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Discussion in 'Chicago' started by MikeAR303, Jan 9, 2009.
Note the length of these loans. Do people actually do that?
I've wondered the same thing myself many a time. If the payments have to be stretched out THAT thin, then the buyer is obviously in the wrong tax bracket for late-model exotic ownership.
Not really. Those deals are there for the exotic owner that most of you will probably never meet. I've never heard off them until my good friend moved to LA. From my understanding there is a following of younger owners who simple purchase the car, drive it a few months or so, then get rid of it. I'm sure if you asked nobody actually goes the full length of a loan of that shape. It's designed for the wham, bam, thank you Enzo approach.
It's true, I'm still trying to pay off my 1979 Chevy Caprice that I purchased new in 79'! Hey, times are tough, I've been unemployed since 1981.
Byl time you get your new car paid off, it's a classic.
A couple of obvious problems with a 12 year loan for any car- Over the life of the loan the interest charge will be more than $103K, bringing the total cost of that first example to $370K without ever calling Drex. During the first few years of the loan most of the payment will be going towards interest, guaranteeing that you'll be underwater- try to sell the car after five years and you'll have to add money tp payoff the loan.
you gotta love the way american media has toted buy now pay later! there will always be people who believe I want i want!!! never been taught the any discipline....
two words: Gap Insurance
LA was the first thing I thought of. That's also the home of the daily rental.
Wow, 14 years? That is hard to fathom as I am only 28. Maybe I should go for one of these deals and ask Congress to bail me out if I find out I cannot afford the payments after the first few years...
i am glad to see all of our website pages are being read! I wanted to chime in...
These finance plans are used from time to time, mostly for people who dont want to drop 300k completely out of pocket. Some of these customers see how things go financially during the year and then determine where and when to pay down, or pay off the car. Sometimes we see guys in the finance world do this because they are back loaded pay, with huge bonuses at the end of the year. Now everyone is in a different place, maybe they are building a home, or have to much tied up in a recent investement, but they know at the end of the year they can shell out the cash. These plans are designed for that customer. Minimum money out, and maximum flexibility.
If you think that is exotic financing then take a look at our deal with MB financial, it is a one year interest only loan! If you work it right you can drive a new V8 Vantage for 500 a month! Just another way to look at it fellas...we figure if we are selling exotic cars, why not have all the exotic ways to by them!?!?