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Ferrari Financial Services - Balloon Financing

Discussion in '458 Italia/488/F8' started by harrish1985, Mar 11, 2021.

  1. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    Exactly —-1700 a month is not likely.


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  3. mkraft3003

    mkraft3003 Formula Junior

    Aug 20, 2016
    537
    Tampa, Fl
    They are not. Call your dealer and you will see. The rate is 3.74 and 60% on a f8 spider. This is the current and correct info.
     
  4. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    60% balloon on a car that won’t be worth 260k in 5 years?


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  5. mkraft3003

    mkraft3003 Formula Junior

    Aug 20, 2016
    537
    Tampa, Fl
    You may want to actually call your dealer before you claim something is not correct. He is putting down 125k.
     
  6. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    Already did. He is still financing 300+


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  8. mkraft3003

    mkraft3003 Formula Junior

    Aug 20, 2016
    537
    Tampa, Fl
    Set by FFS.
     
  9. mkraft3003

    mkraft3003 Formula Junior

    Aug 20, 2016
    537
    Tampa, Fl
    Exactly and you have a single lump sum balloon payment that is owed at the end is 258k.
     
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  10. Divexxtreme

    Divexxtreme Karting

    Aug 14, 2020
    125
    Full Name:
    Scott
    Well, heck. Had I known I could have decreased my payment by $1,700 per month by simply putting another $35k down in order to bring my financing cost to $305k instead of $340k, I would have done it!

    Kidding, of course. I asked. It would have been around $3.1k per month instead.
     
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  11. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    Well did you put 85k down? Bc apparently OP is putting 120k down


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  13. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
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    That’s the number I was given too


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  14. harrish1985

    harrish1985 Karting

    Jun 17, 2016
    79
    NJ & FL
    4.98% seems high. I may just go the traditional 72 or 84 month route with any bank that can get me rate in the low to mid 3% range.
     
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  15. Divexxtreme

    Divexxtreme Karting

    Aug 14, 2020
    125
    Full Name:
    Scott
    I'm just comparing what I financed to what he intends on financing. I financed $340k and I pay $3,450. At $305k it would have been $3,150. I went through a few different scenarios with my dealer.
     
  16. harrish1985

    harrish1985 Karting

    Jun 17, 2016
    79
    NJ & FL
    Do you mind if I ask what was your total build and how much you put down? Why did you choose balloon financing versus traditional financing perhaps longer term or same term with lower interest rate?
     
  17. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    What’s your final payment?


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  18. Divexxtreme

    Divexxtreme Karting

    Aug 14, 2020
    125
    Full Name:
    Scott
    I'll have to check later. Paperwork is at home and don't remember the exact figure.
     
  19. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    Any how your payment seems in line with what I was quoted


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  20. Divexxtreme

    Divexxtreme Karting

    Aug 14, 2020
    125
    Full Name:
    Scott
    Total build cost was $350k. I ended up putting put $10k down. I had originally intended on putting significantly more down, but for every $10k increase in my down payment, the monthly payment only decreased by $100 or so. Therefore, I ended up only putting $10k down, vice blowing my cash on my super-fun depreciating asset. I have good cash flow coming in, so the monthly payment isn't much of a problem.

    As far as the Balloon reasons, I like the proportionally low payment, and also the idea of not having a $340k loan show up on my credit. I want to buy more real-estate, and because Ferrari Financial doesn't report anything to the credit bureaus, using them helps mitigate any issues with that.

    It may not be the best decision for you, but it works for me.
     
  21. harrish1985

    harrish1985 Karting

    Jun 17, 2016
    79
    NJ & FL
    This is very helpful. Thank you Scott!
     
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  22. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    PS:I don’t think their leases show on credit too


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  23. Condor Man

    Condor Man F1 Rookie

    Sep 8, 2006
    2,840
    Los Angeles
    They won’t allow such a balloon on a used car.

    Also they have two balloon number depending on if the car currently has over 2,000 miles.


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  24. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    Agreed with you!


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  25. Autolove

    Autolove Karting

    Jun 8, 2012
    221
    S.A. TX.
    Full Name:
    Ivan
    This
    is exactly correct!
     
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  26. mkraft3003

    mkraft3003 Formula Junior

    Aug 20, 2016
    537
    Tampa, Fl
    #48 mkraft3003, Mar 12, 2021
    Last edited by a moderator: Mar 12, 2021
    I’m not sure you entirely understand balloon financing. You are not paying interest on the entire amount. You are paying interest on the 59 payments and you have a lump sum payment due at the end. If you do a simple google search on balloon mortgages or balloon financing it will be clear. The entire purpose of balloon financing is to have substantially lower monthly payments. The risk is you have a large lump sum at the end. Hope this helps.


    What is a balloon payment?
    A balloon payment is an installment payment due at the end of a loan term. Such loans don’t amortize at the end of the term, but rather have a larger-than-usual payment required at the end. Borrowers with a balloon-payment loan make smaller monthly payments over the course of the loan until the balloon payment is due.

    Deeper definition
    For a conventional loan, payments are made every month until the last payment is due, and that last payment is virtually equivalent to every other payment. This is called amortization, and every payment can be calculated on the basis of the amortization schedule.

    With a balloon payment loan, the borrower agrees that at the end of the loan term, the remaining balance will be a large lump sum rather than just another monthly payment. Because that unpaid balance wasn’t originally spread across loan term, the monthly payments end up being somewhat smaller until it comes time to make the balloon payment.
     
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  27. Natkingcolebasket69

    Natkingcolebasket69 F1 Veteran
    Rossa Subscribed

    #49 Natkingcolebasket69, Mar 13, 2021
    Last edited: Mar 13, 2021
    I completely do understand and I believe you.
    Anyhow a 268k residual on a 5 year old f8 is the best way to be upside down... Can’t find many 2016 488 offered at 268k so better not drive the car not to be down by like 30-40k.
    Leasing would be my way to go.

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  28. mkraft3003

    mkraft3003 Formula Junior

    Aug 20, 2016
    537
    Tampa, Fl
    I agree with you!!
     

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