[Ferrarix7]

I am very much looking forward to being able to buy my first Ferrari this spring or early summer. I have a 308 in mind. However the catch is that I will need a loan. Last year I was set on buying a Lotus Esprit, but was only approaved for $15,000. And did not come up with enough before the car sold. (Im "just starting out" as my grandmother puts it hahaha) So all year Ive been "polishing" my credit for this spring/summer. They then got a black Esprit, now listed at $35,000.

All I could think about is that if Im going to spend in the neighborhood of that much, for anything with 4 wheels, its going to be a Ferrari! Ive already looked into insurance, and maintnence costs, so those wont be too big of issues for me; at least now hahah.

I thought who better to ask than those already familiar with Ferraris, and here I am. My question is if anyone can reccommend a place to look for loans, or if there are any that specialize in exotic cars? I have a credit score of 727 now, and I beleive thats just above the threshold to be considered "excellent" Or any advise anyone has to offer on this topic is greatly appriciated. I can pretty easily afford about a $600/month payment.
Or if nothing else perhaps suggest to me a good way to get started on this.

Perhaps this isnt the thread to be asking about 308's for sale, but I will be keeping a lookout for QV GTS's, So by all means PM any prospective ones my way.

Thanks in advance,
-Darren

 

[Gcalo]

Your credit score should be the least of your concerns.

Buying a Ferrari requires you to do a considerable amount of work to know in advance the issues that could present themselves. This is what's critical.

308's are in the 20+year class and a lot can go wrong with these cars.

They are not Chevy's that will still run with oil 5 years old!

You need to learn each of the model years- carburetor vs. F.I. -and what each model presents for issues so your first purchase is a pleasant one.

Overhauls can run $5K-7K plus plus plus.

Purchase Andrew's book - Ferrari Life Buyers Portfolio- and learn about most of the Ferrari models. This is a valuable resourse.

Take your time to learn. We can't answer all the questions here and that's why you should be doing your homework,

Welcome to F.L.

 

[Boxer]

Your credit score should be the least of your concerns.

Buying a Ferrari requires you to do a considerable amount of work to know in advance the issues that could present themselves. This is what's critical.

308's are in the 20+year class and a lot can go wrong with these cars.

You need to learn each of the model years- carburetor vs. F.I. -and what each model presents for issues so your first purchase is a pleasant one.

Overhauls can run $5K-7K plus plus plus.

Purchase Andrew's book - Ferrari Life Buyers Portfolio- and learn about most of the Ferrari models. This is a valuable resourse.

Take your time to learn. We can't answer all the questions here and that's why you should be doing your homework,

Welcome to F.L.

+1. Stretching yourself to buy a Ferrari is a very unwise idea. Do it when you can both easily afford it, plus absorb a $5k unpleasant surprise. Plan on at least 6 months of searching to find the right car.

 

[JazzyO]

+2. I always advise people to have $10k in reserve. That way you can weather most storms potentially coming your way. Even without surprises your Ferrari will cost you a couple of grand a year excluding finance and insurance.


Onno



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[bugattitech]

The price of the car is not the final price of the vehicle. You are buying a 20 year old machine. It is going to leak, it is going to break, and parts arent that cheap. If you know how to work on them then you could save money that way. I dont think this is wise, and I didn't think banks gave out loans for cars that are two decades old.

 

[sunskr]

Its great that you have an interest in Ferrari's.

A couple of points, will this be your only car, not good.

Most owners do not get a loan for the car and those that do could have paid cash but for one reason or other put the balance of money to work else where

As pointed out above a loan for a 20 year old car is not something most places will do, so an equity loan from something else you own would be needed.

I would set up an investment fund, put the $600 a month away, do your homework on what you would like and pay cash

 

[Gcalo]

I see the issue of the loan as irrelevant here, and taking a loan is not the worst business decision either.

There are many institutions that will lend against anything.

The point of relevance is the the car, his limited knowledge of the car, and his cash reserves to cope with the unexpected maintenance expenses.

 

[JTNY]

I have this same conversation with my grandkids. What are you thinking? The luxuries you see around you that make sense and people get to keep long-term were not bought with credit. You want an Fcar on credit? Have you paid for a daily driver, a home and put some money away for present or future kids?

Maybe you need to be my age and have seen people who lost cars, homes, wives and most everything they ever had. We're seeing this in a big way again. Buy a good driver, have a bank account, get a beautiful wife and nice home and buy your toys with cash!

