Institutions That Provide Long-Term Financing

I don't know of any that do.

In my opinion, it would be ridiculous to finance a car for even 5 or 6 years.

In most cases, after a period of time, the car will be worth less than the amount still owed on it.

 

yep!

upside down and buried in debt, The American dream for many.

 

Hey Vik,
Stan Alan Acceptance Corp. will finance up to 15 years. Their phone number is 330-633-0436 X207. Ask for Stan Rosenfeld. I have financed 2 cars in the past and have been happy with their service.

 

I can't imagine wanting to pay $765,897.47 for a $175,000 car.

 

Do they "tote the note" too?

I bet they have to

 

Personally, I would never take a loan on a depreciating purchase.

Unless you can make more through investments(assured), with the funds it would take to buy a car outright, it just doesn't make sense unless you get an interest free loan.

Losing the depreciation + interest when you sell is a double loss.

 

I have to jump in here Darrols -- I've heard this argument so many times it's getting frustrating -- "why finance a toy", "leases are pointless", "don't finance a depreciating asset", etc. etc.

You're simply objecting to the notion of borrowing money..."unless you can get an interest free loan" ... well when is that gonna happen? You have to pay for the right to borrow money, and you're paying for a service -- the flexibility to extend a payment over a number of years, when perhaps one isn't able to willing to plunk down a lump sum at one time.

I'd finance my car for 5, 6, or however many years because for whatever reason, I'd rather pay $2000 / month than put up $120,000 in one shot. Why? Because maybe I don't have $120,000 sitting around. Or maybe I do, and it's doing something better than sitting in a car.

By that logic, why buy a car at all? It's just going to cost you money.....

 

Let me just add to that by telling a story:

I got my first car in college. A 2000 VW Jetta, brand new. Cost was $22,xxx. Did I have that kind of money sitting around? Not even remotely close.

So i leased it -- $328.70 / month. I had a job after college, and I could easily make those payments and be comfortable.

At the end of my 3-year lease, what did I do? I refinanced the balance. Payments dropped to $275 / month. Easy to make that payment, and I still had a great car that I loved. When I finally grew out of the car (this past year), I sold it for the balance of the loan. Ended up nice and clean.

So in the end, did what I do make "sense" ? No, of course not -- I paid way more than the cost of the car over a long period of time. But does that matter to me? Not a bit -- I had a managable payment relative to what I made out of college, I had a car I loved, and when I was done, I sold it and came out even. I could never have afforded to buy the car outright or finance it for 1, 2, or 3 years, so what i did was my only option, and I was (and still am), completely satisfied with the decision.

nlh

 

Ghost-

I bought my 355 on an 8-year loan from JJ Best & Co (www.jjbest.com). They were very nice to deal with and had great customer service, although they usually sell their loans to another bank shortly after they're done. Even though I had outstanding credit, their interest rate gets high quickly as the term goes up.

I bought my Diablo on a 15-year loan from my local BB&T branch. They wouldn't do that on a normal car loan, but I get some special treatment since my business accounts are all there. The rate was very favorable since I gave them my house as secondary collateral (which also makes the interest deductible).

For those that argue the merits of long-term financing, each person's situation is special. In my case, I make a relatively low annual salary but usually get nice year-end bonuses depending on how the company does. As a result, I take high-term loans to keep my monthly commitment low and then pay off big chunks at the end of the year. Even though I had an 8-year note on the 355, I paid it off in 3 years. I expect to do about the same with the Diablo. I do agree with thinking that it is silly to get a long-term loan and actually expect to pay it over the full course of the loan.

 

I would never finance a car to be used as a toy such as a Ferrari. That being said, if you do not have enough cash on hand to pay for a Ferrrai, even if you do intend on financing it, then you should not be buying one IMHO. Ferraris are not for those who are living paycheck to paycheck without the sufficient capital to pay cash for one and have plenty left over...I'm not trying to be snobbish, I'm just stating a fact of exotic car ownership...they are EXPENSIVE to buy, own and maintain. If you have to stretch to buy a Ferrari, what will you do when it needs sevice or repairs? It's just not money wise for everyone. Buy a Vette,Mustang or S2000...they will be faster, more reliable and not send you to bankruptcy court like an Italian exotic can.

 

He already said he could afford to pay cash if he wanted to.

For more of parkerfe's unsolicited and unappreciated opinions, please see every test pipe thread ever on Fchat...

 

You may want to also try Woodside Credit out of Newport Beach, CA. Talk to Mike Moore at 800-717-5180. They work nationally.

 

VIK forgive my high jack here.

FIRST WHAT DAMN CAR ARE YOU CONTEMPLATING? WE NEED TO KNOW, THE SUSPENSE IS KILLING US!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Second, if the return on your investment capital is going to provide for big returns there is no need to be shy with us, please share the investment vehicle with us. We need new Ferraris too or maybe your thinking LAMBO or heaven forbid a P CAR.

 

cgperry, by the way, on the test pipe issue, I hope everyone who has them or are thinking of adding them knows that your insurance carrier can deny coverage due to such an illegal modification in some circumstances. While I recommend against using them altogether, if you want one that bad, I would read your insurance policy carefully to be sure there is not a coverage exclusion for illegal modification contained therein .

 

Bottom line...afford what you can within your means and life will be a bed of roses !

 

Totally agree with Noah...If you have millions in the bank and plunking down a $120 gs cash for a car is no problem, then good for you. Many don't have this kind of cash at hand, so they choose to finance to get what they want. Additionally, some would rather lower their fixed costs with a long term loan so that they can pay back when they see fit, rather than be hooked on for years with a fixed payment.

As Ghost pointed out, if you are fortunate enough to have $100k-$200k lying around, you could generate a 10% (the average annual return on the S+P 500) average annual return by investing it rather than forking it over immediately. Thus, you can earn an average 4-5% on top of paying entirely for the interest expense on the loan - not guaranteed of course, Darolls, but what is 100% guaranteed or free in life? So whatever the circumstance, why spend cash now when you can finance at the current very low interest rates? My credit union is willing to give me a 6 year loan on a F360 at 4.5%, so if I were to have the cash (which I don't ) on hand I could beat you "oh my god the horror of financing" guys by picking up 5.5% a year on principal, and get a Ferrari out of the deal...

Ghost, one other potential source - haven't worked with them, so use your discretion - for a long term auto loan is Woodside credit - www.woodsidecredit.com.

 

well said Noah

 

On alternative hasn't been discussed. I financed my car so that I could take my cash and lose it on investments.

 

Ummm, maybe that's the point. If you don't have $120,000 sitting around, maybe you should be buying a cheaper car?

If you have the money to pay for it outright, and feel that you can risk getting a loan and investing the money (because despite what everybody says, it's not easy to make 10% guaranteed in this market) then that's fine.

But if you don't have the money, there is nothing wrong with buying a cheaper car.

Sure, I could have financed a 360. But I paid cash for a 308 GT4, and still have lots of fun.

Dom

 

It's up to that person to buy something expensive w/ a loan, and that person should gather all information prior of making action, so don't need to regret later.

I didn't take any of posts as criticism, but just advise. I like this forum as I can get many angles on one issue.

Ghost,
Noth Texas Auto Leasing does some long term loans for only exotics. Tel 214-540-5470, and ask for Gary. He's honest & helpful. After talking to him few times, I almost bought a car using them from private exotic collector last year.

 

I LIKE IT!!!

I was able to bring a little excitement into this thread.

Everyone has their own reasons for making the decisions they make.

Who's to say which decision may be right or wrong for that individual; only time will tell.

I believe that most people finance their 'necessary' cars. How many finance their 'toys', I know not.