how do you finance a ferrari with no credit?

Question

I heard you can finance a car if you put %50 down. I have no credit, but recently just started a business that is making me 8k per month. I have $120,000 cash, but don't want to go2 the dealership with no credit. the car i want is $230,000

Answer 1

With "no credit," you probably don't... but let's look at this. I am guessing you are looking at either a 599 or 612? This are the closest to the price range you mention, though both are a fair amount above that (or maybe a used 550 or 575).

In either case though, keep in mind you'll have an additional $20k in taxes, and registration and delivery will not be cheap either... in the end you are looking at about $260k for the used car, just short of $300k for the new.

Assuming the $120k down payment and a 36 month finance, you'll be paying about $4k a month. Figure another $1k a month for insurance and saving for maintenance. Now, additionally, this is not a car you can realistically use everyday, so you'll also need to have another car, which even if you have it will still have insurance and repair costs which will need to come out of that $8k a month (not to mention food and housing costs). You can do the math, but the fact is, you will not exactly be living well if you try to afford the car on that budget (not to mention you are leaving exactly zero margin for any unexpected happenings with the business). If you go to a 60 month loan, you can probably free up about $1k a month, which would make it almost doable (at least, as long as that is $8k a month in take home, and not a before taxes number).

The problem here isn't if you have the credit, or can get it, it is really that you are looking at a car that is outside of your price range as things currently stand. You could probably lease the car, which would move it into your price range, and you'd have the advantage of paying interest only on the depreciation... though that is alot to pay when you will not be able to keep the car.

The other possibilities would be to secure a credit line against your business ownership, but you will need a substantial value in the business to get the amount of money you need, and if you have a financial hiccup it could easily cost you your business and the car.

And buying the car through your business will only be tax deductable if you can show that it's used for business (do you want your business logo plastered all over the car?); however, you could create a personal corporation to own the business, and use this to buy the car and this would be done with pretax dollars. In the end though, you should just put off any such consideration until you've grown your business (which won't happen if you are investing too much in toys like that).

Answer 2

Ferrari dealerships offer financing and leasing. However, the interest rates tend to be very high (11% or so). Going with your local bank is the best bet. You can usually get a rate of 6-8% with your good credit. When I finance a car, I do it through the bank. You also have a working relationship with them, so you don't have to worry as much about scams/to-good-to-be-true offers that you see on the web. If you don' t have sparkling credit, then I'd avoid financing this type of car. You'll usually wind up losing it or paying many thousands in extra fees. Best of luck. P.S. On a newer Ferrari, you'll often be looking at payments in the $1500-$4500 range, depending on how much you put down, and which car you choose.

Answer 3

Good deals take time. You have already saved up half. I suggest continuing those awesome habits and go to the dealer and pay with cash when you have. How fun would that be to buy a Ferrari with $100 bills!

Now the real question is why you are dropping that kind of dough on a car instead of investing into long term retirement and other wealth building activities. However, if you must buy a car – pay cash for it.

Answer 4

Why don't you try and get a slightly less expensive car first. You usually don't have to put 50% down, but the more you put down the better rate you will get.

Personally if you really want a car, try financing a $20,000 car first and try getting the ferrarri later.


Also, i would look into the BUSINESS buying the car, because then it should be able to decucted as a business expense

Answer 5

Usually if you bring over a copy of your buisinesses finances they will look to see if they could use a part of your shares as collateral, but what I would do is finance it through the buisiness and write it off on taxes, that way you can write off at least part of the depreciated value and be able to lower your income taxes. Basically take a paycut for they difference and save yourself some income tax.

Answer 6

Easy. Go online and make an application with a company that does just car loans. You should find plenty. Especially at that sort of money. You will even be able to haggle the interest rates.

Answer 7

If you show up at the dealership with that kind of coin you can bet they will call the FBI to come assist with the counting of the Benjamins.

Hopefully all that money is being made legally and that you have the proper documents to back it up.

Answer 8

wow....what kinda buisness is this :) i want in hehe....well im not sure who you heard that rumor from but you probably shouldnt go to a dealer and bring that much cash they might see you as a druglord or something like that....Go to a bank of your choice and open a buisness checking account deposit all your money into there and write them (dealer) a buisness check that should help you with the problems your having or simple get a credit card of some sort and get a friend or relative to cosign with you and start to earn credit.........Goodluck :) enjoy that ferrari! :)

Answer 9

Maybe the dealership will take your monthly income into consideration if you can prove you make that much a month, like showing them financial statements or tax returns.

Answer 10

That's awesome that you've saved $120K so far. Just keep saving your money. You'll have what you need before you know it, and then the car will be completely yours.