Looking to purchase with 10% down and monthly payments to follow. Anyone intested?

Your mailbox is gonna fill up quick!

 

This may be a bit basic, but... What are you looking to purchase?

 

Call the AUTO TOY STORE

 

Not to be negative, but I think your odds of getting a seller to privately finance the car are slim to none. You would likely have more success trying to arrange your own financing. But you never know...

 

You can also try exquisite motorworks 954-958-0000, they do that kinda work.

 

NEVER finance a toy. Sounds like you just can't afford an exotic car! Are you going to finance the maintenance too? If you can't pay cash for a Ferrari, you can't afford it.

 

Financing 90% for these cars is just past insane. People call me a whack-job wanting to finance 25%.

 

Yea that would be nuts. You would end up paying well over 200% f the cars worth in interest. And still have to pay for maintenance!!!

Maybe you should look at this thread....


http://www.ferrarichat.com/forum/showthread.php?p=136508901#post136508901

 

Thank you, Mr. Wisdom. It's not your business to say how someone should buy their cars.

 

He sure makes it his business though, doesn't he!

 

That's not the point of contention, but that people are so anti-financing on FChat, to the point of talking down those who consider it.

Didn't you finance your house? Do you know how much interest you will be paying on the life of the loan? Sure, an Fcar is not a house, but financing is a viable option.

 

Try this one on for size. Several years ago I bought a 1959 250Gt from the owner. He took 20% in cash, and the rest paid over two years at at least $500.00 a month, then a balloon payment, and with no interest on the balance. I couldn't pay it off in the two years so because of good past payments he went for another two years at no interest. It never hurts to ask.

 

Try www.prosper.com

Private financing, it's kinda like ebay for money.

 

OK heres somthing to consider

If you take a loan out for $200,000 (roughly 90% of $220,000 Msrp of F430) You would be paying $3,866.56 a month at 6% (a little high) interest over a 5 year loan and a total of $31,993.62 in interest, plus maintenance. These are just rough estimates but its somthing to consider and if you can afford it and are willing to go that route I say go for it however 31 grand is quite a bullet to bite.

Good luck, and if you are really up for it and willing dont let these guys get you down.

 

The OP didn't ask for your opinion on the merits of financing versus purchasing outright. He simply asked if anyone was interested in offering third party private lending.

I hope you aren't this self-righteous in person. Your response to the OP was rude and ridiculous.

 

The OP has 2 posts, so it's fair to assume he's new to whole exotic car game.

A lot of my friends have no clue what it costs to maintain even a mechanically excellent Ferrari. It's also fair to assume that a $5000 service or repair bill is going to be a big deal to someone carrying mortgage-sized payments on a rapidly depreciating car.

All fair warning, IMO.

As to why he wants someone to carry his loan ... maybe his credit isn't where it should be, or he wants to avoid credit reporting. A few yellow flags here...

 

i wouldnt go to the auto toy store if i were you

that place is full of sheisty bastads

 

Stay Away! As far away as you can! Just do a search on Auto Toy Store (ATS of New Jersey). It will save you a lot of grief, time and money!

 

I agree that this post is not about "financing vs. paying cash." It's about whether or not someone is willing to privately finance a Ferrari with 10% down.

To the poster: I am assuming you are seeking private financing since institutional lending is not a viable option (for whatever reason).

In my opinion you will be (very) hard pressed to find someone willing to take that kind of risk. A Ferrari is not a Ford. 10% is very little equity in such an expensive car. If you defaulted on your payments the private lender would receive the car back. Without knowing you personally there would be no way for the lender to know how you would maintain or treat the car while it was in your possession (not to mention the mileage issue).

I think your proposal would gain more attention if you were willing to put down 30% or 40% and finance the balance. Also, it would need to be at a premium interest rate - certainly not 6% but more like 10%+ - for anyone to give it consideration. This way the lender is both protected (equity-wise) and also has an incentive to take the risk to begin with.

Whatever happens ... best of luck.

 

Jeffrey is right on the money!

The issue at hand is "seller financing" and if you'll notice this method doesn't really exist anymore... even in real estate where they know the collateral isn't going to disappear.

Good luck.

 

I financed part of my Ferrari purchase, to make sure I'd have a cash reserve for service and emergencies. When nothing ugly popped up, I paid it off early. (And the bank loan also helped keep a credit rating up to date -- which can be significant if you don't have a mortgage, and use debit cards instead of credit cards. A private loan won't do that.)

BUT: I financed less than half the price of a car with an *increasing* market value.

With 90% financing on a newer car, depreciation will overtake you in a hurry.

10% down is Honda purchase territory. A huge number of Ferraris become garage queens when people strap their finances to buy them, and then discover that you don't get four years of free maintenance. And they get surprised by the insurance rates, too.

So the cars get parked, because the owner can't afford to maintain them.

And when you're behind the depreciation curve, you can't even sell off -- the retail on the car is less than the outstanding loan.

Or worse, people drive the cars without maintenance until something really expensive breaks -- then the value of the car implodes. And they still have that huge loan.

Thinking that 10% down means you can "afford" a Ferrari can be a quick way to dig yourself into a hole.

Be sure you know what you're getting yourself into, before going to "legbreaker larry" for easy financing.

 

Most of the comments have been with respect to the buyer and whether he should finance at 10% down, but I guess I don't understand why anyone would want to do seller financing as a seller of an exotic car to an unknown buyer in an unknown state. Of course it's done in real estate, but that's because RE is more illiquid and can't disappear.

Let's look at the disadvantages to the seller:

- Buyer pays 10% down and then ships the car to South America or otherwise disappears. 90% loss to the seller.

- Buyer pays 10% down and wrecks the car and walks away, salvage value of 30%. 60% loss to the seller.

- Buyer pays 10% down and doesn't maintain the car (belt, engine rebuild, whatever), lets the car deteriorate so that maintenance costs of $50-100K are required and walks away. 30-50% loss to the seller.

- In either of the last two situations, if the buyer disappears with the car, back to a 90% loss.

The only situation that works out OK is if the buyer makes payments faithfully, keeps up full insurance on the car, and maintains the car regardless of what happens to it. What are the chances of that for a 10% down buyer asking for seller financing?

Even if the seller has a car marked up 50% over market and hasn't been able to move it for 2 years - with 10% down, he only gets 15% of the cars actual value, not 150%. Big deal, considering what he has to lose.

Auto financing companies have much bigger portfolios to average out the risk, they dig deeper into the buyer background and they have experience repossessing cars. It just doesn't make any sense for a private seller to do this kind of deal.