Classic car financing | Page 2 | FerrariChat

Classic car financing

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

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  1. Thecadster

    Thecadster F1 Veteran
    Rossa Subscribed

    Apr 27, 2017
    6,704
    Ok...so there’s no wrong way to buy these cars? Is there at least a better way? Does everyone do a great job of managing their money? Maybe I misinterpret your comments?
     
    Shark01 likes this.
  2. GrigioGuy

    GrigioGuy Splenda Daddy
    Lifetime Rossa Owner

    Nov 26, 2001
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    Trailer Swift
    Not your wallet. Not your problem. Easy enough?
     
  3. tres55

    tres55 F1 Rookie
    Rossa Subscribed

    Sep 18, 2012
    3,479
    Canada
    I agree with you...but I'm on a public forum right now stating my opinion...it's idiotic but hey you might get hit by a bus tomorrow so giver.
     
  4. RonH

    RonH Formula 3

    May 29, 2016
    1,061
    Newport Coast, California
    Full Name:
    Ron H
    I remember in the Great Recession I bought a 2 year old CL AMG for $37K. It was $130K new. Best buy I ever made. The owner lost his job and could not afford the payments. Those who leverage themselves get crushed in bad economic times. At the moment I am in all cash and waiting for opportunities. Lots of great cars out there that I would like to own. So I encourage others to go out and leverage car buys that I may ultimately be interested in. ;)
     
  5. energy88

    energy88 Two Time F1 World Champ
    Silver Subscribed

    Jan 21, 2012
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    West of Fredericksburg, VA
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    John
    You might want to look into assuming a lease (if permitted) and what the residual value of the car would be at the end of the lease, and if a bargain, make your move at that time. Of course, this strategy only works for unusually low residual values and requires a vigorous search for candidates.
     
  6. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    I think u are getting carried away:
    1-the OP asked the options, I personally listed it to them and what the preferences were.
    2-The comments about the 15 year old mortgage /financing are not directed at him but a response to a finance offer shared by a poster. The OP had only mentioned 8/10 years...

    Easy enough?


    Sent from my iPhone using Tapatalk
     
    LARRYH, Shark01, Lusso123 and 3 others like this.
  7. paulchua

    paulchua Cat Herder
    Lifetime Rossa Owner

    Jul 1, 2013
    15,979
    Menlo Park, CA
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    I understand both points of view. I agree to get a 10-15 year loan on a brand new mainstream Ferrari is most likely one of the least financially prudent things one can do.

    The other side of the coin all depends on the APR and the car. If one can get a loan (be it a HELOC, or another type) below 3% - I argue this is financially wise if said funds were applied to purchase something that has the high potential to appreciate.

    It is speculative in nature if applied, say to a vintage Ferrari, but so is much of other equities.
     
  8. LVP488

    LVP488 F1 Rookie

    Jan 21, 2017
    4,839
    France
    Indeed - with some forward thinking, it's better to borrow for a house more than you seem to need, so that you get the lower interest rate and save cash for other expenses.
    If / when you buy a house or appartment, finance it even if you could pay cash; then when you want something else that typically does not offer the same conditions you can use the cash...
     
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  9. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,788
    western hemisphere
    #34 Husker, May 8, 2020
    Last edited: May 8, 2020
    I am 53 and retired since 46, so I feel like I have a decent understanding of personal finance.

    I tend not to tie up tons of cash in cars. It’s just my personal preference. As an example, I can pay $300K for a vacation rental (I am in that business) that will easily net me $40-45K a year. If i sunk it into a car, it would make me nothing.

    Putting cash in a car is like putting it in your personal residence: The money is “dead” and no longer working for anything.

    Any time I can borrow money for 4% or less, I will take as much as they will lend, for as long as they will lend it, and try to deploy it in things that make money. I keep a lot of cash for things like COVID, “powder in the keg” deal. I don’t want the money in the garage leaking oil.
     
  10. psych0hans

    psych0hans Karting

    Jan 12, 2020
    53
    Bombay, India
    Definitely a very valid point. This is the same thing I was trying to explain to my wife, that as long as the APR is low enough, it actually makes MORE sense to finance, than to pay cash.


    Sent from my iPhone using FerrariChat.com mobile app
     
  11. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,788
    western hemisphere
    If your assets are deployed to make more money, it does make a lot of sense, if you see the world this way. We are all trained from a young age that “you work for money.” But it is possible to ultimately flip the table so that it’s your money that is working for money instead of you.
     
  12. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,788
    western hemisphere
    I found a local credit union that offered 2.5% for 60 months. Not quite free money but close. I'll take it, thank you. :D
     
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  13. 09Scuderia

    09Scuderia Formula 3

    Nov 20, 2011
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    Max
    VRBO type rentals are going to be gutted...hope you aren't over leveraged....

     
  14. henryr

    henryr Two Time F1 World Champ
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    Nov 10, 2003
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    Juan Sánchez Villa-L
    any links to Airbnb blows ups? i like to read those
     
  15. Husker

    Husker F1 World Champ

    Dec 31, 2003
    11,788
    western hemisphere
    you must not be following the Gatlinburg TN market. Never been better.
     

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