Current Financing Rates and Length of Term for 150k+ Loan Amount

Hi Guys,

Purpose of Thread
I chose to post a new thread as other threads were very old or were derailed. Just wondering what rates other people have gotten recently. Again, I have already chosen to finance, I am not asking whether to finance or pay cash. For those who have financed, I am just curious to know your interest rate and term--and if possible, the age of your financial credit history. Thank you very much.

Background
My wife is in her late twenties, I've only built her financial credit history for three-four years, and I have her obtain the loans for all of our vehicles--I made sure she has her own independent cash flow/net worth close-ended loop separate from me. I have to keep my balance sheet clean for the conservative mid-west life insurance company lenders.

Terms
She qualified for $180k @ 2.99% over a 60 month term at our local credit union. It was 1.99% but 1% was added because this was an exotic car. I was ok with it until I did a quick search here. I am thinking maybe it's just the loan amount combined with her short financial credit history. A week ago she also qualified for her Model X at 1.49% over 72 months.

I went to Penfed since it's been mentioned so much but it's showing 3.49% for a 60 month term for me: https://www.penfed.org/used-auto-loan/

I also went to Lightstream since it was the second most mentioned and it's showing 2.59-3.84% but has a cap of $100k: https://www.lightstream.com/used-car-loans?fact=4634&cid=PS%7CAuto-Used%7C%7C%7CLS%7CGOOG%7C&s_kwcid=AL!4229!3!175102006048!e!!g!!lightstream&ef_id=WRgOIAAAAGk6hExy:20170616003709:s#rates

http://www.ferrarichat.com/forum/145095362-post6.html

http://www.ferrarichat.com/forum/145096014-post12.html

http://www.ferrarichat.com/forum/139445524-post1.html

http://www.ferrarichat.com/forum/144770088-post2.html

http://www.ferrarichat.com/forum/144771344-post8.html

http://www.ferrarichat.com/forum/144775397-post16.html

http://www.ferrarichat.com/forum/144774452-post10.html

 

Because my liquid cash was tied up on a deal, and I saw the GT2 market taking off, I HAD to get a loan while the prices were reasonable.
I used Woodside.
IIRC their rate was like 4%.
Beware ; its 15 year compounded so you are paying interest up front.
I am a small business owner and usually pay cash for everything. As such my credit rating/repayment history is crap. I'm about to send them their pay-off after their 2 year mandatory commitment after my $$ is more liquid.

If you are buying a slam dunk APPRECIATING Ferrari all this makes sense.
If you are buying a newer used depreciating Ferrari it makes no sense at all.

What are you buying ?

It makes all the difference.

 

This should be good..

 

I did a little more research: reading in between the lines it seems a lot of people have balloon payments or very long terms with high interest rates.

I'm moving forward with the loan as soon as I decide on the vehicle, so just as a data point for others who stumble across this thread: my wife's deal is just a straight 2.99% over 60 months for $180k loan amount. Cost of the loan (the total loan interest) is $14,013.87 over the 5 year term.

 

So... you're buying a car for yourself but using your wife as the source of funds? Does she know about the impending debt?

 

Yes my wife is the guarantor. I guess technically you can classify her as the source of funds. All pass through entities were formed by me with income producing assets transferred into them by me. Then I made her managing member of the entities while reducing my own percentage interest for this specific purpose so I can keep my own balance sheet separate and clean. But sure, technically, you are correct.

I know I am new, but I am losing a bit of patience here. How can she possibly not know about the impending debt? She is my wife. One would assume a conversation had taken place. That notwithstanding, there is the credit application she has to fill out and sign. Then a rep probably called her to confirm a few things I'm sure before the underwriter granted the approval. And then a bunch of paperwork at the dealer. In fact, she just went through the dealership process today at Tesla.
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It sounds like you pretty much answered your own question. So what are you buying, that's all I care about. Show us the car.

And yep, there'll be plenty more folks along shortly to tell you that you shouldn't finance a depreciating asset. Plenty more.

