Question for Auto Financing Gurus | FerrariChat

Question for Auto Financing Gurus

Discussion in 'General Automotive Discussion' started by VAF84, Mar 6, 2019.

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  1. VAF84

    VAF84 Formula 3

    Jul 23, 2016
    2,251
    Central Texas, Evansville IN
    #1 VAF84, Mar 6, 2019
    I was perusing eBay and ran into this ad on a 458. The listing presents several financing options and one of them is the following:

    "OPTION # 1

    BUSINESS LINE OF CREDIT:

    $159,900 X 6.5% (ANNUAL RATE @ SBA Rates) = $10,400 PER YEAR

    @

    $10,400 (÷) 12 MONTHS = $860 / EACH MONTH"

    How is this possible? Seems like the only other fee on top of that is Florida taxes according to the seller. First of all, is it even possible to get a business line of credit to buy a Ferrari assuming you're not a dealer. Second, with a 6.5% rate it would take many many years to pay off the loan assuming there was no down payment at the monthly payment listing.

    Personally, I feel it may be a ploy to get people to call because there seems to be some fine print missing here. However, I'm curious if anyone can chime in as to whether there's any truth in that posting. There may be some options for business owners that I'm not aware of.
     
  2. henryr

    henryr Two Time F1 World Champ
    Silver Subscribed

    Nov 10, 2003
    21,712
    Atlanta
    Full Name:
    Juan Sánchez Villa-L
    #2 henryr, Mar 9, 2019
    and for what reason would your business be utilizing a 458 ?

    smacks of SBA fraud to me
     
  3. VAF84

    VAF84 Formula 3

    Jul 23, 2016
    2,251
    Central Texas, Evansville IN
    #3 VAF84, Mar 9, 2019
    I've heard of people leasing exotic cars through their companies, etc; but you may be right. I just don't see how those numbers could possibly work.
     
  4. henryr

    henryr Two Time F1 World Champ
    Silver Subscribed

    Nov 10, 2003
    21,712
    Atlanta
    Full Name:
    Juan Sánchez Villa-L
    #4 henryr, Mar 9, 2019
    "people" do lease them thru businesses.

    the second question would be, how much of that lease do they actually write off.... and what part gets allocated as compensation back for personal use.

    the third, is explaining the use if you are ever audited.
     
    VAF84 likes this.
  5. LARRYH

    LARRYH F1 Veteran
    Owner Rossa Subscribed

    Jun 3, 2011
    9,171
    virginia usa
    #5 LARRYH, Mar 16, 2019
    That is quoting interest only ...you will see that is not available or it is first year only or some other bs...if you owned a business and had a business line of credit perhaps you could do it but you still have topay the car off this is a bait and switch ad...
     
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  6. VAF84

    VAF84 Formula 3

    Jul 23, 2016
    2,251
    Central Texas, Evansville IN
    #6 VAF84, Mar 18, 2019
    I agree. I just couldn't back into the numbers, and I was wondering what his basis was for making that marketing claim. What you say makes sense, and I can now see how he came up to that number. I never considered that someone would just pay the interest without any principal. So his claim assumes the buyer only pays the interest for the year. However, that places the buyer upside down on the car. It's a bad deal no matter how you look at it.

    Thanks for pointing that out!
     

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