,750. But I can easily get 5.5% on my money risk free with immediate liquidity so that is $27,500 back to me. Net result: out of pocket $1850 by leasing -- and that assumes i invest my money with virtually no risk. There may be some tax benefits to leasing as well, some people would value these tax benefits easily at $20,000 or more making a lease a huge positive. Your CPA can give more details if you qualify to write off the monthly payments.

    For my house, the first one million dollar on mortgage interest is tax deductible. My adjustable mortgage is a tad under 5% now. So I pay on a million about $50k a year in interest. But on that million, i make 5.5% easy. So I am net up $5k because i invest the mill and make $55k. But the tax benefit to me is another $20k. So if i paid cash for my house, i would lose out on $25k / year. And this assumes I am ultra-conservative and cant find anything else to do with the million and only make the current rate of 5.5%.

    I could write a check for the mortgage, but why would I? I think the sense of security by paying cash for your items is good, but you lose the ability to leverage and you may lose out on other opportunities. I keep my money liquid and ready to bounce on another opportunity. If I pay the mortgage down, I not only lose on the opportunity but I lose on greater wealth in the future (at a tune of $25k/yr! After 5-10 years that would add up, don't you agree?)

    So while I think your advice is sound in suggesting this person not payment shop for the maximum he can afford, I have to also say that having zero payments on your car and house is not necessarily the BEST thing to do.

    I have paid some big sums for cars before (one purchase was very, very large, much more than any current production Ferrari) and when I traded the car in 18 months later I looked like an idiot with all the sales tax I paid for 18 months ownership. I learned my lesson on paying cash.

    Maybe things are better in CO. But here we still pay property tax, DMV, registration, etc, etc. So even if you pay everything off and are debt free, you still get a damn bill. Especially that damn property tax bill.
     
  17. 410SA

    410SA F1 Veteran

    Nov 2, 2003
    8,511
    West Coast
    Full Name:
    A
    If you can't afford to buy a Ferrari for cash don't buy it.
    If you have the cash however, then leasing it is a decent idea as you can invest the cash and get a yield approximately similar to the cost of your lease expenses. You get to write off the lease expense against current income, especially in a corporate entity and you get to use the car virtually for free. At the end of the lease, if the numbers were done right the car will be worth the residual value remaining on the lease. In some cases you could get lucky and have more value in the car than its residual value, in which case you will money back on the deal.
    If you don't have the cash don't do it. It's a really bad idea to be in debt with an asset that loses it collateral value faster than you would imagine, especially in a "must sell situation"
     
  18. SoftwareDrone

    SoftwareDrone F1 Veteran
    Sponsor Owner

    Jan 19, 2004
    7,858
    San Jose, California
    Full Name:
    Mike
    Talk to the folks at Woodside credit (www.woodsidecredit.com).
    All the dealers who boast 12 year financing? They simply use Woodside. In fact, when I bought my 360, I helped set up Woodside with Ferrari of San Francisco. I put $90,000 cash down and financed the other 50K for 10 years ($606/month payments). A longer loan means more money towards principle. I'll have it easily paid off by next December.
    Hope this helps.
     
  19. hardtop

    hardtop F1 World Champ

    Jan 31, 2002
    11,294
    Colorado
    Full Name:
    Dave
    Or the market could tank, the home is worth 700K and you have to bring 100K to the table to unload it. Meanwhile, interestd rates have killed the 430 market and now you are upside down in a long term loan. Great planning.

    Dave
     
  20. DEAN325i

    DEAN325i Karting

    Dec 4, 2005
    69
    Orange County
    Full Name:
    Dean
    thanks..btw..do they require a large amount of down like that?
     
  21. Dcup

    Dcup F1 Veteran

    Jan 3, 2005
    8,645
    Between 2 Implants
    Full Name:
    Claude Balls
    on my car at 117 K, i put 40 k down and payment is around 1700 per month for 5 yrs.
     
  22. DEAN325i

    DEAN325i Karting

    Dec 4, 2005
    69
    Orange County
    Full Name:
    Dean
    thanks
     
  23. SoftwareDrone

    SoftwareDrone F1 Veteran
    Sponsor Owner

    Jan 19, 2004
    7,858
    San Jose, California
    Full Name:
    Mike
    I believe that woodside requires 10% down or something like that. It's just that I didn't want the joy of Ferrari ownership to be squandered by an oppresive payment. My only headache now is deciding which aftermarket exhaust to buy.
    :)
     
  24. JeffB

    JeffB Formula 3

    Jan 16, 2004
    1,132
    Northville, Michigan
    Full Name:
    Jeff B
    Very informative thread. Good points made on all sides. The main thing I agree with is to spend within your means though. There is nothing like owning that dream car you've wanted for so long, but it's not worth stretching yourself too thin to obtain. Financial security is far more important.

    Todd, what's up bud? Talked to you a month or so ago via e-mail about poker. Want to play a HU match on Stars? :D
     
  25. 1Turbo

    1Turbo Formula Junior

    Jan 26, 2005
    675
    LA$ VEGA$
    Full Name:
    Jimmy K
    100% Correct. Finance Real Estate, not Autos. The Ferrari of your Dreams will be there, when the time is right.
     

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