This is a time when you buy Fcars because all the idiots who couldn't really afford them have to sell them, and the true enthusiasts who love them can afford them again.

Being a guy buying a cheap Fcar on credit now is a sad thing. No offense meant, just an old guy scratching his head.

 

[GPGardin]

Research everything.

Plan on at least 6 months of searching to find the right car.

Fully agree with Boxer here. I spent EVERY night for 9 months looking at cars.com, autotrader.com and e-bay seeing what was available, moving or new to TRY and learn all I could about proper values.

Read everything I could get my paws on and considered all advice. By asking owners and reading their posts one can learn the positives and pitfalls of the model you want.

The advice about being prepared for the worst is good. No one wants to get a lifelong dream only to have it sit waiting until you can afford an unexpected major repair. These are high stung cars and it does happen if maintenance is skimped upon.

Good Luck and keep us posted.

Greg

 

[JazzyO]

Fully agree with Boxer here. I spent EVERY night for 9 months looking at cars.com, autotrader.com and e-bay seeing what was available, moving or new to TRY and learn all I could about proper values.

I spent around 6 months researching my 550 purchase. But it is important to note that a lot of the best cars are never advertised, and my 550 was bought without it ever being on the public market. Make sure that you let people (dealers, specialists, brokers) with good reputations know that you are looking for a car and what your requirements are (colour, mileage, age whatever).


Onno



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[Gcalo]

Fully agree with Boxer here. I spent EVERY night for 9 months looking at cars.com, autotrader.com and e-bay seeing what was available, moving or new to TRY and learn all I could about proper values. ---

This is right on and valuable. You have to do the homework to know the varaibles and what's what.

---Read everything I could get my paws on and considered all advice. By asking owners and reading their posts one can learn the positives and pitfalls of the model you want.

Again another very well stated and valuable comment. This is the key to ending up with the right vehicle at the right value.

--- No one wants to get a lifelong dream only to have it sit waiting until you can afford an unexpected major repair. ---

And again well-stated. It's like finding the right lady. You don't commit to the first one you meet. Take your time.

 

[Ferrarix7]

Thanks all for your replys. See, Im glad I asked first If several owners are saying this is a bad idea now, then I am willing to listen. However, (much like yourselves Im sure) I have a life long passion when it comes to Ferrari. Ive already downloaded the 308 buyers guide (thanks for that suggestion) A 328 owner said to expect, as he does, about $500/mo (~$4k/yr) in maintnence costs, so I am factoring that and insurance on top of a payment. Plus I am mechanically inclined, and get mildly upset when I hear of people skipping their maintnence even on their daily drivers. So I think you can see where I thought this is possible?
If it takes a couple more years of saving and research, then thats what it takes.

I have this same conversation with my grandkids. What are you thinking? The luxuries you see around you that make sense and people get to keep long-term were not bought with credit. You want an Fcar on credit? Have you paid for a daily driver, a home and put some money away for present or future kids?

Maybe you need to be my age and have seen people who lost cars, homes, wives and most everything they ever had. We're seeing this in a big way again. Buy a good driver, have a bank account, get a beautiful wife and nice home and buy your toys with cash!

This is a time when you buy Fcars because all the idiots who couldn't really afford them have to sell them, and the true enthusiasts who love them can afford them again.

Being a guy buying a cheap Fcar on credit now is a sad thing. No offense meant, just an old guy scratching his head.

With all due respect, this shows the lengths Im am willing to go, and how strongly I want one of these. I do have a paid daily driver, Ive lost cars, and enough money that Im almost immune to it now.
I hear this logic a lot actually, and perhaps Im just a different type of person? But I have no desire of home ownership or my own family for at least 10 more years. I know its financially wiser to pay cash, but its not like Im trying to make an investment here. To me it will be well worth the extra expense, Im ok with that. Its just sounding like as much as I want it to be, its not my time yet...

 

[Gcalo]

---I know its financially wiser to pay cash, but its not like Im trying to make an investment here. To me it will be well worth the extra expense,---

As I previously stated, financing is not the worst alternative and in many cases it makes more sense. If you secure financing then the lender has the confidence to believe you can afford to carry it.

Take your time so you don't make mistakes.

 

[JazzyO]

Sounds like you've put some thought into it, Ferrarix7.

As long as you know what you're getting into and you've made some financial provisions, then it's certainly possible. A lot of people have bought Ferraris before they could really afford them and made it work, restoring a bit here, doing their own maintenance there, and often those are the best loved and cared for cars.

