Resolved to buy a 355 - Financing Advice?

Mark the day, as I've resolved to finally buy an F-car. I've spent the last few weeks looking at Maserati Cambriocorsa Spyders, but I've had hard luck finding the one I want. I longed for a 355, but the maintenance costs and associated pains seemed like they would test my patience. But, recently I had a Mercedes S500 and now I know what $10,000 in annual maintenance feels like for a late model car. So, perhaps I'm ready.

I decided that the best plan probably involves financing the car instead of paying cash, as was my previous plan for the Maser. That way, I have a maintenance reserves account and I'll ALSO buy a Toyota Highlander as backup/utility wheels.

My question is: Who should I contact about financing a car like this? Anybody have great experience with any one institution? Any potential hurdles I can expect? Also, as far as insurance goes, this will be a 3rd car, so should I call someone other than Allstate? All advice is appreciated.

 

The guy I bought my 355 from had it financed through premier on the east coast. Though, I think they will do any state.

http://www.premierfinancialservices.com/

 

I was worried about the maint. too and insurance...i posted a topic about that..and everyone gave in their 2cents and helped me out a lot...Insurance isnt bad at ALL and as long as we get a 355 that has been serviced and well maintained etc and a full PPI done,should be fine..So im sure you will get some help soon..as far as financing im not sure about that..how much do you want to put down on one?

 

Well, that get's into some of the upcoming questions. I was going to pay cash for the Maser, so I'm flexible on how much I can put down. Let's guess somewhere between 20% and 50%.

I know that when I bought my last car through Capital One, there are restrictions on the financing that the car cannot be more than 5 years old. So, many people could finance these cars when new, but now they don't qualify under those rules. I know Hagerty finances, but I'd like to do some shopping and hear from anyone else who has a loan.

Can you post a link to your insurance discussion - I'm new here, so I'm learning the ropes.

Additional info... I plan to use the car maybe 4k-5k miles a year in AZ. I trade cars all the time, so I can envision looking to upgrade next year. Also, the F1-trans intrigues me, so I'd like to know where I can find the discussion on that.

Thanks!

 

Check your local credit union. They offer the best rates and if a car is over 50k, they dont care how old it is and they will let you go a longer term if u feel like it.

 

I'm a banker and my experience is that consumer loans are priced best at credit unions. These days, about any schmoe can belong to one, so shop around. Ask some friends about theirs. Heck, you'll have a harder time finding insurance for your baby than a great auto loan.

Insurance - AAA won't cover u, Haggerty is finicky (they would not take me because I didn't have a more recent model of any car), Liberty Mutual took me (but u have to be a customer already), GEICO covered a client of mine, State Farm won't unless they changed their policy and that's all I checked. You will be restricted to low mileage 7500 per year at the most, 2500 generally limited to club events if u take the least costly, and your deductible will be $1000 so plan accordingly. Does anyone have lower? You can go with stated value most of the time since insurers don't know what the cars are worth. Be realistic because the premium is dependent. Figure about $1100 per year depending where u live (that's for a nice Los Angeles neighborhood) Oh, and it's a good idea to get a $1 million (or greater) liability policy on top of it in case u get sued because u have a Ferrari.

 

We interrupt this thread to bring you this hijack:

Are you bloody serious, $10K in maintenance on an S500?

 

Very clever response BTW.

If it was a 2000, that's entirely possible! They were maintenance animals for that 1st year's model.

I can't believe after the S500 1st year fiasco that anyone would now buy the 1st year of the S550 especially with the BMW like iDrive system I so very much dislike on my 530i!

For financing you should be talking with a local funder.

If not you could try Chase Auto Finance. They are in Phoenix. They are very good but may only finance through dealers.

Premier was mentioned, but that's a lease company.

If you Google "Auto Financing" you'll find tons of them.

Your FICO best be good, because in this market funders are being more cautious.

 

I financed a 348 with zero down at a local credit union @ 6 percent interest, 60 months. The local banks were anywhere from 2 to 3 points higher. Doesn't sound like much, but that's anywhere from 30 to 50% higher interest. They would have gone 72 months had I preferred.

If your idea is to preserve your cash pile, you might as well finance every penny.

 

I'm not concerned about whether a bank will finance me, FICOs are high and I can show some assets. I just don't want to call 5 banks only to be told to go elsewhere each time. I figure I'll start with people who know what they're doing. Its a rare art these days.

