Consumer loan vs Bank loan vs Instalment payment | FerrariChat

Consumer loan vs Bank loan vs Instalment payment

Discussion in 'Other Off Topic Forum' started by FerrariTon, Aug 16, 2016.

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  1. FerrariTon

    FerrariTon Rookie

    Aug 16, 2016
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    Aalborg, Denmark
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    Known as Ferrari Ton
    #1 FerrariTon, Aug 16, 2016
    So as the title says - what is your general opinion on the above three payment options? I am writing a thesis at my university therefore I would very much appreciate every answer that I can have here!

    Lets say, that the different payment options goes to buying a ferrari or lamborghini?

    If you didn't have the money for it cash, how would you choose to pay for the car? Would you either pay with a consumer loan, a bank loan or an instalment payment?

    So for any wrong words/if it is difficult to read/answer? I am a Dane.

    Thank you so much for all your answers!
    Kind regards
     
  2. mseals

    mseals Two Time F1 World Champ
    Lifetime Rossa Owner

    Sep 9, 2007
    24,468
    Kuwait
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    Mike Seals
    #2 mseals, Aug 17, 2016
    Cash for toys.

    It's the only way to pay.
     
  3. tomc

    tomc Two Time F1 World Champ

    Apr 13, 2014
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    Tom C
    #3 tomc, Aug 17, 2016
    ^ What he said. We financed our Porsche, because the rates were incredibly low, 2% IIRC. But, we had the dough in the bank, and paid the loan off within 9 months. Paid cash for the Ferrari. Regardless of what route you go, keep in mind that these can be expensive cars to maintain, so keep some funds in reserve for that eventuality...T
     
  4. FerrariTon

    FerrariTon Rookie

    Aug 16, 2016
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    #4 FerrariTon, Aug 18, 2016
    So I would be able to pay my car in cool cash if it wasn't for the fact that I live in Denmark where we have a 180% fee that goes on top of the cars actual value :-/

    Perhaps I should just move? Might be easier to gain access to the really great cars and it is way cheaper than it is here!
     
  5. tomc

    tomc Two Time F1 World Champ

    Apr 13, 2014
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    DFW, Texas
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    Tom C
    #5 tomc, Aug 18, 2016

    LOL. I know, my wife lived in Copenhagen for 18 months. Very expensive in many ways compared to the States. Beautiful country. I'm not sure I'd move to buy a Ferrari, then again, maybe. 😀 Good luck in your quest for a Ferrari...T
     
  6. tundraphile

    tundraphile F1 Veteran

    May 16, 2007
    5,083
    Missouri
    #6 tundraphile, Aug 18, 2016
    I think his question was the opinion of using the three financing options he listed above. Whenever a question like this is posed, inevitably the whole "pay for toys with cash" position comes out very quickly.

    This would be a nice situation to be in, but many cars are financed in some way. Even if you have the money in the bank, the question becomes how you manage your debt. If the finance rate is very low, perhaps it makes sense to use other's money and keep yours in the bank or other investments.

    There is no rational reason to buy a Ferrari unless you believe it will appreciate in price. In that case justifying financing actually becomes quite easy based on your assumptions.
     

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