Financing a 10+ old Ferrari - my experience. Suggestions Welcome.

First, I will say, I have searched the forum. I wanted to document what I am currently going through for relevant/recent information for those who can benefit.

If any member has a better option to refinance at a better rate, I am all ears.

After searching and reading previous threads here and on Reddit, I reached out to the following:

• Woodside Credit
• JJ Best Banc
• Lightstream
• PenFed

Woodside Credit

• LTV - 85% of bill of sale amount
• Duration: 10 year term
• Rate: 9.5%.
• Origination Fee: $395 (per call)
  
• Additional Info: No prepayment penalty. I am told if you have a history of paying cars off early, such as trading them in every 1-2 years, they can impose a "lender fee" which is similiar to a prepayment penalty. I am not subject to this fee. Underwriting - pretty much based on my loan application, credit, there seems to be an almost no doc process. Then again, my loan is sub-100K so YMMV. They say they can fund within 48 hours.

Woodside Credit – Part 2
As I was progressing with BaT verified check out which is done through Caramel. They offer financing. I figured it wouldn’t hurt to submit to move the process along. Somehow Woodside was a quarter point cheaper on same terms

• LTV - 85% of bill of sale amount
• Duration: 10 year term
• Rate: 9.25%.
• Origination Fee: $395??? (I have not seen this on any document thus far)
  
• Additional Info: No prepayment penalty.

JJ Best Banc

• LTV: 85%
• Duration: 60 months
• Rate: 9.13% (APR 9.4%)
• Additional Info: If I went with under $50K there will be no/limited documents but the rate climbs to 9.75%. Over $50K will need income verification.
• Verdict: Woodside with double duration and a small bump in rate, besides an easier underwriting process is the winner between the two.

Lightstream
The application was submitted and they requested all tax returns a couple of days later. I didn’t bother pursuing further. I assumed unsecured personal loans would be higher, especially given what I’ve seen others, like AMEX advertise rates in double digits.


PenFed

• LTV: up to 110% of the car purchase Price (to cover sales tax and fees etc)
• Duration: up to 72 months but the sweet spot for rate and duration for me was 60 months
• Rate: As low as 7.89% and up to 8.49%, but 60 months got it to 8.09%.
• Additional Info: Pending, this was pre-approval and I’ve submitted everything requested thus far. PenFed’s refinance rate is the same as a purchase so I can submit an application with the same info if I buy with cash or with a more expensive lender and refinance with them. I will see when/what they respond with next.
• Verdict: Pending but so far the rate and LTV beat woodside. Duration is shorter but that doesnt bother me. This was a slower process and Woodside was immediate.

First Interstate Bank
- Offered through Caramel / BaT Verified Checkout
- I did not see the other lenders they offered but they showed me this at first thinking I would want the lowest downpayment. I asked them about Woodside and wish I asked them what other lenders they had – strange they didn’t just provide a matrix to choose from and click “next”
- LTV: 100% (similar to PenFed as they'll cover the taxes/fees too)
- Duration 6 years
- Rate 9.69%


Final Decision: Woodside Credit.

Ultimately, given I purchased the vehicle at Bring A Trailer auction (or rather was the high bidder until completing the transaction) and wanted to complete the transaction swiftly without tying up my own money, I went with Woodside, although a higher rate than I am ever accustomed to, seems about right given the high interest rate environment, a used car, a used car that is over 12 years old, etc. Also one of my secured lines of credit is renewing not far from this rate. If PenFed or another comes in competitively lower, I will refinance and chalk up the woodside origination fee as the cost to execute quickly. I typically see refinance rates are above purchase. This lets me kick the can down the road. I may decide to pay off depending on the investment landscape.

I hope this post is helpful for others.

 

Thanks that’s good to know. When I’ve had situations like that I setup online bill pay w my bank so they’ll mail the physical check out monthly. Still have to worry back of mind or ensure you cancel when selling/paying off car but solution for dealing with dinosaurs

 

My credit union I’ve used on my last 3-4 cars don’t finance used older than 7 years. It seems the 8+ is a niche. You either have subprime that will write anything for cheap used cars or these companies that are capping out at 100-150k

penfed seemed to offer the lowest rates. I will switch my application to refinance and see how their process goes

 

I was high bidder and won the auction. I technically have not purchased the car yet. We are going through caramel/bat verified check out so it is done all through third party but all my docs have been signed and it’s the matter of days now. Seller will send them title and they’ll complete transaction / provide me with temp tags and obtain permanent plates.

 

I won the auction before figuring out how I was paying. I had the funds available on hand to pay for the car. Woodside never directly answered me when I asked if they would refi me if I just paid for the car cash as I didn't want to delay process.

In hindsight (but practically in real-time), I wish I did not. I would have paid cash for the car, wired directly, and gotten title and DMV taken care of by now. The only reason I went with verified was I liked the idea of getting the temporary tags and they would take care of obtaining perm tags included in the BAT Fee but the extra time and hassle hasn't been worth it. I also thought it wouldn't delay given I needed 2-3 days to finalize financing and insurance. The fact that the seller had an employee/third party list the car also delayed the process as the information in their system had to be updated to match title to go through the process. I would have thought it would be more streamlined than it what but there is a lot of "stop and go". I took a ridiculous insurance quote from Geico last night just so the process could come to an end on my side and I am letting the broker find a better carrier. Hagerty declined me due to lack of previous exotic ownership although I have a long resume of driving exotics/high performance cars on and off track for past 11+

As a seller though, verified check out may provide some extra layer of protection since Caramel acts as a middle man with a dealer license so technically the buyer is buying the car from them with all as is warranties you would get from a licensed dealership.

 

I'd love the 2% someone else got on 22 year old Ferrari. I'm still at an age that I need liquidity and my money working for me. Even

I am calling them to switch my application to a refinance. I will see how the process goes but the upload, wait and see, has seemed a bit slow.

I've financed all my cars in the last 10 years with my local credit union but they won't touch anything older than 7 years. Hopefully things work out with PenFed and I'll get a 7.5-8% rate and take out Woodside at 9.25%.

 

Yes, as others have said, PenFed is a credit union and they go up to $150K. I think my local credit union I've used for all my daily drivers cap is $100K

 

Egg on face, just realized my credit union I’ve used for all my car loans go back up to 2012. Will probably end up close to where PenFed is as per terms (rate duration) but submitting application. Surprised as I didn’t think they went past 7-8 year old cars