Ferrari Financial Services - Balloon Financing

Exactly —-1700 a month is not likely.


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They are not. Call your dealer and you will see. The rate is 3.74 and 60% on a f8 spider. This is the current and correct info.

 

60% balloon on a car that won’t be worth 260k in 5 years? [emoji1751]


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You may want to actually call your dealer before you claim something is not correct. He is putting down 125k.

 

Already did. He is still financing 300+


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Set by FFS.

 

Exactly and you have a single lump sum balloon payment that is owed at the end is 258k.

 

Well, heck. Had I known I could have decreased my payment by $1,700 per month by simply putting another $35k down in order to bring my financing cost to $305k instead of $340k, I would have done it!

Kidding, of course. I asked. It would have been around $3.1k per month instead.

 

Well did you put 85k down? Bc apparently OP is putting 120k down


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That’s the number I was given too


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4.98% seems high. I may just go the traditional 72 or 84 month route with any bank that can get me rate in the low to mid 3% range.

 

I'm just comparing what I financed to what he intends on financing. I financed $340k and I pay $3,450. At $305k it would have been $3,150. I went through a few different scenarios with my dealer.

 

Do you mind if I ask what was your total build and how much you put down? Why did you choose balloon financing versus traditional financing perhaps longer term or same term with lower interest rate?

 

What’s your final payment?


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I'll have to check later. Paperwork is at home and don't remember the exact figure.

 

Any how your payment seems in line with what I was quoted


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Total build cost was $350k. I ended up putting put $10k down. I had originally intended on putting significantly more down, but for every $10k increase in my down payment, the monthly payment only decreased by $100 or so. Therefore, I ended up only putting $10k down, vice blowing my cash on my super-fun depreciating asset. I have good cash flow coming in, so the monthly payment isn't much of a problem.

As far as the Balloon reasons, I like the proportionally low payment, and also the idea of not having a $340k loan show up on my credit. I want to buy more real-estate, and because Ferrari Financial doesn't report anything to the credit bureaus, using them helps mitigate any issues with that.

It may not be the best decision for you, but it works for me.

 

This is very helpful. Thank you Scott!

 

PS:I don’t think their leases show on credit too


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They won’t allow such a balloon on a used car.

Also they have two balloon number depending on if the car currently has over 2,000 miles.


May the Horse be with you

 

Agreed with you!


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This

is exactly correct!

 

I’m not sure you entirely understand balloon financing. You are not paying interest on the entire amount. You are paying interest on the 59 payments and you have a lump sum payment due at the end. If you do a simple google search on balloon mortgages or balloon financing it will be clear. The entire purpose of balloon financing is to have substantially lower monthly payments. The risk is you have a large lump sum at the end. Hope this helps.


What is a balloon payment?
A balloon payment is an installment payment due at the end of a loan term. Such loans don’t amortize at the end of the term, but rather have a larger-than-usual payment required at the end. Borrowers with a balloon-payment loan make smaller monthly payments over the course of the loan until the balloon payment is due.

Deeper definition
For a conventional loan, payments are made every month until the last payment is due, and that last payment is virtually equivalent to every other payment. This is called amortization, and every payment can be calculated on the basis of the amortization schedule.

With a balloon payment loan, the borrower agrees that at the end of the loan term, the remaining balance will be a large lump sum rather than just another monthly payment. Because that unpaid balance wasn’t originally spread across loan term, the monthly payments end up being somewhat smaller until it comes time to make the balloon payment.

 

I completely do understand and I believe you.
Anyhow a 268k residual on a 5 year old f8 is the best way to be upside down... Can’t find many 2016 488 offered at 268k so better not drive the car not to be down by like 30-40k.
Leasing would be my way to go.

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I agree with you!!