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How can I get a Ferrari Loan and how much down?

Discussion in 'Ferrari Discussion (not model specific)' started by Kenneth Ramirez, Apr 23, 2018.

  1. RedNeck

    RedNeck F1 Rookie
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    I'd say 95% of the forum is....there are definitely a couple drops of peepee floating around in the lemonade :D
     
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  2. Justinthecity

    Justinthecity Rookie

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    In a perfect world you nailed a good job and you had excellent credit with a huge down payment of a car and not just any car.....You have to find the specific Ferrari and do extensive research on said car... Plus maintain the car... In my opinion Ferrari might not be the right car.. Try porsche.
     
  3. Unknown523

    Unknown523 Karting

    Jan 7, 2018
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    If you're budgeting from a business standpoint here's what it'll take to comfortably afford an F12, lets just say.

    1. Down payment. Banks will want 30% minimum so there's a cheque for 132,000 on a 500K car. (With taxes) To put 132,000 down on a car you probably don't want that to be more than 10% unless you're insane. Having 1,320,000 really isn't that much even if you have guaranteed investments providing 20% which will yield you 264,000/year in the case of your income coming to a complete stop. But let's move on to the income part..

    2. Your payment is around 7,000 for a 60 month loan with about 4.99%. The smart thing to do is invest half of your income. Let's say you make 100,000/month (Proven 1yr) which leaves you with about 1,320,000 mentioned above after 1 year, 3 months (After you paid corp tax). So assuming you've been making 100,000/month steadily for all that time and feel you can continue you can now budget. Let's say you'll invest half, 50,000. With the other 50,000 you probably have a really nice rent or a mortgage which will all expenses probably won't be less than 15,000. So you're left with 35,000 out of which we'll deduct the Ferrari. 28,000. Now you have all your insurances, food, gas, bills. You're left at around 25,000. Travel & Shopping will really range depending on how you are but usually for a nice lifestyle you'll run 10K at least.

    So pretty much you should be making at least 80,000/month proven over 2 years (To get an approval), have good credit, make that income from a business to not pay 50% in taxes and also not have any other debt at all whatsoever. If you're saying (This is crazy!) Then just wait until the price of the whole Ferrari isn't more than 15% of your net worth and you know that if your income stops you can maintain your current lifestyle. Having a ''good job" probably won't land you in a new car anytime soon. Or an older model for that matter. If you only have 100K saved somehow after like 5 years, you'll be struggling to maintain the car and you won't have much else to enjoy.

    If anyone thinks i'm overthinking this or providing the wrong advice, would love some insight as i'm still young. This is how I see paths of being able to own one of these cars.
     
  4. RedNeck

    RedNeck F1 Rookie
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    I'd say that may be good financial advice, but there is a huge difference between an F12 and a 348/328/308/360, etc. I don't think the OP is looking for a brand new F12 (who knows, as he hasn't posted since starting this thread). A "good job" and little debt, one can easily afford a $50-60k car plus reasonable maintenance. All the cars mentioned earlier have pretty much reached the bottom of their depreciation curve.
     
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  5. RedNeck

    RedNeck F1 Rookie
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    What is your reference? No offense but looking at your profile, you are not a Ferrari owner yet (Good luck, btw). Why would someone who wants a Ferrari try a Porsche? I think if the "right" car is bought at or near the bottom of the depreciation curve, a Porsche would probably be an unwise investment, as it would cost more in depreciation than maintaining a good Ferrari will. If you are searching for a Mondial, you already know this.

    Sometimes I think that some people are more interested in discouraging people from buying Ferraris to "purify" the club than actually helping people.
     
  6. Justinthecity

    Justinthecity Rookie

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    Justin Michael DeFillippo
    No offense taken but this isn’t my first rodeo and yes you’re correct I do not own a Ferrari at this time that’s one of the reasons I paid to be on this site to help me find a particular car and the Mondial fits my needs as I have children. As for reference um idk life in general. It’s my opinion plain and simple. If I was personally looking for a turn key low maintenance car relatively cheap I would go with Porsche. Unless this kid is silver spooned then buying a Ferrari at that age without means is retarded. My father would’ve given me a crack if I even asked such a dumb question.


    Sent from my iPhone using FerrariChat.com mobile app
     
  7. davemqv

    davemqv F1 Rookie

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    Jesus, you guys are being tough on this kid.

    To the OP - there are companies like Woodside and JJ Best who exist to loan out money for an exotic car. You need a minimum 700 FICO score, good credit, reliable income and a cash down payment of (I think) 10%. They also prefer you to have one other car loan already on the books somewhere, even if it's just for a $9,000 used Mazda. They want to see that you can successfully stick to the terms of the loan. They'll give you up to 12 years to pay it back, but it's high interest (7-8% I think), so you'll pay a good deal more for your car than you would otherwise. But if the experience matters more than the money (which it should if you're buying a Ferrari!), then c'est la vie.

