Classic car financing | FerrariChat

Classic car financing

Discussion in 'Ferrari Discussion (not model specific)' started by Husker, Apr 30, 2020.

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  1. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,788
    western hemisphere
    I'm not real excited about dumping $80-100K cash into a vehicle. I am curious as to who has taken a "collector car" loan, with 8-10 year term. What are you seeing as the prevailing interest rates, etc.? What has been your experience?
     
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  2. paulchua

    paulchua Cat Herder
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    Jul 1, 2013
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    Interesting question, Thanks for asking for this especially in this low interest rate environment, I too am curious.
     
  3. LARRYH

    LARRYH F1 Veteran
    Owner Rossa Subscribed

    Jun 3, 2011
    9,142
    virginia usa
    #3 LARRYH, Apr 30, 2020
    Last edited: Apr 30, 2020
    I do not know their current rates but woodside credit is good they offer 12 year financing I used them sometime ago on an expensive rare appreciating car... the process is hassle free
     
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  4. paulchua

    paulchua Cat Herder
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    Thanks for the info.

    I figure anything 3.25 and below ain't bad...(average inflation rate.)

    Is that possible?
     
  5. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,788
    western hemisphere
    There are several companies online that offer long term financing for classics/exotics, but I hesitated to fill out a page worth of info just to figure out what is available in the market. I am going to guess mid 5s on interest rate with a 8 to 10 year term. If so I wouldn't be interested. If it's low 3s I might be.
     
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  6. GrigioGuy

    GrigioGuy Splenda Daddy
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    Nov 26, 2001
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    Home equity loan. Or, if you have 2-3 normal recent cars that are paid off, talk to your local credit union about refinancing them. I was able to use that little trick to pull about 15K out of paid-off pickup at 2.91%
     
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  7. psych0hans

    psych0hans Karting

    Jan 12, 2020
    53
    Bombay, India
    Banks hate him!


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  8. audi_328

    audi_328 Formula 3
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    Jul 13, 2005
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    Around 10 years ago, that's basically how I got my 911 when PenFed wouldn't finance a car with more than 100K miles (car I wanted had 110K). One of their customer service people told me how to do it all online, as I had a late model Tacoma that was paid for. Sell it to myself (same name for buyer and seller, but I included my middle initial in the seller name so they were "different"), got approved, sent them the title, got my '86 911 at 2.5%.

    What's great about PenFed is their rates are usually among the lowest out there, and they only require the used vehicle to have less than 100K miles, no age restriction (as I recall). Didn't work conventionally for the 911 because of the miles, but if I was looking to finance anything with fewer than 100K miles they would be the first place I looked.
     
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  9. paulchua

    paulchua Cat Herder
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    Jul 1, 2013
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    Ahh...makes sense folks.

    My garage is full at the moment but good to be reminded of this route if the need arises.
     
  10. plastique999

    plastique999 F1 Veteran
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    Nov 9, 2008
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    What kind of rates and #’s?


    Sent from my 16M
     
  11. gilly6993

    gilly6993 Formula 3

    Aug 20, 2009
    2,475
    Longmeadow, MA
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    Eric
    No offense but an 8-10 year loan for 100K is insane....A 12 yr loan at Woodside is almost 7%....8-10 years likely pushing 6%....it makes zero financial sens to borrow money for that long on a car, unless it's at or near zero percent.....
     
  12. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    Wood side is #1 but report on credit ...best is to use penfed which has the best apr ever OR putnam/premier finance leasing that won’t report to
    Credit.


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  13. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    They are the best!


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  14. gilly6993

    gilly6993 Formula 3

    Aug 20, 2009
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    Eric
    Few, if any, credit unions are loaning money on a car for 8-10 years....


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  15. plastique999

    plastique999 F1 Veteran
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    Exactly


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  16. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    If someone wants to borrow 8-10 years then I’m not 100% sure they should buy a Ferrari in the first place


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  17. 19633500GT

    19633500GT F1 World Champ
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    eh, slippery slope. Lots of people don't like to crush cash flow. So, if you have stellar credit and can make the monthly nut fine, just not a balloon, a lot of business owners may prefer that.
     
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  18. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    Not 10 years with the kind of APr they have and reporting on your credit. I did finance cars and used PfS much better as far as not tying cash and they don’t report on credit. My opinion of course. The low payments from
    Wood side is their appeal
    For sure.


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  19. Thecadster

    Thecadster F1 Veteran
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    Apr 27, 2017
    6,704
    I posted the following in response to this deal someone posted in the 458/488/F8 sub-forum.

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    I’m not opposed to financing at all. I would rather see someone strap into the same note, but for 5 years at 1.9% interest. The payment would double, but the interest charge would be but a tiny fraction (initially $333/month versus $1,140/month). That extra $1800/month would give you an immediate $800/month return. Financing can be a useful tool, especially when you arbitrage other investments or business interests; but when financing is merely a crutch to lever into a car that you otherwise probably couldn’t afford, that’s a bridge too far.

    For the most part, I think it a better strategy to secure much lower interest terms, even if trading a much higher monthly for the additional savings.
     
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  20. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    Agreed!


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  21. gilly6993

    gilly6993 Formula 3

    Aug 20, 2009
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    Eric
    You can not afford a Ferrari if you have to finance it for 180 months....that's absolutely insane....
     
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  22. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    +100000


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  23. tres55

    tres55 F1 Rookie
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    Sep 18, 2012
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    15 years is a mortgage! On a depreciating asset! Absolutely bonkers. I'd guess 5% or less of the people taking on a deal with that term has a valid reason or cash flow structure that justifies it...probably.
     
  24. ewright

    ewright Formula Junior
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    Nov 17, 2003
    598
    Well said.
     
  25. GrigioGuy

    GrigioGuy Splenda Daddy
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    Nov 26, 2001
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    Trailer Swift
    Annnnnd here we go, the "you don't deserve a Ferrari because you don't handle your finances like I do" crowd has entered the building.

    You do you, and let him do him.
     
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