Yes, the S500 was $10,000 a year. My stockbroker has one, too - same deal. My equity investor has one - yup, same stories. And, last week I was in the parking garage of San Diego's Harbour Towers and saw one sitting on its wheels, so I'd venture they're all the same, not just the MY2000's. I really envied an S-class owner until I had one; now I just think "that poor SOB".

In 14 months I had 3 airmatic struts go at $1,500 a piece. Then, the power steering went out ($900). Next, the transmission mount broke ($2,000). Later, it needed new motor-mounts ($1,000). Oil changes were $900; dealer-only or the car would annoy you by disabling some features. The car was an '02 with 30,000 miles. I had buddies lose their Navigation screen and instrument cluster - $2,200 to replace. GREAT CARS when they were running right, but mine was towed from my driveway about once per month. So, that's primed me for owning something Italian. A good stepping stone from my Lexus days I guess.

Is $80,000 for a sorted 355 realistic? I want valves done or newer model - no guesswork there. I'll have all sorts of PPI questions as I narrow the selections. GTS models seem rare - true? Basically, I want a driver, not garage jewelery. That said, I'm not the guy who takes his cars out for a weekend thrash.

 

Just FWIW, Capital One financed my 328 with no questions via their "Blank Check" program.

 

Three more thoughts while I'm at it.

First, do you think it matters whether the car is private party or from a dealership as far as financing would be concerned.

Two, the current fleet is insured with Progressive. Is it worth calling just to hear them laugh?

Last, Local Banks: My personal bank is sort of a private, real-estate only bank. Do I just stroll into the nearest Bank of America and ask for high LTV financing on a Ferrari as a non-client? In AZ, we don't really have local banks, just local branches.

 

If you have a home with good equity, look at a HELOC. Rates are great (if fixed) and the interest then becomes tax deductible.... Also makes your insurance cheaper as technically the car is not financed.

 

FWIW, the gentleman who bought my '96 Porsche did the same with Capital One - no problems with the age of the car.

 

I wouldnt buy any mercedes thats not under warranty now days. My brother had a MY00 S500 and had a battery explode in the trunk, nav go out, many window switch problems, but luckily he bought it new and it was under warranty. What a piece of crap quality wise.

 

How was this not included in the warrantee?

 

I was kind of wondering the same thing considering he said it was a 2002 and mercedes comes with a 4 year or 50k mile warranty.

 

Concerning insurance...when I checked into it about 2 months ago I got this from State Farm: '98 F355 Berlinetta, no drivers under 25yrs (I'm 45yrs), under 7500 miles/year, full coverage w/ $1000 deduct for comp & collision, very clean driving record (no wrecks or tickets in over 12 yrs)...quoted $397/6 months.

 

Ah, the S500 had an '01 in service date, so it was just out of warranty when I picked it up. They offered me a Starmark warranty for $4k, but I passed thinking that the repairs couldn't possibly total that amount in a year. I figured I'd have to replace the airmatics on the front. Well, I gambled and lost! BTW - the car was backed into (in the front) at a car-wash and spent 5 weeks in the shop with another $11,000 repair bill that I didn't count because insurance saved the day. Local dealer was not sypathetic to the fact that I had given them nearly $22,000 in business on one car; never a discount.

 

Dumb ass!!!!!

 

Whoa... I'd never pass up a Starmark warranty. My stupid E420 ate repair bills like nobody's business. Ferrari repair doesn't hold a candle to Mercedes.

 

My pops always said "Pay cash for your toys and you'll never be disappointed". I live by that rule, and life is grand!

 

Yeah, but your Pop's rule may not fit every circumstance. I much prefer to finance these kinds of things...it just doesn't make cents to me to tie up $50 to $100 grand in the garage when someone will shoulder that for a mere 6%. It's a bargain in my book.

To each his own.

 

Agreed, however I have trouble getting my head around the fact that people are willing to set themselves up to pay a 5,6,7,8% premium on a depreciating asset that is already in the near six figures and in some cases well into the six figures. Just my 2pennies.

 

Brian, you live in Calgary, so your situation is different! In America, we build our grand lives on horse-choking credit debt.

I would pay cash, but financing some amount allows me to afford a better car (I hope) and also have money sitting around for the day the $10,000 part goes south. That, and I'll fork some money over to Toyota so I come home with two toys on my birthday and at least I won't worry about one of them.

I'll call Capital One and Johnson Bank today and see what they have to say. Thanks for the advice. More questions to come...