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First Time Financing An Exotic And Got Denied...Help Please

Discussion in 'Other Off Topic Forum' started by F355 Fan 82, Nov 19, 2016.

  1. F355 Fan 82

    F355 Fan 82 F1 Veteran
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    Jul 22, 2006
    5,965
    Ok so basically, I have the cash, but Im holding onto some pretty good gains in the stock market and I don't really want to cash out a pretty large position I've had in Starbucks for 10+ years just bc its near its 52 week low right now. I have a good job, income is well over 6 figures, I have no debt at all either.

    The problem, I bank with chase, actually in their private client group too, anyways they don't finance cars that old, Im seeking to buy a 2003 996 Porsche GT2, it for sale for $145k. Obviously I will be putting down cash, but I'd like to have my cash outlay be as minimal as possible. Anyways I applied at woodside credit and got declined, I asked why and was told well you dont have any big loans in the past and thats understandable but I've never financed a car. I have leased 3 different ones and am currently leasing my daily driver now pay $530/mo.

    I have 2 credit cards in my name from chase, $20,000 limit on each, I pay off the bills on both every month and my credit is 805.

    I don't rent or own a home personally, Im 34, but Ive been fortunate to have gracious parents who bought a townhome for me years back when I finished grad school and its not in my name but I do not have any bills

    So after talking to woodside and having them decline me, even if I wanted to 50% down, what options would I have to look into. I would like to buy the vehicle, but if its not meant to be, its not meant to be for now and the car of my dreams finally appeared next to me and Im trying to figure out how to make it happen
     
  2. sburke

    sburke Formula 3

    Dec 21, 2010
    1,239
    Lake Norman, NC
    Try a credit union.

    They will most likely have a 100k cap though on something that old.
     
  3. F355 Fan 82

    F355 Fan 82 F1 Veteran
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    Jul 22, 2006
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    #3 F355 Fan 82, Nov 19, 2016
    Last edited: Nov 19, 2016
    but when people talk about building credit. Is having $40,000 in credit card limits always paid off every month along with a couple leased cars with no missed payments not enough? What type of credit is a place like woodside credit looking for? Hell I've even got $12,000 care credit I borrowed at 0% and paid off to pay for the wife's breast augmentation on my name. I've just never had a missed or late payment on either card or any leased car and I was shocked I got declined, just trying to understand what I need to do to be able to get approved by someone like that in the future also do lease payments not show up on your credit report? They damn sure would if you didn't pay! I guess Im surprised that even if I put 50% down woodside was going to decline me bc of my "history"
     
  4. John_K_348

    John_K_348 F1 Rookie

    Sep 20, 2013
    2,658
    Boston, MA
    Full Name:
    John E. Kenney
    Hmm, an odd situation. I have about 40K in a loan on my 360 since July. I made a down payment over over 60k so that helped but my credit check came back good and Igot a decent rate at about 5%. Plenty in my brokerage account and I have to decide when to cash out and pay it off now according to plan. I've had a bunch of other expenses so cash is getting low but I may have good gains ahead in the next year after the election. Dividend yields are good too so it's almost a no brainer. I could let it ride for almost a year I think but probably won't. Good luck. It seems like they would rather have you buy it outright and just avoid the risk entirely. It's almost not a question of credit at all.
     
  5. tantumaude

    tantumaude Formula Junior
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    Mar 3, 2016
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    Burlington, Canada
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    Mat
    My $0.02:

    There are two elements that come into play when seeking a loan: creditworthiness and security/collateral. You seem to have a very good hand on the first, but nothing at all on the second (leased car, no property to your name, very little cash on hand), which presents a risk to the lender in terms of recovering if you default. The part about no big loans in the past won't help either.

    Especially on an older car with uncertain (to a lender) value, it's harder to get a loan. My suggestion would be to get an unsecured line of credit or personal loan, without any direct reference to buying a car. You'll pay a bit more in interest, but it'll be easier to get. The only issue is that most banks have a cap on LoCs--you may be able to go to two different lenders to get the requisite amount.

    Did the lender know about your stock holdings? If not, they would consider your net asset worth to be zero.
     
  6. cheesey

    cheesey Formula 3

    Jun 23, 2011
    1,921
    your bank contact knows little to nothing about car financing, he there as a token employee... speak to someone that is knowledgeable and has authority...and knows what they are doing... especially disappointing when this comes from a bank section catering to their better clients

    bank employee is using retail current production guidelines and trying to apply to your situation... this kind of BS has been going on in banks since day 1.... when dealing with uninformed bank employees

    your transaction should be a no brainer at any bank, when talking to the proper employee

    since you are interested in a Porsche product, try contacting Porsche Finance, they have a section that deals with collector and preowned specialty cars... they are actively soliciting this kind of business... Hagerty and other classic /collector car insurers offer financing...

    there are many sources to find financing, in the event Chase doesn't come around... (assuming no credit issues )
     
  7. F355 Fan 82

    F355 Fan 82 F1 Veteran
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    Jul 22, 2006
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    tantumaude, where did I say no cash on hand? I said im in the chase private client branch, you have to maintain $250,000+ to be in there. I have the money, I have money in stocks too, I just dont want to pay cash for the car bc of where my investments are and then I need the cash in bank to maintain my private client status. I said I'd like to buy it with minimal cash outlay and finance it bc I dont mind financing something I feel will appreciate and not depreciate.

