Ca someone explain to me how Ferrari Financial Services works.

Why not go with another lender? I took a small loan against mine as I put almost 100K down but FFS couldn't touch the normal bank rates with my 833 FICO score. FFS was over a point higher. Screw that.

 

I believe they give you money to buy a car and then you pay it back in increments at an inflated interest rate.There is a reason it's acronym is "FFS"

 

Try Lightstream or PenFed

 

Likewise when I was purchasing three years ago. FFS was a good bit higher than other places I checked, although I don't recall that it was a full point. In the end, we just paid cash...T

 

FFS in my experience don’t really need all the usual paperwork that a standard lender does. They make a lending decision on the basis of a telephone call from the underwriter (in my experience anyway), they will generally go to a higher loan to value ratio on Ferrari products, and offer higher residuals on Ferrari’s than the standard lenders in many situations, which can make the repayments better for those buying with lower deposits. That said, interest rates wise I’m sure you pay for the way they work in them, but that’s capitalism right? Like a fast track mortgage, or an unlimited credit card, the risks they take are incorporated into making a little more from that client that needs the service... what’s a point in interest rate if it means someone with a complex financial status that struggles to meet criteria of a mainstream lender can buy their dream car

 

I’m just guessing here but it might have more to do with the dealer franchise being owned by someone else. Maybe it would be possible if a franchise owner owned more then one dealership in different states but then the dealer could also transfer the car between locations pretty easy too. Probably has to do with “sales credit” to the selling dealer, but I’m just guessing.

Besides the way rates have increased I’d avoid a loan unless you find an awesome deal. You would be better off investing and saving to pay cash then paying some of these interest rates. Just the other day I inquired on a vehicle and the rates kinda scared me from what they were 6 months ago.

 

I learned that the rate from FFS is actually driven more by the dealer themselves, just like other dealers. FFs is available to all ferrari dealers, why would one not allow you to use is beyond me, unless there is financial incentive for the dealer to do so, such as sell you higher rate with another lender or just want you to pay all cash.

Another key thing to remember is that FFS loan does not show up in the three main credit bureau in US, except the inquiry part. So that actually could be quite helpful in certain situations.