Automotive

high end car loans

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  • Sep 21st, 2020 8:07 pm
[OP]
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Jan 14, 2014
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high end car loans

The US market seems to be full of lenders who offer excellent products for mid life crisis cars. Canada seems to be much more limited.

Are there any options for lenders that deal directly? (I'm not talking about the typical exotic dealership "we lease cars" by white papering someone else's funding).

I heard some of the credit unions do things in a more flexible way.
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Apr 16, 2007
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mobility1 wrote: The US market seems to be full of lenders who offer excellent products for mid life crisis cars. Canada seems to be much more limited.
In the US they have something called Lending Tree.
Lending Tree can connect you with dozens upon dozens of lenders. You can finance your new Lambo for 12 years if you want.
While Lending Tree is nothing more than a broker we don't have such a one stop borrowing service such as that.
mobility1 wrote: Are there any options for lenders that deal directly? (I'm not talking about the typical exotic dealership "we lease cars" by white papering someone else's funding).
For the most part auto dealers don't lease/finance their own cars unless it's some gutter operation that specializes in poor credit people.
Dealers in general do not want to hold their own finance paper and wait 4,5,6,8 years to get fully paid from a sale.
So while there may be a big sign that says we lease cars it's probable they don't and just farm your app out to a finance source anyways.

Anyone that is going to buy a highend auto product is not going to want to use their own finance source. At least the smart ones won't.
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Jul 30, 2007
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Are we talking Aston ? Lamborghini ? Ferrari? Mclaren? ... type of high ends
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Nov 21, 2010
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booblehead wrote: Are we talking Aston ? Lamborghini ? Ferrari? Mclaren? ... type of high ends
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Deal Addict
Jul 13, 2009
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???
Most dealers can offer financing or leasing, unless your credit is less than desirable and need alternative lending which those US ones are. Basically lending money to people who can't afford the car at all....which you should really reconsider.
Jr. Member
Mar 31, 2009
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And that is why the Repo business is flourishing in US.
Deal Addict
Feb 11, 2018
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If you need a loan to buy a true high-end car you might want to forget it. Or you will be digging yourself a bigger hole. About 4 years ago a brake job on a McLaren was $25K. Moreover only truly enjoyable if you have access to a race track.
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TomLafinsky wrote: If you need a loan to buy a true high-end car you might want to forget it. Or you will be digging yourself a bigger hole. About 4 years ago a brake job on a McLaren was $25K. Moreover only truly enjoyable if you have access to a race track.
And 5 years later, the guy still owing 180k in loan + interest when the car worth only 80k
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[OP]
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Jan 14, 2014
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mikeymike1 wrote: Anyone that is going to buy a highend auto product is not going to want to use their own finance source. At least the smart ones won't.
Not sure what you mean by this statement?
booblehead wrote: Are we talking Aston ? Lamborghini ? Ferrari? Mclaren? ... type of high ends
yes, that type of range. I've owned expensive cars before and cash financed them. That's an option here, but I would rather not.
bhrm wrote: ???
Most dealers can offer financing or leasing, unless your credit is less than desirable and need alternative lending which those US ones are. Basically lending money to people who can't afford the car at all....which you should really reconsider.
The US seems to have a lending industry for people who prefer to finance cars rather than need to finance cars. People with assets and excellent credit. Places like PenFed do this type of business, and as far as I can tell, we have no equivalent here.

https://www.penfed.org/auto
TomLafinsky wrote: If you need a loan to buy a true high-end car you might want to forget it. Or you will be digging yourself a bigger hole. About 4 years ago a brake job on a McLaren was $25K. Moreover only truly enjoyable if you have access to a race track.
I agree: if you need a loan, it's probably not a good idea to buy the car. But if you can afford it cash, it doesn't mean it's efficient. If you can get a low rate on an auto loan, then your cost of ownership is the depreciation plus the carrying cost (ie total interest payments) on the vehicle. For Canadians buying higher end used cars, it seems to make more sense to just pay cash - Americans with their options it might not be so obvious. I just can't tell if Canadians do have such lenders, and I just haven't found one yet.
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For that kind of ultra high end cars, maybe consider just leasing them instead.
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Borrowing money should be for a need, not a want.
As for 'Americans prefer to borrow', that's.....all marketing and poor financial education. Look at the last recession and the state of their auto loans as a country, it's ridiculously scary. How else do they have TV shows like Operation Repo?
Newbie
Oct 19, 2008
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Halifax, Nova Scotia
It's in interesting question, and I've been thinking the same thing as it keeps getting mentioned on things like VinWiki, Smoking Tire etc. Assuming you are looking at what they talk about.

An example for context, buying "older" exotic cars (older is relative) that have already suffered their depreciation, and are unlikely to depreciate much more, or, will even start to appreciate. But, are still expensive. Many will finance those, even if they have the cash, because the interest is less than they can earn on their money elsewhere.
As a random example with random numbers of what I have seen. Exotic Car was $250K new. It has depreciated to $100K, but has shown it will go no lower, or, is even starting to go up in value. So, rather than put $100K in cash into an older car, finance it at low interest rate, drive car for 2 years, sell it for $100K as it's already fully depreciated, and only cost for the 2 years is maintenance and any interest. If value of car goes up at all, it might not even cost you that.

*Edit: I haven't seen any companies specializing in financing these cars in Canada (there are a few in the US) but interested to see if you have any luck.

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