[PghMiller]

Hi, I'm new to this site (I posted this on LamboPower too).

Being new to this site, I'm not yet familiar with the "politeness" here. In some of the other auto forums that I'm a part of, tons of people can be pretty harsh and rude. I'm sure it's the same here so I'm preparing myself for some harsh responses to this...

For those of us that aren't millionaires, but can still afford a $1,500 payment easily, what are the recommended financing options?

When buying from a dealer, is their financing an easy and acceptable solution?

When buying from a private party, what options are there?

What's this "trick" I hear about opening an LLC in Montana to purchase the vehicle in the business' name to avoid sales tax? (PM me on this, obviously)

Just a little background.... I plan to buy a ~$100,000 Gallardo. I probably won't borrow more than $70,000 or $80,000, but who knows, if the financing is good I may put down much much less. (is there a required amount to put down when buying a car of this price?)
I'd like to make sure my loan balance at the end of every year is equivalent to the current market value of the car for resale.... JUST IN CASE I want to sell, I don't want to be underwater. I'm in an industry that could collapse at any time so I like to stay safe with financial decisions. Frankly I could have (should have) bought a G years ago, but I'm TOO safe when it comes to finances, I always like to live well well below my means.
My largest vehicle purchase to this point was a $40,000 NSX cash, so I'm not familiar with financing options. (NSX for sale if anyone is interested!!)

YES I attempted to do a search on here before posting this, but most results were from a decade ago.

THANKS FOR THE HELP!! I'm sure other new buyers would appreciate a thread like this as well!

********** UPDATE/SUMMARY **********
For anyone coming to this thread for the first time, I will give you a summary of the next 5 pages right now (so you don't have to spend time reading through banter just to get to the good stuff)...
1. Some people believe you shouldn't finance a vehicle. These people believe if you can't pay cash then you can't afford it. They say you should buy a car 1/10th of your yearly income.
2. Others feel that financing a car is perfectly fine. Rather than spending $100,000 cash for a car (for example), you could get an auto loan for $100,000 for a small interest rate (say 1.6% to 3.5%) and YES that means you will pay back a little bit more than you borrowed BUT now you get to keep your $100,000 in an investment tool to DO MORE WORK for you which will EARN more than the loss from the auto loan.
---- Loan companies recommended are Woodside Credit, US Bank, your own credit union, Putnam or Premier (which are like a rent-to-own programs), or do a HELOC on your own house to access funds.
---- The Montana LLC "trick" doesn't work when you're financing.
---- When getting a LARGE auto loan, they like to see previous auto loans on your credit of somewhat high values... if your only car loan was $25,000 then you might have trouble... but if you had a $25,000 loan then after that you got a $50,000 loan, now they would be more likely to lend $80,000 for an exotic. Try applying with your past auto lenders.
---- LARGE exotic loans WILL require you to provide tax returns, bank statements, etc. This isn't like the $25,000 car you bought which only took an hour at the dealer and they didn't ask for 1 proof of income document!
********** This update is as of 12/14/14, first 5 pages summarized **********

 

[Apex]

Welcome! Interesting post indeed, Honestly I have no clue about how to finance anything. I would wait until you could buy it cash, but thats just me. I can tell you about these forums though, this is a very respectful good (fairly clean forum) I say fairly clean cause I'm here lol. But good luck with lambo power IMO lol. With all that said people will tell you how it is. Plenty of constructive criticism here, here is the first of it: Why not wait? Have you thought about insurance and maintenance? Do you have a solid house and some savings? Never want to be the guy with a financed lambo living in a 2 bedroom "eh" house or apartment. Not trying to insult, just want to make sure you covered all these things. (If you do have a nice house, could you not earn the cash the same way you got the house and then buy a lambo?) If you don't have the house I'd focus on that first, if you can't afford both house and car wouldn't that be overspending and living beyond your means?

 

[Bxtech]

I read your post and then I read Apex's response. He beat me to the punch and said exactly what I was thinking! I totally agree about the preference in waiting until you could buy it in cash.

