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

i think this way makes the most sense. hang on to most of your cash but put some down to lower the payment, and make sure you're never upside down on the loan in case you need to liquidate some assets.

 

skipper have you check w/ your banker? If so what did they say?

 

The serious answer to your whimsical question is that your stock portfolio is your best bet, as your broker will gleefully lend 50% of your investment balance with no questions asked.


Of course, if you don't have $300k in the stock market, then you aren't going to get a loan for a large depreciating asset (with no money down).

Even having large amounts of real-estate won't cut it these days. Far too many people are real-estate poor.

Now, the above being said, your best interest rates are going to come from Japan (Yen carry risk be hung).

If you have no savings or stocks, then you're going to need solid evidence (e.g. *signed* NFL contract) of 7 figure income to score a no money down $150k loan.

 

Yes, dealers clean up on financing. And the buyer gets to pay depreciation and interest at the same time.

+2006

 

+1

I had a chat with a bank back then about a loan, and as far as a banks risk on an underlying asset's depreciation they were pleased that I was only considering Ferraris.

I have no affiliation and don't know if they are a sponsor
http://www.woodsidecredit.com/

 

Go to your Credit Union.
They tend to have better rates and will finance up to book value on the used car.

 

Dealers are typically contractually obligated to how many points they can make on there loans. The worst banks will let you mark up there rate up 3%... paying the dealer 3& of the total amount financed. Good/reputable banks will allow you to mark up the rate 1 percent. So I wouldn't nesicarily say they are making a killing... Also, you must pay on the loan for three months otherwise the dealer gets charged the profit back. Some banks are 6 months but those are few and far between.

I know many people who finance cars to make the dealer happy and get the best deal possible and keep everyone happy, only to later in the week pay the car off. You only pay the interest in which you use.

I personally think if you are so wealthy that you have 10s of millions in your bank account and a large portfolio of investments as well... sure pay cash. If your net worth is a few million, you would be dumb not to jump on a 3% rate and use the 150k to invest and get a greater return on.

So many eballers insist on cash, when in reality i think the smarter way to go for many/most is to really put that cash to use instead of locking it up in a depreciating asset. Besides if the world comes to an end.

 

...I agree, if the world comes to an end you will be going out with a smile on your face. Whatever you are comfortable with, but buy it and enjoy it now while you still can. Guys who insist you must pay a dealer $400 for an oil change or you can't really afford the car, is hogwash. If you can make the payments - go for it!

 

Agreed - I'm this economy, I would be holding on to all my cash. Financing is the way to go.

 

absolutely...


I am not an economics major, so i am unsure if this scenerio plays out... but if there is hyper inflation like so many overzealous people on the radio say there is going to be... it may not be a bad thing... you will have a low balance and beable to sell it for a high amount of money... even if the asset depreciates. Im not saying your going to make money, im just saying you might not be upside down.

Im sure someone will chime in and say Im wrong... but its a thought... lol

 

My opinion: If you are thinking of buying an exotic car and its cost is more than 1% - 2% of your net worth, you shouldn't be buying it. And if you have to finance it to purchase it because you don't have the cash, you shouldn't even be thinking about it.

 

$10 MM net worth for a $100K F-car? The company would die if all customers lived by that one.

 

If you want your wealth to grow, you need to produce a return on top of inflation with what you have. If you are spending 10% of your net worth on a depreciating asset, you likely aren't going to grow your wealth for that year or the next. If you spend 2% of your net worth on a car, you can stay ahead of inflation if you invest wisely even for the year you purchase the car. There are approximately 100,000 individuals with 30 million or more in assets in the world. On average, they have about 8 cars. Ferrari makes a little more than 6,000 cars a year.

 

I dunno... my net worth has increased 3 times what I paid my F-car in the three years I've had it and I financed the car... That being said, I would be hard pressed to tie cash into an exotic, unless I had copius amounts of cash that I have to get rid of. But, having survived cancer, my outlook in life has changed... When your time comes, you are going to leave this life the way you came- with nothing!! So enjoy it while you can within reasonable limits and if that means using someone elses money, then go for it!!

 

I'm guessing you don't have a number of people dependent on you financially who need to be taken care of if you leave with nothing.

 

Why is everyone who is DEPENDENT on me financially, lazy and uneducated...while
I put in 60 hour work weeks and have not taken a 3 week vacation in 10 years......