Good luck, and as Gcalo said, take your time.


Onno



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[titan305]

I don't own a Ferrari yet, but I do have a family with all the bills to go with them though. Owning a Ferrari will have to wait for now, but that doesn't stop me from buying other things in my price range that I really could do without. I have gone through alot of vehicles though. The "hunt" is always enjoyable and I end up buying something only to enjoy it for a while then move on to something else to try if I am not happy .

If you are in a position to buy a Ferrari and deal with it on a reasonable level the go for it. If it doesn't work out sell it and move on.

Hell, I have never even sat in a Ferrari but these cars are and always have been on the top of my list to own some day. If I was single I would have one for sure. BUY IT I SAY!

 

[I'm gone]

There really isn't anything better than (imo) having a paid for ferrari in the garage. Save up and pay cash, say summer 2010 one year four months from now.

 

[Ferrarix7]

Sounds like you've put some thought into it, Ferrarix7.

As long as you know what you're getting into and you've made some financial provisions, then it's certainly possible. A lot of people have bought Ferraris before they could really afford them and made it work, restoring a bit here, doing their own maintenance there, and often those are the best loved and cared for cars.

Good luck, and as Gcalo said, take your time.


Onno

There really isn't anything better than (imo) having a paid for ferrari in the garage. Save up and pay cash, say summer 2010 one year four months from now.

Not only is this good advise it sounds like great philosophy. I couldnt agree more, and not only that the TLC going in adds uniqueness as well, not that a Ferrari needs anymore.

Truely owning one must be one of the best feelings on Earth. OUCH! That is tempting 16months. But Im so close now...

Which brings back my original question. It sounds everyone here was fortunate enough to not need financing, but does anyone have any reccomendations as to a lender?

-Thanks

 

[Gcalo]

---does anyone have any reccomendations as to a lender?

Where are you located?

 

[Ferrarix7]

Seattle, Wa

 

[Lambo65]

Being mechanically inclined is a major asset. In the past 12 months the following were my repair/service bills for a few of my cars (I am a total idiot when it comes to mechanicals):

1986 Lamborghini Countach $57K, total engine out overhaul.
1984 Ferrari Boxer 512BBi $56K, total engine out overhaul, larini exaust,
punch list corrected, and $3K exterior detail.
1974 Ferrari Dino 246GTS $40K plus counting. Work in progress.
2004 Gallardo $7K new clutch, $2,800 new windshield
2003 Ferrari 360 Spider $65K, challenge grill, capristo 3, Haman kit,
Haman rims, clutch, spoiler repair, carbon
fiber interior
2000 Maranello $15K service and engine overhaul
1988 Testarossa $ Unknown, major engine overhaul, work in
progress and not complete due to parts
2007 Lamborghini LP640 $6K, new windshield
2001 Lamborghini Diablo 6.0 $2,400 new windshield
1997 Lamborghini Diablo Roadster $20K, new stereo/radar system, full service

Some work were necessary while others were an upgrade where I will never get my money back. My opinion is that life is short and if you want to reward yourself with a 308, whether finance or cash, go for it. This is a good time for you to get a Ferrari or any other exotic cars due to the economy. As for cash or finance? If you can make money on the $35K cash in your business, then finance the car. I have cars that are financed. I am in the real estate business and for me $400K in cash will yield over $650,000 or more so I rather finance the $400K and pay monthly payments and have the cash work for me to make more money. Why not treat yourself. It will motivate you to work harder, you will feel better about yourself, and you will enjoy life better. I would really reconsider the car you really want. If the 308 is your dream car, go for it. If you are thinking to use it for six month or a year and trade it in for a 360, I would wait and get the 360 when it is comfortable with you. You will lose your ass off if you buy a car and trade it in a short period of time. If the car appreciates in value, more power to you. It is like winning the lottery. As for financing companies:

Woodside Credit has a 12 year finance program. I have never done business with them before.
Putnam Leasing has a affordable leasing program with a residual at the end of the term. I have dealt with them before.
Manhattan Leasing has an affordable leasing program with a residual at the end. I have two cars currently with them and they are a great company.

With a lease, you do not pay taxes all at once. It is spread out over the course of the lease.

It is your hard earned money and do what you feel comfortable. There are no guarantees in life and if you are able to swing it and able to go to sleep at night, go for it. Good luck to you.