Resolved to buy a 355 - Financing Advice?

Well, this is my 3rd Ferrari, and I've never had one that depreciated yet. So far, so good.

 

SA-WEEEET! I'm on my first....and obviously still learning the ropes.

 

Good luck with the car maing! The 355 is amazing!!!

 

I've had 3 Mercedes'ses's over the years... currently driving an 03 E500. I will NEVER EVER drive one that's not under a full warranty.

Purchased the E500 (certified preowned from the dealer) which means 1 more year of warranty on top of the factory warranty. Then I purchased 2 more years... so I'm good to 100k miles or end of 2009. The warranty is transferable as well. Those cars can have really expensive gremlins hiding in them!!!

 

Back to the topic, I would go to the local credit union for a loan, and call Allstate for the insurance. My insurance on an 89 348 is around $800 per year. No limits or restrictions. 100/300 coverage, etc... Sounds like the Mercedes has softened you up on repair expectations! Good luck in the search.
BT

 

As the resident banker, I feel qualified to comment on equity lines. Bottom line is I would look to a credit union for a car loan over a home equity line/loan unless your rate of interest is the same. Even then, HELOCs/HELs are generally variable with fixed rate loan options (FRLOs), but the rate is going to be around prime, currently at 8.25%. Our best credit customers are getting about 6.74% variable for 6 months and 7.9% thereafter on variable HELOCs. FRLOs are slightly higher. In an environment where the Fed rate might decrease, a FRLO is premature.

IMO, it is not worth the interest rate difference in deciding between a HELOC on your home or an auto loan from a FCU (credit union) even if u could deduct the interest on ur home. Check with ur accoutant because there are limits as to what u can deduct on HELOCs. For example, interest on the 1st $100K over your original purchase loan amount can be deducted, but nothing more, so if u refinanced to take cash out before, u might be stuck. There are exceptions.

I know it is my job to sell HELOC loans, but ppl are getting in trouble with them. Never use one for long term debt and always commit to paying them off in as short a time as financially possible. We adore ppl who use their credit lines for consumer goods or to support a lifestyle. However, when the market and/or changes we might be the ones stuck with excess debt.

An alternative is to borrow from ur 401K (if ur plan allows this) and pay urself back with interest. What do u care what rate u pay, it's going to urself?! Of course, there's lost opportunity cost in that money. If u really want to get in trouble, some IRAs allow u to take the money out for 60 days with no penalty if u pay it back. These make good bridge loans, but don't get caught beyond the deadline or it's really expensive.

PM me if u want to know more.

 

I'd suggest a home equity loan, which is how I partially financed my 1999 355, with the balance in cash. Good interest rate and it may also be tax deductible. Likewise, I have used Liberty Mutual to insure. It's costing $736 annually with a $500 deductible; however, I have two other cars (a Lexus RX330 and a Mercedes SL500) plus my home insured with them, so that may have made its insurability a bit easier. Good luck!

 

i first tried allstate and they were mega-expensive. i went with state farm for full coverage, about 835/yr. i'm 30 years old.

i partially financed my recent 328 purchase, i went with a local credit union and recommend that route if you will finance.

john

 

Good point I forgot to mention. Getting a credit line won't hurt your score, but using it will. What hurts is using a large portion of the total line. Taking 30K on a 100K line is not so bad, but taking 30 of 30 is a negative. I have seen 50 to 100 point hits for this. The credit bureaus just don't fairly rate equity lines and need to change their algorithms. To them it's consumer debt even if it is real estate secured.

 

I've been looking for a 355 for a couple of months now and I've come up with the conclusion that the folks who don't own these cars outright, usually doesn't set aside enough $$ to maintain the car and then decides to sell it. They don't want to spend the $8K-$10k on the 30k service, probably becuase they are making payments on the car. I may not be correct on my observation, but I don't think I'm all that wrong either. I know this a financing adivce thread (please don't beat me up for it), but these cars should not be financed. There are too many things that could go wrong with these cars and could cost an owner lots of dinero($).

My two cents.

 

Every situation is unique, I financed my 1999355f1 with Capital One, putting about 1/3 down and financing the balance,could have paid cash but did not want to disturb the stocks and bonds which are earning more than the interest on the car loan. I was isurred at that time with Leland West on the 308 I still have, but they would not insure the 355 because my wife and I drive "old cars" - i.e. over ten years old, did not matter that the house is paid for the dog died and the kids are married and gone, Hagerty had no problem with us and have been with them two years. Best of luck on your car purchase, you will find the various threads on Ferrari Chat most helpful

 

cost of capital exists whether you finance, lease or purchase outright. that said, ferraris and sound financial advice don't belong in the same sentence. that is why they make honda accords.

 

OK I call B.S. on that one. It is arrogant of you to automatically assume that someone financing a Ferrari somehow can't afford the car or its upkeep, and then to pronounce that "these cars should not be financed". If you want to plunk down $50 to $100K of your cash for a Ferrari, be my guest. But your self-righteousness is pathetic.

 

I am with you guys !! First there is the complaint of high maintence costs then financing issues....If one wants the f-car bad enough one will find a way to scrape ones $ together and that goes for the maintenence too!! Which when one thinks about it...is a great bargain for what you get in a 348 or a 355! The slower depreciation of these cars makes up for the ownership expenses invloved.

Everyone here has different means to get an f-car. As long as one uses legal means, I am always happy when someone gets an f-car that "they always wanted" No matter the financial method.

 

Credit Unions, Putnam, and Premier are my votes.

 

$3 mil on a house?? Congratulations on that! But if I could get that, I would rather buy a house @ about $2.7 mil and get myself an F430 spider but that is just me !

 

Good lord. $3000 for mounts? Stamped sheet metal and some rubber?

That's the most insanely priced part I've ever heard of!

 

I worked with Premier to buy my 355. They were very quick to turn everything around and State Farm has my insurance. The insurance on my 355 is a lot cheaper than my CLK AMG. About 1200 a year. I haven't seen many people talk about taxes. I live in Atlanta, where we have really high taxes on cars. So I went through Premier to keep from having to pay taxes on cars that I change around every couple of years. Putnam was not responsive and did not have the full amortization schedule that Premier has. This lets you know at any given month what you would have to pay to get out of the lease. This is very important. Putnam just has a fuzzy number they make up when you are ready to get out of the lease.
So my recommendation would be to put very little down, therefore pay the least amount of taxes. Work with Premier and get a new one every year. Oh and no, I do not work for Premier. I worked with Doug, in case you want someone to talk to at Premier.

 

Could you tell us what the purchase price was, what the payment is and what the residual will be assuming you keep the car for the term of the lease?

 

I am flying this morning to florida to purchase my first F-car and I am using my credit union to finance it. I got a 6% loan for 72 months. And their savings account is slightly over 5%. So I figure that the money I earn from interest will help pay for the car.

 

couldn't have said this better....you never know when that rainy day will come

 

i just moved from Atlanta back to Texas and was amazed at the registration fees that we had to pay while there. How did you figure out a way around the ad valorem tax - I'm gone now but I knew that there must be some way to get around it?