 

Yeah, when you die you leave with nothing...Doesn't mean I'm leaving nothing behind. I have a wife and two kids and I've set it up that if something were to happen to me, they would be VERY well taken care of ie: Their standard of living would not be compromised. My sh#T is in order, so I make sure I get to play and not worry too much about my future and if I live to be a hundred, well that would be the cherry on top.

 

So many opinions.......Many valid points on both sides of the argument.

To the OP, It realy comes down to what works for YOU my friend. I wouldn't finance a 150K Ferrari today, but I have my reasons : )

On Jan 1st 2007 I financed a brand new 06' F430 with delivery miles on it (56 to be exact).......It was the WORST financial decision I ever made!

I actually drive my cars, so 24 months after I drove off the lot I had 27K miles on my 430.
Factor in the Financial Meltdown, high mileage, engine replaced at 6k miles, new clutch and fly wheel (8K) and the fact that I paid over sticker....
Well you do the math!!!

I sold the car to make room for a 2010 599 HGTE that I custom ordered. I had 400K sitting in a bank account waiting till it arrived.

When the time was approaching I had finished a deal to purchase a House that my ex-wife would live in (long, long, story)......When I bought the house I paid cash (nice house in a beach community).....When I went shopping for a mortgage I was shocked by how HORRENDOUS the rates were. In fact they were so bad that I ended up NOT financing it at all.

That 400K that was sitting waiting for my 599 was spent 5 times over and I had a decision to make.......Should I finance my 400K dollar dream car??? Should I bite the bullet and pay cash, not sleep well for 6 months, etc??? I was distraught. I wanted the 599 SOOOOO BAD and my ego was crushed by the notion that I would have to call my dealer and say "oops, I made a boo boo"....It was 4 weeks of hell!

In the end, I couldn't bring myself to financing a depreciating asset that would depreciate exponentially with the miles I put on my cars and the tanking economy. I had to pass on the car EVEN though I had MANY financing options that would make it doable. FNA and my dealer were wonderful, considerate, and very understanding..

It just made no sense to me to loose all that value at such an insane rate that every time I started up my 599 I would have to think about how many miles I put on it.

If I knew that the car would be in my stable forever then MAYBE I would have considered financing BUT I dont keep my cars longer than 3-4 years. I swore I would keep my 430 and Im sure I would have sworn to keeping the 599 but I always want the latest and greatest.

DISCLAIMER: The 430 was and still is the best sports car I have ever driven, when it wasn't in the shop it was SO MUCH FUN every time I drove it......IT WAS BETTER THAN I EVER THOUGHT A PRODUCTION SPORTS CAR COULD BE! I miss it every day.


BUT, Im patient and will once again drive my dream Ferrari. It will be pre-owned and have plenty of miles on it. I will let the first guy take the hit. Meanwhile I'll happily drive my 997TT and Panamera 4S and watch prices fall and fall and fall....

Ape

 

I followed your story and to want a 599.. sold my 430 spyder to do so. building a car your way-is a once in a lifetime goal!! - to satisfy my NEEDS i now find myself looking Vintage.
for the same RANGE as a 599 - A Daytona looks good , upgrading , and showing gives me
a part time hobby, driving is still a joy (abit not as fun ) . and at the end of the day might even
break even

 

yes... but how many of those people buy a car every year... or every other year... or is it every generational change?

Alas, its almost pointless because I am sure like Harley Davidson and MINI... Ferrari makes there money on licensing plain and simple. That is truly what keeps the doors open

 

If I could borrow 400k at 7%, i would right my check early every month. 400k in extra capital would change my LIFE!!!

 

Why would $400k change your life?

 

To the OP- Here is an idea. Find an owner who is willing to sell you the car seller financed. That way you can both agree on the terms. No down, low interest, long term. I'm only half joking. You may find a seller who is willing to give you an interest rate that is better than what he could get if he put the money in a conventional investment. He will be a lien holder on the car and you may have to put up some collateral, (Do you have any equity in your house?) but creative financing is only limited by your imagination.

Another idea if you do have equity is sell a note on it and use that to buy your car.

Some of you may laugh at these ideas but I bought a car this way, so I know it can be done.

 

I'd bet the majority HERE (on this website) pay cash.
From what I have read over the years, most of the guys here are pretty fiscally conservative. Most would say 'Don't buy it unless you have at least 15K in cash to fix it when you break a timing belt/valve train.'

 

lol