I don't know you, but it seems like you got a good head on your shoulders and have obviously thought some things out. Also, you seem pretty responsible as well since you bought your NSX in cash. I'm thinking that it sounds like you have about $20-$30K for a down (if you're planning to take on a $70-$80K loan), and you have a $40K NSX for sale........You're pretty darn close to being able to buy that Gallardo in cash. My opinion would be to sell the NSX, save for a little while longer and then forget the financing!

I also agree with Apex about the house. If you don't have a house, I'd definitely put that first on the "to buy" list before the Lambo. Or, if you do have a house with equity and want that Lambo now.....maybe take out a HELOC? (Home Equity Line Of Credit) Do some shopping around as HELOC loan interest rates can be very low. I think there are some HELOC loans that have 0% interest for the first year. So, if you can sell your NSX and pay it off within that time, you can get a free loan so to speak. Just like shopping for anything else, shop around and find the best offer though. Good luck!

 

[oufan2929]

I read your post and then I read Apex's response. He beat me to the punch and said exactly what I was thinking! I totally agree about the preference in waiting until you could buy it in cash.

I don't know you, but it seems like you got a good head on your shoulders and have obviously thought some things out. Also, you seem pretty responsible as well since you bought your NSX in cash. I'm thinking that it sounds like you have about $20-$30K for a down (if you're planning to take on a $70-$80K loan), and you have a $40K NSX for sale........You're pretty darn close to being able to buy that Gallardo in cash. My opinion would be to sell the NSX, save for a little while longer and then forget the financing!

I also agree with Apex about the house. If you don't have a house, I'd definitely put that first on the "to buy" list before the Lambo. Or, if you do have a house with equity and want that Lambo now.....maybe take out a HELOC? (Home Equity Line Of Credit) Do some shopping around as HELOC loan interest rates can be very low. I think there are some HELOC loans that have 0% interest for the first year. So, if you can sell your NSX and pay it off within that time, you can get a free loan so to speak. Just like shopping for anything else, shop around and find the best offer though. Good luck!

He wasn't really asking advice on if he should buy a house or not. He was asking about financing a Lamborghini... Go to a local credit union and see what they can do. If you buy from a dealer they have creative ways to help too I'm sure. Where there's a will there's a way...

 

[Apex]

He wasn't really asking advice on if he should buy a house or not. He was asking about financing a Lamborghini... Go to a local credit union and see what they can do. If you buy from a dealer they have creative ways to help too I'm sure. Where there's a will there's a way...

True but a house is something that needs to be brought up if your doing something like financing a lambo. Trying to help him to make sure he's got all his sides covered before going through with such an event. Was also curious on his responds, that will give us much more light on his situation. Curious to hear from the heavy weights of the site too.

As for Bxtech :cheers:
also for Bxtech lol, I agree with selling NSX to go towards lambo. It baffles me when people want to buy a lambo but can't afford it yet they have 4 cars they could sell that could go towards lambo or even pay for it.

 

[Ohlgren]

I looked into financing a daily driver a little bit recently, but I decided to pay cash in the end.

I understand a credit union will give you the best finance terms.
My bank does not have great terms, but is OK.
A lot of the great dealer finance options are for new cars. Dealers and manufacturers really want you to buy a new car. Great finance deals are harder to find for older cars.

Years ago.... the best route was a home equity line of credit. The rates were really low and if you defaulted, you lost the house not the car Joking aside, the rates were really low, you could do up to 30 year terms, and the interest is tax deductible.

The out of state company car trick works using Oregon as well. A guy at a car show was telling a group of us his dealership helped him out with the arrangements.

Finding out the insurance rates for the car you want is really key. My normal insurance company would not touch a Lamborghini. Get some quotes. If you plan to drive the car often, you may be in for a shock. If you are concerned about monthly payments and yearly expense, this is something very important to factor in. If you finance the car, you will be required to have good coverage.