    If you can meet those loan requirements, you may also meet the requirements of a bank for a personal loan or a LOC. DO NOT TELL A BANK YOU WANT THE LOAN TO BUY A FERRARI. They'll turn you down flat. It reeks of irresponsibility, even for someone twice you age with a good job. Tell them it's for something else, pay it back on time, and you'll have no problems. Ferrari also has in-house dealer financing. I've never worked with them but you could try.

    I would seriously consider the fact that these cars are expensive to maintain, and they need to be looked after. This is not to warn you off, but to make you add that into your budget. I think with Woodside you can even borrow more than the purchase price of the car, to account for a major service or restoration, but that's only for the first time. You need to be able to handle the costs on an ongoing basis. Otherwise you'll end up with an Italian paperweight in your garage for years, or take a bath on resale and end up owing your loan company more than you sold the car for.

    Someone in your position will likely have to make a lot of financial sacrifices in other areas of their life to own a Ferrari. That said, don't listen to all the naysayers here. Many people here LOVE to criticize the life choices of others. It should be called "Judgechat". Lol. If you're young, unattached, and don't have children and a mortgage hanging over your head, I'd say this is the perfect time to try and make your (first) Ferrari dream come true. You're only young once so I say go for it. Nobody gets to 45 and says "I wish I'd been more boring and had less fun in my 20's".

    Good luck to you!
     
  8. vrsurgeon

    vrsurgeon F1 World Champ
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    I'll be the first one to tell anyone "do what you want, it's your life... it's your balance sheet." When we're young, you make stoopit decisions because we're either impatient or don't have the knowledge to make a good decision. Like so many ghost-posters OP didn't give enough information for us to give any truly detailed meaningful response to high query regarding trustafarian status etc. Thus, the reader can't NOT presume the worst from a financial standpoint (i.e. high education loans, no money for downpayment, living with mom and dad, College Major and focus is in Parks and Recreation.. etc.)

    So the other aspect of this is, like with many people in their 20's who are coming out of college with HUGE loans... if MORE debt is assumed on top of this in an irrational and hasty decision, who pays for this when things go south? With the car, it's repossessed and lender takes it back and resells it and the OP has a big hit on his credit score. Which means he can't get a good line of credit and can't get a house, jobs check credit scores as well, etc. etc. If there is a school loan and THAT gets discharged, WE all pay for that. When a person makes a stupid financial decision and they don't contribute to the economy in one way of another.. WE pay for that. So when a person posts with a glaringly STUPID financial decision. Not being called out on that is irresponsible for everyone involved. Had I bought what is arguably the most expensive car right out of college, events in my life would have been dramatically different. The debt would have prevented me from being where I am today.

    I don't know the OP and the situation may be dramatically different. But there are enough people out there at 45 that say "I wish someone would have told me... " :)
     
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  9. jjtjr

    jjtjr Formula Junior

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    Amen to that brother! You should see where I live:)
     
  10. Natkingcolebasket69

    Rossa Subscribed

    All good but not if you lease, you dont need to make that much at all.


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  11. azlin75

    azlin75 Formula Junior

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    To put things in another perspective try buying a fairly well equipped 3/4 or 1 ton pickup now adays. I bought a really nice loaded 3/4 ton truck and was pushing 70k 5 years ago. 60k isn't all that bad in the grand scheme of things considering sticker on some of the cars that are now at around 60-70k. And since most of them have depreshiated they shouldn't lose too much more.

    As far as maintainance assuming you get a fairly sorted car while it's more expensive then your average Ford it's not as bad as some cars and trucks on the road. If you budget for repairs (and really you shouldn't be considering a car that is a "play toy" unless your already saving) it shouldn't be too bad but they are Ferrari's and they do break.

    Someone mentioned woodside credit earlier and the figure of 10% down. I called in December just to inquire what the rates were and they told me before taking any personal information it was 20% down. They also offer 12 year loans but I'd sure be hard pressed to accept a loan on those terms. Your better off making a larger down payment and taking a loan on a lower amount for 3 or 4 years. Also from experience it seems the higher percentage of down payment the easier it is to be approved for the loan. While I haven't bought many vehicles in the last few years I have purchased a bunch of equipment for my business. We were able to finance our last prices of equipment for 0% for 4 years since we paid 40% down. Credit score and past history with the financial institution as well as credit score probably played a significant role as well.

    I'll probably never be able to consider a new Ferrari purchase, though if I ever do it will be quite the accomplishment, but being able to consider a 100 to a 120k car isn't completely out of the realm of possibilities for me. But I'm also not 25 either closer to retirement then anything else.
     
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  12. AshAP

    AshAP Karting

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  13. TheMayor

    TheMayor Seven Time F1 World Champ
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    Vegas baby
    For all you who say it's not good to own a Ferrari at 26, let me say I had one at 24.

