Would prefer to finance an exotic car purchase, but who will finance a 15 yr old car?

I'd like to buy another car (perhaps a 360) in the $75k range. While I technically could pay cash, I don't like have money tied up in a vehicle since I can earn a greater return than the cost of the financing. However, since I'm looking at 99-01 360's (amongst other cars.. 96-99 vipers, gt3 porsches, etc) it seems that many lenders rule out the loan simply due to the age.

I'd like to finance as much of the purchase as possible, but can put down as much money as necessary to get the financing. Does anyone have any suggestions?

 

Putnam Leasing

I think there are others also but this is one I have heard of.

 

Lightstream Financial
JJ Best
Woodside

Lightstream has the best rates by far.

 

Proof69 is this you again??
(banned a couple of days ago, and Trademarked signed up a couple of days ago with no profile and 2 posts)...check IP

If not, this has troll thread written all over it....
here we go again

 

If you can make more $ (% wise thourgh investments etc) on the amount than it cost you to borrow the money then it makes sense.

Local credit unions will finance older cars no problem.

 

If you have a home equity line of credit use that...lower rates, deductible interest expense, and typically interest-only payments. The HELOC is a great financial tool as long as it isn't abused.

 

I'd interview the lenders first personally before you borrow from them. You don't want to go too quickly. I'd ask them a million questions before I commit to anything... if I ever do. (hehehe)

 

If you can "beat the loan" then why not cut out the middle man and borrow a bunch of money and invest it? Then buy the car with the profit? Note I think this is a ridiculous idea, but maybe you can bear that sort of risk.

Fwiw I think financing an exotic is a terrible idea, doubly so for an old one. I'd save my pennies until I had enough money to invest and buy the car.

 

I think financing makes plenty of sense on a fully depreciated 360. Paying interest is never fun but we all do it here or there. Going underwater on a loan is far worse. If you're avoiding a major gap, I don't see the problem with it, and have financed all five of the exotics I've owned, twice on extended terms with Woodside. I wouldn't do that again because I find these long term financiers to be *******s and I choose not to deal with them again. But for someone who needs that payment at $700 to be able to afford the maintenance, I celebrate owners like this living the dream and maintaining another fcar.

 

I used to have a strong feeling on this but over time I've learned we all have our personal situations.

My bottom line philosophy is so long as you are acting within your means: life is short so eat dessert first. You never know what tomorrow will bring (so its good to have a cushion but at the same time you have to life your life).

 

Sorry to disappoint but I'm not that guy..

Thanks I'll check with some of the local guys around here, at least high mileage isn't going to be a problem since I haven't seen a car on this forum with more than 35k lol.

Getting a bank loan (even on my primary home) is difficult for me due to the number of rental properties I own. I'm lucky to have a regular old bank loan on my primary residence, getting that was a miracle in itself.

I have the cash to buy the car, but if I can avoid tying up cash and someone lends it to me at .. say.. 2.5%.. and I earn 15-20% on my investments.... well... it makes sense to take the loan. 2.5% is like free money to me.

What do the long term financiers do that's bad?

 

You will pay a higher interest rate with them

 

I am surprised by the number of people who make 20% on their investments who ask the unsubscribed forum financial advice.

 

+1. Kind like the I make $1 mil. a year.. can I afford a Ferrari?

 

Pen Fed or Lightstream.
I even used Pen Fed for a loan on a paid off car, sold them the title for a loan
as I needed the cash for a investment. At around 2.5%, most can use the
cash and make a lot more than 2.5%.....

 

+1 ... you said it Statler... and I'll throw this out there to boot --- Troll Thread

 

A less professional, loan shark attitude. Even getting a good rate from Woodside, I still didn't appreciate their attitudes. Financing should be seen and not heard. I've worked with FNA three times now and they're outstanding. I tried Woodside on my 612 because it was fully depreciated and wouldn't go underwater, and it didn't, but I would rather deal with Ferrari.

I think with Penfed though, aren't you limited to $70k total? Could work for the OP in this instance, but pretty limited field of exotic vehicles. I'm a member of all these things, Penfed, NFCU, TransFCU, etc. Some of them don't do exotics at all. Can't remember which though. Pretty sure NFCU doesn't.

 

100k with Pen Fed now.....older cars too, and they just use NADA value.
I got 1.24% for 3 years on my DD back in January, I could not see tying up $40K cash
to pay for it fully when I could use that money for other things/investments.

 

Used PenFed on mine. Paid off loan 1 year and 1 month early. LOVED working with them.

 

Asking for a lender who will finance older vehicles is hardly financial advice. Even if it were, I bet a forum of ferrari owners would provide substantially better and unbiased financial advice than any commissioned based financial planner/thief.

 

There is a guy on Rennlist asking similar question and he also claims 20% on his investments.
Reading that, another guy offered his wife to blow him in exchange for the "secret" how to make that 20%.

 

+1 LMAO

 

Can you broker that arrangement for me? lol

It's no secret, but it's also not easy. I'm feeling generous, so I'll share.

I buy really crappy looking houses in low to middle income neighborhoods (let's say C+ kind of neighborhoods), have a crew fix them up, and rent them out. I've bought tons and tons of them over the years, and I still have lots of them now. I spend a LOT of time hunting for the right deal.. many hours reviewing deals that don't work, bidding at auctions, negotiating with sellers, and only after many hours of pursuit of multiple deals does one actually close, but when that one comes through I'm celebrating. I love numbers, and it's just a numbers game. If a property is a good deal but doesn't meet my formulas, then I sell it to someone else for a $5k+ assignment fee.

An average deal would look something like this:
$30,000 purchase
$10,000 rehab
---------------------
$40,0000 all in

$800 rent x 12 months = $9600 gross rent, less taxes $800, less insurance $350, less 5% vacancy $480, less 10% repair allowance $960 = $7010 net operating income. (every year will vary, but that will be the average over time.)

$7010/$40,000 = 17.5% cap rate (return on investment)

I then call up one of my private lenders and say "Hey, I have a free and clear $800 a month rental house worth $60k-$80k, give me $40k against it as collateral and I'll give you 8% interest only payments for the next 5-10 years, and hey, lend it to me out of your 401k or IRA though a self-directed plan so you don't have to pay taxes on it." $40k arrives at closing attorney's office a few days later, and lender gets a security instrument against the property. (of course I'm only making $4k/yr on the house instead of $7k now)

Now my return is infinite, and I move on to the next house. How many blow jobs is THAT? LOL.

You're thinking "but I don't have $40k houses in my market!". Well guess what, everyone says that in my market too, but when you put the effort in you can produce the deals that meet the same ratios in almost any market. Ok, if you live in NYC or LA you probably would have to go to some scary ass neighborhoods, but almost everyone else it exists

 

I financed my 360. I had the money to pay cash. (that's of my rules) I knew I had two big jobs that were going to require me to finance the job for the customer for about 3 months. I kept the Ferrari money as buffer. Turns out I'm not going to need it. (didn't think I would but just in case). If I did need it, it would have returned about 35%. I get many jobs in my area because I can finance jobs for large condo associations that other companies can't do. I tend to hold on to all the cash I can for that reason alone. It's not always stupid to take out a loan. I will pay car off in February when those jobs have cleared. The few hundred dollars I paid interest was well worth the peace of mind.

 

NYC and LA, just tack another zero on your numbers and it still works!