Financing for 458, running into roadblocks, looking for options

I’d say you likely need more money. I wouldn’t finance more than my annual salary on anything but a house.

That aside… Have you looked at lightstream? They only loan up to 100k but it’s a personal loan so you get the cash. Bridge the rest with Woodside. Other options would be Margin loan on Brokerage investments. But seriously that’s a lot of money against less income without knowing more of your financial picture.

 

Am I reading this correctly, you are applying for a 15 year car loan?

 

I thought the above posts were helpful.

 

Yep.

 

I hope you have a lot more in passive non salary income or assets. The moment your 10 year old car breaks, you will not be able to afford fixing it. It’s not worth being car poor.


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Curious as to who has you at a credit score of 875?

And if your house is worth $260K and you’re considering a 15 year auto loan with total interest payments in the $140K range why not just leverage your house to buy the car?

I’m not saying this is smart but to be honest neither is a 15 year loan to buy a car.


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No hard feelings…. Sometimes you need the ******* to deliver reality. It’s your money… I hope you get to join the club sometime. But nothing in the numbers you posted makes good financial sense to me. You asked for advice that’s mine.

 

The best time to start doing the opposite of the above is ... ... never!

There's nothing wrong with indulging and rewarding yourself -- life is short -- but these cars are not inexpensive to maintain, or repair if something goes wrong, and you are ignoring that in your math.

The math in the prior post is helpful -- at 8.25%, over 15 years, you will be paying a total $331k, plus significant maintenance/repair/insurance costs on top of that, for a car that might be worth only $100k or less by the time you pay it off. This is a very bad investment (huge financial loss) and (presumably) you haven't left any funds for putting into a retirement account. Look for a car that will be either an investment or at least that won't depreciate like crazy, on top of your interest expenses.

I think we all admire your mission, but it is overreaching. Why do you need a 458? Start with something like a 360 -- which can be had for about $80k, and will depreciate very little while you own it.

 

This is very good advice. God forbid you get laid off or are out of work for 6 months. It appears you are stretching yourself beyond what is reasonable. A 15 year loan on a car is really a bad business decision and as aero pointed out you’re paying 140k in interest alone. As others pointed out it’s not worth being car poor just to own a Ferrari. All kidding aside, maybe rent one for a few weeks out of the year to scratch the itch until it becomes more reasonable. Just my .02

 

If you find a car you like at an authorized Ferrari dealer, their in-house financing (FFS) offers multiple options including zero down as well as balloon. If you want to keep the car, forget leasing.

Example: 225, zero down, 124 balloon (55% of initial price), 7% APR, 60 month is about $2725/month and with FFS you can convert to a standard retail contract at the end of the note, etc...

 

You can't post this question anywhere without getting the questioning comments you've received. Nobody is trying to be a jerk, everybody is trying to help and be constructive. It does seem like you have thought things out more than most, and I hope you will stay on the forum and hopefully get constructive advice to make it happen.

I don't have any suggestions to get financing done beyond what has already been suggested, and I won't make any further comments discouraging your pursuit. I do have one question, though. Why stretch financially to buy a Ferrari model that is so high on the depreciation curve? There are many other models that have already fully depreciated (like the 360) and that would likely retain most or all of its value, and maybe even gain a bit of value over time. The 458 is going to depreciate a lot over the next few years -- there is no question about that -- it just does not seem like the right place to sink financially stretched dollars.

 

However, Ferrari is going all in on hybrid and the electric-only (probably some sort of truck at first), the only thing certain is the 458 (and 458 Speciale) are the final unassisted V8 models Ferrari will likely ever make (unless there are dramatic and currently unforeseen regulatory changes in the long term as well as management decisions).

How far will the 458 depreciate from here? Could it appreciate? All I know for certain is the 458 was the final unassisted V8 and it happens to be a very different car than the 360. The only reason to go for a 360 or 430 is the manual transmission option, and, the OP has not mentioned looking at any other model, so probably little interest in earlier models is what I presume.

And when you consider the thoughts of YOLO, why wait for some future depreciation that may or may not occur...

 

Every model in the mid-engine V8 series, going back almost 50 years to the first 308, has depreciated pretty hard after a few years. The oldest of the V8 series (308, 328) have only now finally begun appreciating, 35 to 45+ years after they came out, but I believe that appreciation is in large part due to the rawness of those old cars making them attractive, and the simplicity of those models making them maintainable.

You bring up an excellent point about the 458 being the end of the naturally aspirated, non-hybrid era -- so that could cause it to buck the depreciation trend or maybe even appreciate -- but nearly 50 years of history of significant depreciation in every single model is difficult to ignore. It's also difficult to predict how maintaining a complicated car like the for 458 will age over time. If it's discretionary dollars, it's easy to roll the dice and see whether it appreciates or depreciates. With stretched dollars, betting on breaking a half-century trend doesn't seem like the obvious choice.

 

I hear you, but with confirmed EU regulations requiring the elimination of combustion engines, I believe the most recent models will benefit from the elimination of the typical depreciation route.

Here is a 'for instance', in October 2017 a 1000 mile 2015 458Italia was having a very hard time be sold at 205K...now, that same car about have no problem selling at 250K or more...and, of course, the 458Speciale has had a remarkable increase over the past 3 years, from a bottom of 280K to a bottom of 480K (or so)...

 

A lot of cars have come up significantly in value over the last few years -- it's been more of a market trend than an individual car trend. That said, I do think you have a valid point -- and I hadn't really thought about that "last of the breed" factor before you raised it -- so we'll see where the market goes. I wouldn't be surprised if you are right, and I wouldn't be surprised if I was right -- but that "tossup" factor is still why it doesn't seem the best choice for stretched dollars. None of this is meant to discourage the OP in whatever he decides to do, just food for thought.

 

You were the one who spilled all the beans on your financial situation. 15 year loan? Paying $141k in interest? You can't afford this, and some smart people wealthier than you and I put together have kindly offered smart advice.

We make similar money and you have a better credit score and mortgage situation......but I own 2 exotics (Lamborghini Diablo Roadster and Ford GT), and paid cash for both. How? I saved the money so I could REALLY afford the purchase. It took 9 years for the first one and 6 years for the 2nd.

Take the time, enjoy the journey.

 

This is a gem of a thread! As a guy in “the club” I would politely suggest going to a 360 or 430. Join the club, but join it in a tenable manner.

 

That's your FICO score today. What happens to it when this albatross of a car payment is hung around your neck? Then, let's play the long game.... you want to buy another house, a rental property, or need a new daily driver. How does a revised credit score affect the purchase price of those?

Personally, I wouldn't do it.