    Now, I paid $8,000 for it but that's beside the point! :)
     
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  14. TheMayor

    TheMayor Seven Time F1 World Champ
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    Vegas baby
    That's "Vegas baby" :)
     
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  15. Nospinzone

    Nospinzone F1 Rookie

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    Meanwhile the Ken has been lurking, but no response.
     
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  16. paulchua

    paulchua Cat Herder
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    I noticed that too, he's had multiple logins since his first post. We're all throwing darts in the dark without further context from the OP.

    Ken, let me say - it never helps to ignore engagement, especially to those here that were kindly and sincerely trying to help you.

    If your plan was for a 'one and done' (or personal situation doesn't allow prompt responses) may I recommend this forum instead?
     
  17. Unknown523

    Unknown523 Karting

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    I never knew they were 50-60K, noted. And yes, that is true.
     
  18. Unknown523

    Unknown523 Karting

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    #93 Unknown523, Apr 26, 2018
    Last edited: Apr 26, 2018
    Please elaborate on how you "don't need to make that much at all". A lease on a 350K performante with a 50% residual with no money down is 7,000/month. Also knowing in 3 years you're either left with no car or have a big cheque to write which you can't because you don't make that much. And you get taxed a **** ton by making even 25K/month on a non corporate side.
     
  19. Natkingcolebasket69

    Rossa Subscribed

    End?

    Ill elaborate; firstly i am not sure about your numbers; i had my tr for. 100k, 40k residual , 15% down and that was 1k a month. Check Putnam and premier. I know i am 100% right on mine.
    If i were to get a 300k car putting. 60k down with a 160k residual the payment would not exceed 3500.
    Second i run a business and i can easily expense it like many people do.
    Then let’s look at a 200k salary in California, married, no kids. Pretty good salary, achievable i would say. After tax thats 12k a month. Assuming you have no debts, a million dollar home with 20% down and a mortgage at 5k that leaves you 3500 left.
    Chances are you can get the car cpo with some warranty.
    And if your significant others also works then its not that far fetched .



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  20. paulchua

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    #95 paulchua, Apr 26, 2018
    Last edited: Apr 26, 2018
    My neighbor did the same...2 times in fact and he was by no means wealthy...when he sold one of them 40 years later however...

    ;)
     
  21. paulchua

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    #96 paulchua, Apr 26, 2018
    Last edited: Apr 26, 2018
    I think he meant lower priced older Ferrari (i.e. 355, 360,etc)

    The plus side on some of the older cars is they are depreciated and may have the possibility of appreciation. I know some people that have technically been 'paid' to own a Ferrari: case in point, say if you bought a GT4 versus a loaded Honda Civic 5-6 years ago.

    That's why it's hard for anyone to give good advice since we know nothing about the OPs situation and balance sheet, and he has yet to respond even though he's logged back in multiple times...and people wonder why people give posts like this a hard time and it being a tough crowd.

    Kind Regards
     
  22. paulchua

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    I think it depends on what Porsche - I would be proud to have a used Boxster/Cayman. The Mondial line is great if you can find one that was maintained well, again - hard to give good advice to the OP since when says he plans to get a Ferrari - we don't know if he means a 488 or a Mondial 8. The difference is literally an order of magnitude. Like my previous post stated, if he has asked this question 6 years ago, it would have been a brilliant decision to purchase a Ferrari*

    *Specifically a well maintained 308 GT4 (when you could get them all day in the 20s)

    Notice how most of the comments dogged the car - we know who has the last laugh today.
     
  23. Shark01

    Shark01 F1 Rookie

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    I question this as well.....I had Lamborghini quote me a lease on a used $210k Huracan last month. $10k down, payments $2,800/mth residual around 50%. And yes, its insane to throw away that much money to "rent" a car in my financial position (top 5% of household income).
     
  24. RedNeck

    RedNeck F1 Rookie
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    I love the Caymans and would love to have one someday, they are absolutely beautiful. This whole conversation is flawed from the git-go, though because the ghost OP just seems to want a Ferrari to have a Ferrari, assuming no knowledge of the cars themselves, other than the fanfare created by the name. Does he want the "oohs" and the "ahhhs" alone, will he be happy with an older Ferrari that can be taken by a Honda Civic? Is he an F1 fan, a historian? Who knows?

    The second flaw is that its being approached from a purely financial standpoint, which completely negates the entire reason to own, drive, enjoy a Ferrari. There's a million better financial decisions to make than to buy a Ferrari.Gotta have the love to make it worth it, the attention is only short lived.

    And yeah, I remember watching a Mondial on ebay go for something like $15k in the late 2000's...when I was broke.
     
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  25. paulchua

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    Agree with you 100% Hopefully, the OP gives us some context.
     

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