 

You're getting this because it sounds... Unorthodox fishy. That's why. I've never heard "my wife is financing my Ferrari". Ever. I've heard "my wife HATES my Ferrari" many many times. Similarly I expect to hear "my loan on the car", etc etc. It makes me wonder what financial wizardry is going on behind the scenes.. But otoh, I don't want to know.

When I financed mine, I did a 5 year loan at 3% with Penfed and paid it off in 3 years by doubling the payments.

 

is it really worth the headache over 150 bucks a month? 2.9% is a great rate.

 

I think your rate is as good as you're going to get today given the type of car you're buying.

As for the wife financing comments, let me just say that as a former accountant, I have seen and heard it all. You would probably be surprised to discover just how many wives and minor children have huge debt and ruined credit by their spouse/father, that never surfaces until a divorce. Not saying that is what's going on here at all. Just saying it happens all the time. I have personally met three year olds with bad credit and debt collectors after them.

 

The rate you are being quoted, in my opinion, sounds very fair and competitive. Is this based on financing 100% of the purchase price?
2.99 is better than most home equity loans now, since the prime rate has risen.
If financing is your desire, not sure you can do much better.
What are you thinking of buying?

 

Thank you all for your comments and feedback. I understand the perspectives; fair enough. To quickly address the issue: I am small-time real estate developer for retail commercial properties; to me my credit my golden goose, not worth a pull over something like a car and my lenders (mid-west life insurance companies) don't like seeing these type of cars on my balance sheet.

I am considering a 2010-2015 458 or a 991.2 GT3 if I get allocation. Someone kindly posted manheim auction prices as recently as ~February 2017 so I am basing my offers of those prices + 5-10%. Most dealers have only been willing to take $5k off MSRP so far.
http://www.ferrarichat.com/forum/145182005-post26.html

The financing was based off a 2011 458 for ~190k. They offered my wife 180k.

Regardless, I hope something happens soon as I'd like something new.

 

i just posted 458 manheim auctions in another thread if i remember correctly. manheim results seem to be very stable.

 

Yes! You did! Thank you extremely helpful

http://www.ferrarichat.com/forum/145422400-post147.html

 

as automobile financing defaults have started to skyrocket in the past year, as well as interest rate trends in general, most rates are floating upwards

while I have not done detailed research, 2.99% for $180K at 60 months sounds more than reasonable, particularly for a used exotic.

As for how you manage your finances, that's your business. I'd imagine that you have a pretty bulletproof estate plan and structure in place; I've been helping a friend's family out after he suddenly passed away and his "financial structure" sounded a lot like yours from a distance....and his estate planning was H&R Block quality.

The amount of heartache and problems he left is amazing, including way too much crap in wife's name (solo) as with his passing, his business essentially stopped cold. We were able to arrange "constructive repossession" of his Ferrari and Porsche, but the creditors made it very painful as the loans were seriously upside down

Good luck

 

second the thought that 2.99% is great.

Cutting it by 1% saves how much over the full term, ~$4500? Changes the payment by $76 per month (on a $3200 payment)

I get it, its $5 grand, but still its very little in the scheme of owning these cars...

and, getting 1.99% for a straight loan on an automobile at $200k? Hard (if not impossible) to get that much at that rate today.

 

I dont see anything fishy about his post.

 

IMHO 3% and under isn't bad. If I were to finance again I'd probably go that route.

I don't get why it's a 458 and not an older model with less principle loaned for a similar ownership experience. but best of luck.

 

PenFed website says used car loans up to $100,000 do they do more?

 

No that's their limit.

 

I've heard they do more if you're a previous customer but I can't confirm.

 

I've used them for at least 4 of my cars and they wouldn't budge from the $100k limit. They also have a max limit of $150k total. Meaning if you have another car loan with them, your loans cannot exceed $150k total.

 

There you have it haha. Good to know, thanks

 

The current rate of USURY is somewhere around 3% for this amount. Now that begs the question. Why would you willingly want to enslave yourself to drive a car around and pretend to be rich?

 

Usury at 3%? I don't think so. In the US each state has its own statute limiting interest rates, and I don't pretend to know all of them off the top of my head, but they are way, way, way higher than 3%.

As one point of reference, Canada has a nationally mandated usury rate, and it is 60%, not 3%.