Financing 500k for a car. Which lender | Page 2 | FerrariChat

Financing 500k for a car. Which lender

Discussion in 'Ferrari Discussion (not model specific)' started by Ascend, May 9, 2021.

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  1. Thecadster

    Thecadster F1 Veteran
    Rossa Subscribed

    Apr 27, 2017
    6,702
    If you are looking at a $800-900,000 car, most likely that car is with a dealer. That same dealer can likely point you in the direction of financing. Years ago, my buddy told me about an acquaintance of his who took a $900,000 loan on a Bugatti through Wells. I would imagine that all the big banks would do big loans at good terms depending on credit profile, financial wherewithal, DTI, and collateral value.

    My advice would be to pursue as low an interest rate as possible. After all, money is essentially free right now. Check out the 1 Month LIBOR historical chart:

    https://www.moneycafe.com/1-month-libor/
     
  2. SGM

    SGM F1 Rookie
    Owner Silver Subscribed

    Sep 27, 2006
    2,790
    Northern VA
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    Steve
    Depends on what state you live in. I just received a quote from Premier last week and because I live in Virginia I would have to pay the 4% sales tax up front.
     
  3. Nospinzone

    Nospinzone F1 Veteran

    Jul 1, 2013
    7,346
    Weston, MA
    Full Name:
    Paul
    A possible advantage to this is you can negotiate a better purchase price because the dealer will make money on the financing.
     
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  4. Scott Holliday

    Aug 28, 2020
    29
    Houston, TX
    Full Name:
    Scott Holliday
    Yes sir.
     
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  5. dgoldenz94

    dgoldenz94 Formula Junior

    Apr 13, 2020
    542
    Las Vegas
    Full Name:
    David Gold
    It’s been a good 6 months for crypto =)
     
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  6. plastique999

    plastique999 F1 Veteran
    Owner Silver Subscribed

    Nov 9, 2008
    8,539
    SoCal
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    Edward
    Really? …that’s crazy!
    Thought the point a lease is to not pay sales tax up front….
    Are closed end leases in VA requiring sales tax up front ?


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  7. dgoldenz94

    dgoldenz94 Formula Junior

    Apr 13, 2020
    542
    Las Vegas
    Full Name:
    David Gold
    Texas requires sales tax to be paid on the price of the whole car up front too for a lease
     
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  8. gilly6993

    gilly6993 Formula 3

    Aug 20, 2009
    2,475
    Longmeadow, MA
    Full Name:
    Eric
    Essentially borrowing cash on margin and loaning money to yourself. Rates can be very cheap.

    For instance. I bought a piece of commercial real estate on margin. All cash purchase 1.6% fixed rate on margin and with the interest tracing laws it’s all deductible

    If you have a healthy brokerage account this is the best way to borrow money. Obviously with some risk but if you keep the amount borrowed low compared to assets relatively safe


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  9. SGM

    SGM F1 Rookie
    Owner Silver Subscribed

    Sep 27, 2006
    2,790
    Northern VA
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    Steve
    Virginia sucks when it comes to taxes and I didn't ask about a closed end lease.
     
  10. CoreyNJ

    CoreyNJ Formula 3
    Silver Subscribed

    Apr 17, 2006
    2,002
    New Jersey Shore
    Didn't you say 4%, if that sucks, those of us in states like NJ, NY, IL and CA with higher level sales taxes must be really getting the shaft...
    Image Unavailable, Please Login
     
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  11. SGM

    SGM F1 Rookie
    Owner Silver Subscribed

    Sep 27, 2006
    2,790
    Northern VA
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    Steve
    4.15 to be exact. I know that several states are higher but I did not know that when I started looking into a lease vs purchase this time that the sales tax had to be paid upfront, I had thought that with a lease the tax was paid on the lease amount not the entire cost of the car. I asked Premier do a rough estimate and get a ball park number for a 160k lease and they came up with roughly 2k a month with 13k due at inception.
     
