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best way to finance a 150k ferrari with zero down?

Discussion in 'Ferrari Discussion (not model specific)' started by Skipper, Mar 21, 2010.

  1. Skipper

    Skipper Formula Junior

    Sep 24, 2006
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    Frank Drebin
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  3. scoobysteve

    scoobysteve Formula Junior

    Apr 20, 2004
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    Stephen
    And while were at it, I'd like to know where I can get a loan to buy a $2M house in California. I don't want to put any money down. I've tried regular banks but they want high downpayments and have crap rates. Also, I understand banks are being more restrictive right now and aren't doing interest-only. I'm realistic and reasonable, so I'm looking for a 720 month amortization.

    ;)
     
  4. Bullfighter

    Bullfighter Two Time F1 World Champ
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    Jan 26, 2005
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    Jon
    Sure, Ferrari prices always go up. Let's see, how to finance this investment...

    Here's the answer, based on what the world has just gone through: if you're buying luxuries, prefer to use cash.
     
  5. Carbonero

    Carbonero Formula Junior

    Sep 2, 2009
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    Bill
    Very good advice. Works every time...
     
  6. Skipper

    Skipper Formula Junior

    Sep 24, 2006
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    Frank Drebin
    i am of the opposite train of thought which is cash is king , rather finance 150k pay a few points and keep cash in hand.
     
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  8. Blue@Heart

    Blue@Heart F1 Rookie

    Jun 20, 2006
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    Ok I'll be the dick who says it: Just use 19 credit cards! It worked for what's-his-face! :p
     
  9. technom3

    technom3 F1 Veteran
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    Mar 29, 2007
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    Justin
    This is not pointed at you... but I love it when everyone on the internet pays for there cars cash... when in fact most of them dont. Its the whole e-baller thing... it just annoys me.

    Also, while financing a 150k car with zero down may not seem smart on the surface... for some... putting the usual 20 percent down which in this case is 30k... sometimes you can do more with that 30k a month than 3.9% rate. Also, having a car loan that you consistently pay on is good for your credit. Plus with no pre payment penalty there really is no down side.

    THE problem lies when you have 2k dollars in your bank account and you are trying to finance a 150k dollar car with zero down... Lets not always assume that the person is like this...


    PS

    you will find no better rates than pen fed unless you can get usaa
     
  10. darth550

    darth550 Five Time F1 World Champ
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    Until it was announced to the world by his trustworthy broker, you mean?
     
  11. the_stig

    the_stig F1 Rookie
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    Sep 19, 2005
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    There actually was an article in one of the car mags (I think AW or MT) about buying a Ferrari on a balloon note and driving it for free. Article was probably late 1970s from my vague memory of it.
     
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  13. Skipper

    Skipper Formula Junior

    Sep 24, 2006
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    #10 Skipper, Mar 21, 2010
    Last edited: Mar 21, 2010
    10 reply posts and one reply to the thread starting question ?

    does usaa offer loans over 100k?
     
  14. The Ape

    The Ape Formula 3

    Feb 28, 2007
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    Ape
    Frank,
    The Banks are not in the business of financing highly depreciating Auto assets any more. The downside is obvious.......If you were a Lender would you give someone 150K with no money down on a pre-owned Ferrari?

    The way I see it is that you would be paying through the nose by structuring your Ferrari purchase like this. Paying an interest rate (of any reasonable percentage) while the value of your car drops dramatically seems rather foolish. Obviously, ANY financing of a car has this issue built in but on a 150K Ferrari??

    Then there's the upkeep! Is it a 430? If so, is it under warranty? If not, the potential for VERY costly repairs (especially F1 issues if not a Manual).....

    I firmly believe that if you cant afford t pay the 150 in cash then you have no business buying the car.....YOU CAN STILL FINANCE IT, but you ought to have the funds available or it's a bad business decision....

    All that being said.....I've burned through so much money on bad car decisions that I may be the worst offender that I know ; )

    Ape

    p.s. WHAT CAR ARE YOIU LOOKING AT?????
     
  15. CornersWell

    CornersWell F1 Rookie

    Nov 24, 2004
    4,650
    Financing (of toys, anyway) is a legitimate way to purchase without withdrawing other assets from the market, which may earn a higher rate of return. You come out ahead (interest-wise) by doing it. Although, you'll still have to pay for the depreciation one way or the other.

    Firms like Merrill Lynch will open Loan Management Accounts, if you have the collateral (such as investment accounts) with them. You pay low interest (LIBOR + 50bps), can write the interest expense off (IIRC, as if it's a mortgage) and can lock it in, if you like. Otherwise, it's a floating rate, so you take the risk of flucuations.

    However, these products are not for everyone. And, if you do have one, it may interfere with other financings (such as a mortgage re-fi).

