Benefits of Financing with Ferrari? Misc Advise

I financed with Ferrari because my dealer gave me a better price by using them, all they wanted me to do is keep my account open for 6 months. I paid down 95% in month 1 and will pay it all off by month 7.

If your dealer will reduce price or give you some other incentive for using Ferrari financial, it could be worth it.

 

Starting in 2024, FFS does count in your file with Ferrari.

 

This example has nothing to do with FFS… what you were ‘sold’ was based on the finance manager’s pay plan… in this case, the finance manager or sales desk quoted you a rate in which they are making 1-2 points. They asked that you didn’t pay it off for at least 6 months because of 3 things:

1. They are making rate on you which equated to a large amount of money in the backend so therefore they ‘gave’ you a better price. Lower price + bank reserve profit = more profit than higher selling price.

2. If you pay totally off within 6 payments, almost all banks charge a small processing or administrative fee (basically an excuse for not making any interest on you) and they probably used that as a good reason for you to not pay it off so quickly and then probably gave you the good idea of paying almost all of it in first month so that interest on your tiny 5% is basically nothing anyway (good advice actually) … and then just let the small balance trickle down to zero on autopay.

And 3. The finance manager’s payplan has a chargeback policy for products and reserve and it SURELY states that he’ll only be charged back reserve for 6 months. Most banks don’t chargeback the dealer after 90-120 days so finance guy is safe after that but FFS may very well chargeback for longer but guarantee that the finance guy’s chargeback is only for 6 months. So if they made 5k, 10k, 20k in rate (reserve), then he won’t get charged back his % of that.

If you paid the car cash at the higher price, everyone would’ve made less money.

Final point. It IS actually a win win situation though. You having a lower principal balance is obviously better for you and paying it the way you said results in negligible interest and the dealer makes more money so— that’s the real reason you got ‘offered’ a better price


Sent from my iPhone using FerrariChat

 

Thank you for the explanation, but I don't want to allude that the dealer was trying to "scam" anyone, most of it was my idea.

After some back and forth I asked him if he could get to my price if I agreed to use ffs, he said yes, and did. My plan was always to pay it all off after month one, but when I mentioned that to him, he asked me nicely if I could please keep the account open for at least 6 months and I agreed.

I just don't want people to think that dealer is trying to convince customers to do this.

 

No, I didn’t think scammy at all— just explaining why they gave better price and also asked that you didn’t pay off before 6 payments… it’s a win win.

I’ve been a finance manager/director in car dealerships for 27 years so just giving a little info.

Sent from my iPhone using FerrariChat

 

arent you finance manager for KIA?

 

Still in the finance biz?

 

Same story with me. Used Ferrari Financial to finance my F8... Paid it off a few months later but it was convienient.
Pretty easy to work with but the interest rate was astronamical compared to credit unions out there.

 

love your videos btw! do you mind sharing what was the interest rate they quoted you? i am also using ffs

 

My car is financed thru Ferrari’s bank, I like it for 3 reasons: reasonable rates, being part of the extended Ferrari family (meaning building a stronger relationship with the brand + may be a better relationship when it comes to select other models for example) + it does not show up on a credit report (almost no debt here but no reporting means I keep the full power if I need to get a loan for something else). Compare rates first and see if those reasons are advantageous for you.

 

yes... and poker still.... I must be a masochist.

 

As of 2024, Ferrari adds points to your profile for using FFS. Up till now they did not but to encourage clients to use it they are giving some points towards the profile but no one can tell you how many or what type of points and what value they will serve in your profile for future cars allocations etc...

Ferrari's entire ranking system used for their clients is not well known by any clients even if they are top tier, VIP, etc... not even dealerships managers salesman etc.... even know. I know VIPs that got invited to purchase cars like the Monza, SP3 as well as Top tier who almost always get them and then some top tiers that were not invited for the XX model. Its clear that their ranking system is so secretive that even those in the know, don't know.