    Where Im getting frustrated is I've done everything right which is have a high credit score over 800, paid all my credit cards on time, and the 1 installment I've ever had care credit was paid on time as well. The only reason I even did the care credit was to build my credit profile bc I was still 28 at the time.

    Anyways Im trying to see how for the future to build my credit to be wherever someone like woodside wants it. Is it multiple smaller car loan? I've just leased bc I dont mind paying $500/mo to drive a new car, I don't want to buy it and be stuck with it when the lease is up and the payments are low and I figured I'd get something else after.
     
  8. carnutdallas

    carnutdallas Formula Junior
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    Nov 11, 2010
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    Dallas Burbs
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    Rob
    Really, the entire post does not make sense. I stumbled in here looking for a different conversation and read the post. Makes zero sense.

    I have several bankers who fight for my business. The FICO credit score is manipulated by settings the banks choose to use when scoring. According to WF, I am a 737, but Discover has me at 783. On a Mortgage profile, I score 780-800 depending on the bureau. I have 1/10 the cash, but tons of under utilized credit. 3 substantial car loans, lines of credit, etc, etc. I would have to eliminate 2 loans to take on one large car deal, but when comparing me to you, how can you not do it? The number one key: no substantial asset in your name. This the key to all risk assessments. The black hole that the computer models see when calculating your risk #. Personally, I would probably say F it and tell the banks F you. I would never be a Chase client either. Hate most Banks, but use them for my purposes. I really have a hard time with bankers who really cannot make decisions without committee.

    I would look at PenFed. Put good cash down, and finance just under 100k. I would consider moving all my money to a truly small private bank or Credit Union and I would title town house in your name. I know reasons why not to and I get it, but a personal financial statement needs assets as well as cash.

    Woodside ticked me off recently, but did make it right. I would look into JJ Best also.

    A seriously "first world problem" that is not a bad problem to have. I would buy a different car too ;-)


    Sent from my iPhone using Tapatalk
     
  9. exoticcardreamer

    exoticcardreamer Formula Junior

    Dec 9, 2014
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    usa
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    doesitmatter
    Old car and I'm assuming it's above msrp? Generally, lenders won't finance any part above msrp. One issue for you that others haven't talked about


    Sent from my iPhone using Tapatalk
     
  10. 19633500GT

    19633500GT F1 Veteran
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    Nov 9, 2010
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    Ken S
    Lighstream would likely pick you up.
     
  11. Face76

    Face76 F1 Veteran
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    Aug 21, 2006
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    M Wilborn
    Credit cards where you pay the balance each month really aren't credit cards, they're cash advance interest free loans. Borrow a **** load of money and pay it back over time. They should notice that. That's credit.

    Can you move the SBUX stock into an account which the bank can use as collateral? I did that once on a restaurant start-up a long time ago. Put it in their trust department and had them put conditions on its use. They view this as loaning money with 100% collateral at the time.
     
  12. Aedo

    Aedo F1 Rookie

    Feb 22, 2006
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    Steve
    Don't think anyone has put enough weight on having a property loan. That is the number one criteria that demonstrates long term commitment - proves a substantial asset - and reduces flight risk. I'm sure you've seen all the loan sharks willing to provide cash to those struggling with debt "put them all into one payment" etc... the small print on all of those is simple... if you have a home loan they will give you money.
     
  13. Ferrarimondial348

    Ferrarimondial348 Formula Junior

    Nov 29, 2012
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    Stephen
    +1
     
  14. Cigarzman

    Cigarzman F1 Veteran
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    May 7, 2014
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    Kirk
    You could get an equity line on the town home and the interest should be deductible. Oops , not in your name. My bad.

    Plan B , go to your bank put down enough and tell them you want an interest only payment for 2 years . If you have a strong relationship they will work with you. Best , Kirk
     
  15. spicedriver

    spicedriver Formula 3

    Feb 1, 2011
    1,731
    Better to get a Ferrari. That Porsche will depreciate like crazy.

    Financing is easy. Just go out and get a bunch of unsecured loans. Tell them you're starting a small business, or doing home improvements. Each bank will only lend you so much, so you have to go to several banks. Also, you can apply for a bunch of credit cards. Get the ones with no annual fee, and 0% introductory rate. Don't worry that the introductory rate will expire, because all you have to do is pay off the balance, and they will give you another 0% transfer, and increase your credit limit. It's called credit card surfing. You could actually buy a property with enough credit cards.
     
  16. steve_400i

    steve_400i Rookie

    Aug 15, 2017
    24
    This thread originate last November (9 months or so ago) and the OP has not mentioned actually securing the car or credit.
     
    HeavyFuel likes this.
  17. sliceddeuce

    sliceddeuce Rookie

    Aug 28, 2017
    15
    True...But he did repeatedly use the word "Anyways"..AND financed a boob job.
     
  18. waterking

    waterking Karting
    Rossa Subscribed Owner

    Feb 15, 2011
    211
    Texas
    Exactly. So many people...so many agendas. I want my 90 seconds back that it took me to read the OP's post.
     

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