 

[PghMiller]

Yes I have a couple houses, and helocs, and a mortgage company with 20 loan officers. I could pay cash but why would i when rates are 2%. I WOULDN'T pay cash unless I was a millionaire and like I said I am not... far from it. I'm not worried about maintenance, I'm good. I'm not worried about a payment of $1000-1500 as long as the rate is like 2-3%... I'm going to use the business account to pay the payment anyways (pre-tax). I'm just asking about financing options.

 

[diabloSOON]

He wasn't really asking advice on if he should buy a house or not. He was asking about financing a Lamborghini...

^ First, this.

Second, I agree about checking out a local credit union or a local bank you trust, especially if a friend or business associate can recommend a banker you could sit down with to see what they can do.

If you do finance, I think it's good to put more down than necessary, and then pay more than the minimum. Long loan terms and low payments are a recipe for being upside down later (and for higher interest cost). You save SO much money by shortening the term, or at least by overpaying on a longer term loan (like a 5 year loan but pay it off in 3 years or something). Maybe I should say it this way: get the shortest term you are comfortable with, and then pay as much more than the minimum as you can.

I think it positions you better if you already have an idea what terms you would have with a bank / credit union BEFORE you are sitting down in the sales office at the dealership. That way you can either comparison-shop for loan terms, or you can just say "no thanks, I have the financing taken care of."

Best of luck! :wave:

 

[zaxwax]

A simple google search will show you lots of Montana law firms who want to help you register your vehicle. Montana has no state tax for registration and no emissions testing. For around $1200-1500 a Montana law firm will set you up an LLC (probably single owner) with a Montana address. Then they will title the vehicle to your LLC. It's quite common in the RV world and it's perfectly legal in Montana. If you live in a state like TN which charges 7% sales tax on vehicle registrations, you would be looking at a net savings of around $5500.

That's the good news.

Now the bad news. It is of dubious legality anywhere outside Montana. Some states (CA being one) are going after people who do this. For the most part they are going after RV owners since RVs tend to cost in the $300k range. Different states have different rules, some require that if the vehicle spends more than X amount of time in the state it must be registered. Some require that it leave the state every X days. It's up to you to decide how much risk you want to take. Or, you could genuinely run one of your businesses out of Montana, for example you could have your bank accounts for an investment LLC in Montana and it might be arguably legal.

There are lots and lots of people taking advantage of this currently. I considered it, but since TN doesn't charge income tax, I felt like I should contribute to the states budget. You should research your state personally. You do run the risk of running afoul of a judge and you'd be on the hook for state registration at the very least. Like a lot of loopholes this one will probably close eventually. Montana isn't the only state with no registration tax but it does seem to be the popular one as evidenced by the number of law firms taking out ads to help you register your vehicle to your Montana LLC. Just remember, it's perfectly legal for them to help you, but you are the one on the hook if your state decides you wanted to evade state taxes.

The risk might be worth it if you want to run catless or something like that and your state has emissions testing. That alone was a consideration for me since my car has the very common P1314 problem.

 

[diabloSOON]

Also, at the amount you are wanting to pay per month, that might be a 7 year loan. I can't imagine still paying for a car that is 7 years older than when I bought it. Those payments start to feel heavier and heavier over time. I would definitely go shorter if you can.

 

[basilkarlo]

Yes I have a couple houses, and helocs, and a mortgage company with 20 loan officers.

Why not ask them instead? I am sure they are familiar with lending options

 

[Ohlgren]

Why not ask them instead? I am sure they are familiar with lending options

+1

Conversation seems odd after your last post. You appear pretty business savvy. Are you looking for financing tricks outside the norm? If not, I don't think I understand why you are asking us.

 

[PghMiller]

Why not ask them instead? I am sure they are familiar with lending options

Who? Ask my loan officers? I'm the one that trained them, I know what they know, we all share our knowledge with each other. They don't know about buying a $100,000 car.

Thanks for all the info guys, this is helping!

Honestly, I plan to get a Murci (or newer LP G) in a couple years when I'm more comfortable paying cash. So this G is temporary, that's why I don't care if I have a 7 year loan, I'll sell in 2-3 years. I've looked at the amortization schedule and my balance at the end of every year is low enough to sell and be good.

