Choosing your dream car is easy, but owning it can be a difficult task – especially if you’re not objectively wealthy yet.
Luckily, in today’s world, you have the option of financing a car you’d like to acquire – which offers you a chance to own an exotic car without being in the 1%.
Here’s a comprehensive look at what financing an exotic car entails.
Exotic Car Financing
Car brands like Ferrari, Bentley, Rolls-Royce, and Aston Martin scream luxury with jaw-dropping price tags on their vehicles.
For instance, a Ferrari LaFerrari costs $1.5 million, a Rolls-Royce Phantom costs $455,000 and a Bentley Bentayga costs $160,000.
Now usually, these cars would be extremely out of reach to the everyday American – and even upper-middle-class Americans as well. However, thanks to car financing, Americans can afford to own one of these cars.
Financing an exotic car is a bit different from financing a normal vehicle – but with that said, let’s take a look at what financing an exotic car entails.
How To Finance An Exotic Car
The first step to financing your exotic car is deciding what car you want to buy – after which, you focus on choosing a potential lender or creditor.
To finance your car you can reach out to some of the big names in exotic car financing space.
The next factor involved in financing an exotic car involves ascertaining what type of loan you qualify for.
You see, your credit score determines how much you have to shell out on a down payment for a car. A 700 plus credit score will make you eligible for at least a 20% down payment – however, credit scores below 700 would require a higher down payment.
Another thing that gets taken into consideration in terms of getting approved to finance an exotic car is your ability to pay off the loan for the exotic car you’d like to purchase – this is taken into consideration by banks and authorized loan platforms in a bid to make sure it’s a loan you can afford to pay off.
Finding The Right Type Of Financing
There are a number of options available for you to finance an exotic car – some of which include outright payment, credit score car finance, and even personal loans from SoFi and similar companies.
One of the most important things to consider before you settle on a financing option is whether or not you can afford the monthly payments that come with your financing package – and that includes the monthly car maintenance costs.
It can be pretty hard to calculate all the maintenance expenses you’ll have to shell out – including fueling, oil changes and car insurance, all on your own so it makes sense to use a classic car loan calculator to accurately ascertain all the costs that will come with your preferred car.
After getting an accurate figure of your potential maintenance expenses, the next step would be to compare interest rates across lenders and creditors to see what works best for you.
It’s worth noting that the higher the deposit the lower the interest rate, so it makes sense to draw up a list of your offers and decide what interest rate is the perfect fit for you.
With all that said, the last thing to concern yourself with regarding financing an exotic car are the potential consequences of defaulting, which include late fees, a negative impact on your credit score, higher interest rates, and repossession.
Putting all this together would help you make the right decision on how to finance your exotic car.