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  12. FerrariCognoscenti

    FerrariCognoscenti Formula 3

    Jan 19, 2021
    2,429
    East Coast
    It’s not just sales tax. Virginia charges 5.75% property tax (higher or lower depending on county/city) on the full value EVERY YEAR. in CA, NY etc you pay a high sales tax once. In Virginia you p pay every year. The most communist state In the country.


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  13. plastique999

    plastique999 F1 Veteran
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    Nov 9, 2008
    8,539
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    Edward
    You got to be kidding me!


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  14. FerrariCognoscenti

    FerrariCognoscenti Formula 3

    Jan 19, 2021
    2,429
    East Coast
    I wish I was.

    People in NY and CA have no idea how good they have it. If I still lived in VA I would be paying about $11k a year in PROPERTY TAX on my 458. Between my 458, my Bentley GT, and Range Rover I would be paying close to $30k/yr in property tax that is racked onto your home’s property tax. The state is insane. No one in their right mind with money would ever live here.


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  15. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    Crazy! It’s racketeering !


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  16. plastique999

    plastique999 F1 Veteran
    Owner Silver Subscribed

    Nov 9, 2008
    8,539
    SoCal
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    Edward
    So VA claims this tax on your vehicle every year under “property tax?”
    First time I’ve heard of this, unbelievable!
    Does VA tax all other acquisitions such as boats or planes every year?


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  17. FerrariCognoscenti

    FerrariCognoscenti Formula 3

    Jan 19, 2021
    2,429
    East Coast
    Yes, in addition to sales tax, in VA all vehicles (cars, boats, planes) are taxed as property tax the same as your house. It is sickening and why people are leaving this god forsaken state en masse.

    For some reason VA has the reputation of being a red state and part of the deep south...this couldn’t be further from the truth. It is more backwards in terms of taxation than virtually any other state in the union.


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  18. SGM

    SGM F1 Rookie
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    Sep 27, 2006
    2,790
    Northern VA
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    Steve
    And this is why you see a lot of Montana tags at Cars & Coffee events in Virginia
     
  19. paulchua

    paulchua Cat Herder
    Lifetime Rossa Owner

    Jul 1, 2013
    15,978
    Menlo Park, CA
    Full Name:
    Paul Chua
    wow, never knew about this - that's wild.
     
  20. c8spidey

    c8spidey Formula Junior

    Dec 10, 2018
    598
    westchester county ny
    Full Name:
    lou g
    Never knew that---what % of all that tax is deductible?
     
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  21. henryr

    henryr Two Time F1 World Champ
    Silver Subscribed

    Nov 10, 2003
    21,648
    Atlanta
    Full Name:
    Juan Sánchez Villa-L
    that is free money
     
  22. plastique999

    plastique999 F1 Veteran
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    Nov 9, 2008
    8,539
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    Edward
    Well I thought CA was bad but VA seems way worse!


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  23. LARRYH

    LARRYH F1 Veteran
    Owner Rossa Subscribed

    Jun 3, 2011
    9,142
    virginia usa
    most parts of Virginia do not charge personal property tax on boats thanks to our healthy boating industry .. they have a cap of sales tax on boats at around $3000 or $4000.. Now on cars they have a tax they call personal property tax and it is based on the accessed value of any car under 25 years old and it gets billed every year each county sets its own Personal property tax rate... but around 3 to maybe 5% is about right. that's based on the current market value..
    I am not sure about planes ...IF you had your company in Va they would tax you on your office equipment every year etc...
    I do see a lot of out of state tags in VA....
     
  24. FerrariCognoscenti

    FerrariCognoscenti Formula 3

    Jan 19, 2021
    2,429
    East Coast
    None anymore since the SALT exemption went away.


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  25. sokoloka

    sokoloka Karting
    Rossa Subscribed

    Jul 27, 2011
    66
    Southern California
    Argh I know the feeling.
     

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