I'm well versed in mortgage lending, but not auto lending... that's why I'm asking about this. I guess I should also mention that being self-employed I'm going to run into that same issue everyone else runs into when they are self-employed... tax returns showing write-offs. When I got previous auto loans for around $40k they never asked for a single document. But from what I've read on this forum it seems like these financing companies will ask for full tax returns. That may not work for me... I'd rather provide them with 12 months business bank statements, is that possible?

If I buy a G from a dealer, I guess I'll just use their financing (if it's reasonable, which from what you guys are saying it seems like it's ok). So I guess I'm most concerned about getting a loan for a private party sale??

 

[Doctr V]

Doing a big loan for a high dollar amount isnt a big deal, I have done it a few times.... The best way to do it though is to run it through a line of credit though, save yourself a lot of hassle... They will most likely lien on your house and then make payments as usual... If you go into a bank or lender and ask for 80k to buy a car that has constant depreciation they may look at you like you just landed here from the moon.... Because thats a horrible investment for them as a lender... Do the line of credit... Thats how I buy at Mecum all the time without any worries...

 

[Bxtech]

Sounds like you're in pretty good shape. You're obviously well funded and you sound pretty savvy when it comes to financial stuff overall. Sorry, I would help if I could, but I honestly don't know much about where to get the best auto loan. As others have mentioned, credit union seems to be the best one to check out. I've had friends that bought "regular" cars say that the best deal was their credit union too. Just like anything else you'd wanna buy......shop around to get the best deal.

Good Luck and we look forward to you showing off your new Lambo here on the forum!

 

[REKIII]

Check out Woodside Credit | Classic Car Loans & Collector Car Financing | Woodside Credit

They have all sorts of options and specialize in loans for these kinds of cars. They were very helpful when I contacted them.

 

[khanhdom]

I financed my LP from Lamborghini Dallas. They didn't ask for any tax returns but I did down 50% and I got approved within a few minutes lol. If you don't want any trouble, just down 50% and you shouldn't have a problem.

 

[Celeste_Phoebe]

You get far better rates borrowing for a home at those amounts than a car.

Make sure you have at least $3 million or more to play around with when considering an impractical, high end car. Maintenance can take a +$10k hit on you at times.

In the mean time, just get a Camry, Tacoma, Avalanche, F150 for all around practicality. The people I know that drive exotics, tend to drive those that I have mentioned. Also, a sport bike can fit your speed fix for a lot less cheaper, most litre bikes can keep pace with supercars on a public road.

My Verdict: Bad Idea, Buy cash.
I don't know anyone that does finance +$200k cars.

An alternative is the Ferrari F360/F355, those are average $60k and sound just as good.

Keep dreaming big, you'll get there.

 

[PghMiller]

3 Million??!?!?!! Really? It's just a car payment. $1,500/mo, no big deal. And if some maintenance is needed for $10,000, no big deal. I don't know, I must feel differently about this than a lot of you. I by no means have even ONE million dollars, not even close! But I wouldn't have a problem paying $1,500/mo for a car payment and wouldn't blink at a $10,000 repair bill. I guess I just value money less, I don't know. Maybe I just want a G more than the normal person.

I make $XX,XXX per month. My existing bills are like nothing, I'd say like 25% of that. (and my wife makes a very well-off salary, which I'm not even considering in all of this).
Choosing a car payment of $1,500 rather than a "regular" car for like $750/mo is just a CHOICE. I choose to, because I want to.

Our dailys are A6, MDX, and Ford Truck (never gets used, just have "just in case"). I'm replacing my NSX with a Gallardo. I don't see the huge issue, everyone is making it out to sound like you need to be a millionaire to handle $1,500/mo and handle a $10,000 repair/maintenance bill when one comes along.

I'm getting the feeling I'm the poorest person on this site HAHA!! I'll be the poorest Lambo owner you've ever known LOL!! Also I'm 33, maybe that's why I don't have a million yet... I'm sure I will one day.

 

[basilkarlo]

You sound like a troll.