    CW
     
  16. robert_c

    robert_c F1 Rookie

    May 12, 2005
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    I can get that for you . I've done over 50 of them.
     
  17. jimangle

    jimangle Formula 3

    Nov 5, 2003
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    USAA will offer home equity loans of 125k or more. They might do a car loan for 150k, I'm sure you'd have to ask about it.
     
  18. technom3

    technom3 F1 Veteran
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    You couldn't be further from the truth. Banks do not even weigh the potential depreciation of the car. It typically has ZERO affect on the approval of the loan. The bank only concerns themselves with the value of the vehicle at the time of the loan contract (unless of course we are talking about leases, but we aren't so lets not muddle the two). Banks only insure that what they are looking to finance is not over valued and they are starting this whole adventure upside down. (just like houses)

    Banks that finance cars are in the business of financing depreciating assets. That is a FACT no ifs ands or buts about it.

    Banks that are still standing and are still lending on high dollar items, typically "buy" (base there approval) on the person not the vehicle. They typically look at the important things such as credit score, length of time at there residence, length of time at there place of business (this helps determine stability). They also look at income to determine your ability to pay your liabilities as well as ability to take on emergency responsibilities. They buy the deal on the fact that you are stable, and have always paid your bills and plan ahead for the future. That you have been building an immaculate credit record and report with lenders that it isn't likely that you would sour everything based off of one car.

    They use there past experience as well as algorithms to determine whether or not they should buy the deal

    If you want to see a very interesting business model... take a look at buy here pay here lots. There business model is based on planning on people not paying you back.
     
  19. MBFerrari

    MBFerrari F1 Veteran

    Jul 2, 2008
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    Matt B
    I am a user of USAA as well, and they are awesome with rates and services, but not sure they would do this...I guess it can't hurt to ask though.

    MB
     
  20. Skipper

    Skipper Formula Junior

    Sep 24, 2006
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    Frank Drebin
    430 spider is the target
    assuming 100k is the loan limit
    then its 50k down
    thanks all
     
  21. SGM

    SGM F1 Rookie
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    Sep 27, 2006
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    Have you tried Woodside Credit? I used them when I bought a Gallardo a few years back. I put down 70 and they financed 100.
     
  22. M.James

    M.James F1 Rookie

    Jun 6, 2003
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    Michael.C.James
    JJ Best Bank and Trust Co. - not sure if they do 'no money down', but they do finance exotics.
     
  23. SrfCity

    SrfCity F1 Veteran

    Nov 1, 2003
    9,842
    Orange County, CA
    IMO your best bet is equity line if you've still got one lying around. Just use it and pay it back as fast as you want. The goal is to pay it off and you're only paying interest on what you use. That way you're in control of the borrowing.(until rates start going up ;) )
     
  24. toparkt

    toparkt Formula Junior

    Oct 20, 2006
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    orange county
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    Andrew Goetz
    I often debated with myself borrowing money for my F cars or using cash. Loans can be from
    6 to 10% of amount borrowed. Dealers LOVE LOVE to finance cars - that is where the money is. The second the car is driven off the lot - your purchase contract has a present day cash value that most of the time is sold before the back wheels are on the street.
    Just like home loans - it is the "PAPER" and car dealer is intrested in selling.

    Big picture is if you can "BEAT" the rate -- can you invest 100 k and get more that
    6 to 10 % ... - for short periods , yes over the long haul ???? most can't.
    Many many people can make money in Business, but making money ON money - over time
    is an art few can master...
     
  25. BigTex

    BigTex Seven Time F1 World Champ
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    Dec 6, 2002
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    Not if you mention the word "Ferrari".....they loan you the money to blow on coke and strippers, they don't care, it's a SECURED loan, though, by your house!

    I agree the days of ANY normal lender bankrolling Specialty Cars, or motorcycles for that matter are gone.....

    You mentioned the Specialty loan houses, use one!
     
  26. BigTex

    BigTex Seven Time F1 World Champ
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    Dec 6, 2002
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    "50K down" is not quite "zero down"....

    So, respectfully, your first post of the thread was a dream.....you woke up, and $50K is missing from your wallet.

    Enjoy your new car, tho.......it'll be FUN!!
     
  27. tundraphile

    tundraphile F1 Rookie

    May 16, 2007
    4,162
    Missouri
    This thread is sooo 2005.
     
  28. BigTex

    BigTex Seven Time F1 World Champ
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    Dec 6, 2002
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    Bubba
    I could hand BoA $150K in a sack, and they wouldn't loan it back to me.....LOL!

    Chase was much more agreeable, they opened an account just to cash a $10K check for me the other day.....I guess it's a statistics game....I ate dinner with the balance, over the weekend....
     

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