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Financing your Gallardo

19K views 71 replies 29 participants last post by  alexGS  
#1 ·
Ready to purchase a Gallardo and would like to finance a portion of it.
I am self employed so most places I have done auto loans with recently (local credit unions) have to run my tax returns as of recent when they used to not.

Curious as to which lenders you guys are financing your Gallardo's through and the process of it. Also if you wouldn't mind sharing what your rate it and over how many months.

Appreciate it!
 
#7 · (Edited)
I'm also self employed. Having recently purchased my first Lamborghini, a 2014 Gallardo LP560-4 Spyder, I can state that on a $160k sale price, I put $50k down, financed the remainder, including registration fees (in the thousands $$$ in NV), & taxes, at 4.09% with "stated income". No tax returns needed. Of course my credit score is north of 800, and I hold $0 credit card debt. Your mileage may vary. Good luck to you, it's truly an amazing experience. :D
 
#9 ·
Im also of the belief that you dont finance toys. If Im going to borrow money for something I better be living in it or it better be generating me income. Lol. I dont owe a penny on any of my toys. If I cant pay cash I wait. So far anyway. Allthough a smoking deal on a Huracan might change my mind. Haha.
 
#11 ·
Financially speaking, wouldn't it make more sense to finance a payment over longer time, say one of those crazy 144 months at 4-5% rather than paying cash? I'm no financial adviser nor do i have enough capital or smarts to invest in stocks but it is my understanding that it wouldn't be too hard to generate 7-10% interest from money invested in the market? so take that money you would have spent paying cash or paying for a shorter time and let your money make more money
 
#12 ·
144 months is a lot of interest though. I have used NFCU and USAA many times. I'm not sure if they only it anymore but I had no roubles getting 2.99-3.99 for up to 84
 
#18 ·
I choose not to finance. Wife is NOT a car person and paying a monthly note would only remind her (and me) that she is not a car person. Although interest rates are low, there can be some advantages to not financing......
 
#19 · (Edited)
I finance all my vehicles from the local credit union at 1.9% and of course ensure I have money in the portfolio to buy them out right before I pull the trigger. Out of curiosity, what are the non-emotional advantages to not financing?

Edit: I think I understand your post fully now. What you are saying is that there are emotional aspects of not financing that could be advantageous. I get it.
 
#25 ·
I am not a financing type of person, I never have had a car loan. I am 35 yrs old and I've had roughly 30+ cars in the last 10 yrs. I choose to pay cash for my vehicles. I don't EVER want to owe anybody anything. If I can't afford it, I don't buy it, very simple mantra that I have used since day one. My dad taught me that valuable lesson.. And I also have plenty of other investments where my money is making money... Not all eggs in one basket per say.

If you need to finance, theres nothing wrong with it. Check local credit unions, banks, loan sharks, etc. Find the one that best fits your needs and go with it. But just do your homework and understand how much you are "paying" for that loan. Interest vs capital payments. Rates are super low these days actually, so it is smarter to use someone elses money while yours grows somewhere else.
 
#26 · (Edited)
So you buy your homes out right in cash?


"Rates are super low these days actually, so it is smarter to use someone elses money while yours grows somewhere else."

I kind of feel like you are talking out of both sides on this post. You start by saying you never finance anything then you end it by saying with rates this low its smart to use someone else's money?
 
#29 ·
Ive only financed 1 vehicle in my life ( a new Corvette) and I won't ever buy new again. All my other vehicles I've bought were used and paid in cash. However, I get bored easily so I don't usually keep my cars longer then 2-3 years anyways.

With that said, whats some of you money smart guys think of this... I'm looking to put $40-50k down and finance the rest with one of those 84-100 month loans- only bc I don't plan to keep it long anyways..
 
#31 ·
You realize with a 100 month loan, you will probably be borrowing at an astronomical rate right? 10%-20% potentially. Then, all of the interest payments are front loaded, which makes paying it off early a ruse. Do you have an accountant to speak with instead of asking questions of people on a car forum? You sound desperate.
 
#40 ·
Whatever you do, do not do a balloon lease through Putnam or Premier. Those deals are all front loaded and you'll get raped. They are a high risk lender and people tend to use them because they have to, however, some don't know better, and when they hear lease, it sounds attractive. STAY AWAY!
 
#48 ·
I have used USAA on all three of my Gallardo
 
#57 ·
eh kinda. will definately be using it for work some time but definately less than 50% of the time.

Dont have an accountant, i know i should but at the same time my company is small enough i am having a hard time justifying it since we have had everything under control for now.


It's not that hard... just find a way to make your car useful for the company... advertisement, take customers to dinner, etc

Advertisement would work. i could slap some magnetic sticker type things with my logo/number on it!


IG SL_hulk
 
#63 ·
First time poster, but finally a subject I actually know a bit about. Buying cars with cash is like heroin, it will make you feel all warm and happy but it's actually quite harmful to your health (financial in this case.) The only advantage to paying a large down payment on a car is if you are looking to sell within a short period of time (1-2 years) and don't like the concept of being upside down. That being said it is better to be upside down and pull some cash from your investments to pay to get out from under the loan. You will still end with a better bottom line than if you had put any down at all. I finance anything they'll let me in life if the rates are low (less than 6ish). So pay off your credit cards and other higher lines of credit. Put nothing down on cars and houses if you can. At the end, you will be wealthier for it.

My background is financial consulting, crunch the numbers. It's not the fun way to do it, but it's what's best for maximizing your wealth.

If I have $10M in easily liquidated funds, I would still finance a car at any price. Even a little 15K Toyota throw away for my daughter.
 
#66 ·
If you stretch the time frame to a long enough time (say 10 years,) even investing at the height of the market, you can still ride the dips down and recover an average of 10%+.

It's just a different way of thinking. Like I said, people like to pay cash for things, it makes them feel secure. So that does have value, but I don't get paid in warm feelings.

This is not a sales pitch to invest in the market, investing in securities involves risk, blah blah blah. So says the sales prevention department (or commonly referred to as the compliance officer)
 
#69 · (Edited)
Here's a quote I got from Woodside Credit this morning. this is based on credit 740+ and of course other factors like DTI, etc...
Purchase price $130k / Down payment $26,000 / Amount financed with 8% TT&L ($10,400) total amount financed $114,400 at 5.50% with 144 month term. monthly payment $1,087.00. I received quotes at $90k, $100k, $110k and $120k as well. Just for example went with a higher amount.

I'm currently looking to pick up a "G" myself in the near future. I tend to go in and out of cars quite often. So for me it makes sense to put the least down, stretch the loan term long as possible, to make the monthly payment low as possible and use my other $$ to invest it where it yields me a return.

Let's compare buying a car cash to financing with the terms above from woodside credit. I can put down the $26,000 for the car and with the remaining $104k invest it into either a business or what I like to do is a real estate rental property. With $104k I can pick up either 2 rental properties all cash in the midwest, or finance 3-5 rental properties at 25%-30% down. But let's say I pick up 2 rental properties all cash with the $104k...Those 2 rental properties will generate more income than the $1,087.00 monthly car payment mentioned above. Plus I have an asset that may appreciate 1-2% year after year and get the tax benefits (write offs). I don't intend to keep the car for more than 2 years probably so the 144 month term isn't a big deal.

Just like real estate, you make your money on the purchase and not on the sale down the line. Be patient and buy the car at a good price (below market)

In the end, each their own and should do what you feel is comfortable. I've been in real estate over 14 years and met many wealthy people. The wealthiest just know how to leverage other's money (bank, private loan, etc..) to their advantage.

Cheers