Ferrari Financial Services - Balloon Financing | Page 4 | FerrariChat

Ferrari Financial Services - Balloon Financing

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

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  1. Cigarzman

    Cigarzman F1 Veteran
    Owner Rossa Subscribed


    I couldn’t agree more. Exactly what I said. The OP needs to understand we are speaking from experience not hypotheticals. My
    F8 spider came in around 345 nicely spec’ed and I will loose 30-35k per year of value. A 415 k car will loose even more for sure.
    OP , I’m not trying to be a Debbie downer but this is the reality of this car. All of us here want you to have a great experience like we have but do not want you to finance with unreal expectations . Knowledge is power. Best ,Kirk.
     
  2. tbuff

    tbuff Formula Junior

    May 15, 2005
    681
    Question. For those with the balloon at the end is the point to sell it and make the final payment? Therefore the sunk cost is the initial dp plus monthly?

    Also where is the obligatory 'only pay cash for toys' post?
     
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  3. italiafan

    italiafan F1 World Champ
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    Jul 19, 2006
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    Only pay cash for toys.
     
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  4. italiafan

    italiafan F1 World Champ
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    Stickbones Swagglesmith
    I’m going to go out on a limb here and postulate you are sitting in a beach chair right now on Longboat Key with a cigar in your hand. Am I right?
     
  5. Cigarzman

    Cigarzman F1 Veteran
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    Rob , that was yesterday. Today I’m poolside at home typing right now with a lit cigar. So Rob ...... you’re close but NO cigar. Lol.
     
  6. italiafan

    italiafan F1 World Champ
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    Stickbones Swagglesmith
    :D
     
  7. italiafan

    italiafan F1 World Champ
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    So I guess this means you have finished your renovation? LOL

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  8. plastique999

    plastique999 F1 Veteran
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    Nov 9, 2008
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    Edward
    I’d venture to say most of us don’t keep the car on a 5 year lease/finance. So we end up trading/selling the car prior to term and never see the balloon payment at the end. I have paid out on only 1 car out of 20+.
    So the idea is get as high of a balloon (residual) as possible.


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  9. tbuff

    tbuff Formula Junior

    May 15, 2005
    681
    I still don't get it but I won't hijack this thread further. Have to do some reading.
     
  10. plastique999

    plastique999 F1 Veteran
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    Not sure how FF does it (but assume the same as the others), but Putnam and Premier provide open ended leasing of which all the numbers are openly sent to you immediately - you pick the down, they will provide monthly, amortization schedule and balloon. The balloon is somewhat negotiable. I’ve negotiated a few balloons with them, asking them for a better residual to lower the monthly. As someone previously mentioned, $10k effects the monthly by $100.... so for example, let’s say you put in $10k down and your monthly is $2k with a residual of $60k. Let’s say you want a monthly of $1900. You can either add $10k to your down for a total of $20k, or see if they will raise the residual $10k to $70k.


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  11. IloveGT

    IloveGT Formula 3
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    Oct 17, 2015
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    exactly with the watch! lol
     
  12. rob lay

    rob lay Administrator
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    Dec 1, 2000
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    You'll lose at least $125k in 3 years between interest and depreciation. You might get a little back by financing if your portfolio ROI is higher than the loan on the $290k instead of paying cash.

    There are Ferraris you can buy that won't lose very much at all if you time it right, a new Ferrari is not one of those.
     
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  13. Headsuppassinglft

    Dec 24, 2020
    80
    Addison, TX
    Full Name:
    Christine Fritsch
    Oh thank god. That will be me. I'm trading in my F8 in a year or so for my SF90 and I'll have about 5 thousand miles on it. The MSRP was 335 and I was hoping for 300. I'm coming from McLaren's and have no idea how well Ferrari's hold their value. I've heard they hold their value well.
     
  14. Cigarzman

    Cigarzman F1 Veteran
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    Good luck with that , although, hope springs eternal.
     
  15. SoCal to az

    SoCal to az F1 World Champ
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    Nov 25, 2012
    14,209
    Arizona
    Oh yeah. Ferraris hold value very well. Especially the 488. Come to think of it, the 812 actually went up in price. Same with Lusso and Calis. All those Ferraris appreciate.
     
  16. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    Specially the Lusso;)


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  17. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    +10000
    PFS go as high as 50% residual on F-cars usually but recently been disappointed by their quotes.


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  18. m3doc

    m3doc Karting
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    Oct 22, 2008
    137
    Is there typically an early termination fee or other financial penalty for trading/selling prior to term?
     
  19. vonbeeler

    vonbeeler Formula Junior
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    Jul 28, 2012
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    Mike
    No.
    Only depreciation could make you slightly upside down in short term 18-24mo.
    The longer you go the less likely to be.



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  20. plastique999

    plastique999 F1 Veteran
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    Well actually yes... in the contract if you terminate early (which I’ve done nearly every car) I believe there is a one month fee loss. They also collect first and last month rent up front.
    The thing to know is if you look at their amortization schedule, the interest is front loaded (you can have your CPA review the amortization). In other words, if you trade in a car say after 3 months (which I’ve done before - traded my AM V8V for my first F car, 430 spider) you’ve screwed yourself by paying mostly interest on these early payments. It evens out better if you keep the car for around 2 years or longer, where you’re paying more principal at this point.


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  21. carz80am

    carz80am Formula Junior

    Sep 23, 2015
    620
    Northern Virginia/DC
    No one knows what the value will be in 1,2,3 years. In the last year, many cars have increased in value with demand high and low inventory. Even boats have gone up with inventory issues and boats always lose money. With inflation, who knows what the value will be. If your going to finance, I would do the regular financing vs the balloon, but that's just a personal preference.
     
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  22. vonbeeler

    vonbeeler Formula Junior
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    Jul 28, 2012
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    The entire advantage of balloon/lease is your not paying all the sales tax up front. You only pay sales tax for the time you’ve used it. So
    If you trade after a few months you saved $20k in sales tax on a $250k car. If you need a CPA to review an amortization not sure you should be buying a 250k car:). Interest is always higher in the early stages lease loan or whatever.


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  23. Natkingcolebasket69

    Natkingcolebasket69 F1 World Champ

    2 months worth of ur lease if in year 1 or 1 month after year one same for PfS or Putnam


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  24. plastique999

    plastique999 F1 Veteran
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    This is a given


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  25. plastique999

    plastique999 F1 Veteran
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    Thanks for clarifying


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