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Hey all, long-time lurker here! In fact, I joined this forum going on 8 or 9 years ago when I was a teenager so it's surreal to be posting this question here, to be honest.

My fiance and I are starting the process of buying our first supercar - we are looking to buy something in the 2nd half of the year and are currently narrowing down our choices, but we are fairly certain we are going to go with a Gallardo Superleggera (something in the $170k range), and I had a question about y'alls experience with financing?

We will most likely finance $100k of it and pay cash for the rest - we have excellent credit, make enough income to support the purchase so those key aspects won't be an issue but I did have a few questions regarding financing and if anyone would be able to provide me with insight in y'alls past experience, I would appreciate it!

1) I read online that past auto loans can impact your approval on a large auto loan - have any of y'all found this to be the case for you? Our largest loan between the two of us is only a $25k auto loan which was taken out 5 years ago and has since been paid off. So we don't have a long history or track record of taking out large auto loans. In y'alls experience has this been an issue? We do have great credit.

2) What is the norm in providing Pay-Stub information? Do they request to see 2 months' worth? 3 Months? More? The only reason I ask is I am self-employed with my own business and my fiance recently quit his job to help me grow the business full time - My concern has been that since he will only be able to show W2 employment at my company for 4-6 months that this may cause an issue with financing as well. What has your experience been with proof of employment, providing pay stubs...etc?

Any other insight you have would be appreciated - we are two long time dreamers excited to finally pull the trigger on our first large car purchase and I am just trying to get all my ducks in a row so that when we go to buy or go to get a pre-approval we are prepared.

Thanks!
 

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For the first question, you'll likely be OK because of the large downpayment. To a point this will assist the second point also. You'll have to find a bank or credit union that understands what you do for a business and what that means for your future income. If you deduct a lot of expenses and don't show a lot of income on your taxes, you could have difficulty even with the large down payment. I'd recommend trying to build a relationship with a bank in person so that you can talk through and explain some of these pieces. Credit unions will usually be more lenient and also provide lower interest rates. Though I would expect a slightly higher interest rate because of those two other points as the risk is higher. Hopefully, fingers crossed it won't be an issue and they'll just approve you. Don't really know until you try a couple banks and see what they say. Good luck!
 

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Why are you buying a superleggera when you only have 70K saved. Why not buy an older G or a gated manual for around a hundred. Put 70 k down , finance 30K and pay off in one year. I only pay cash for toys. Period. If you cant find a car for the cash you have then finance only a very small part. You are going to have upkeep,insurance and maintenance as well. Buy less of a car for your first one. It will be every bit as exciting. You can always trade up. Dont saddle yourself with 100K in debt on a toy. Lee
 

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Why are you buying a superleggera when you only have 70K saved. Why not buy an older G or a gated manual for around a hundred. Put 70 k down , finance 30K and pay off in one year. I only pay cash for toys. Period. If you cant find a car for the cash you have then finance only a very small part. You are going to have upkeep,insurance and maintenance as well. Buy less of a car for your first one. It will be every bit as exciting. You can always trade up. Dont saddle yourself with 100K in debt on a toy. Lee
It’s not a matter of not having the full amount to pay for it, but it’s a matter of not wanting to tie up $170k into something that won’t generate me any income. I’d much rather only pay $70k up front and then use the $100k to go towards my business, or passive income that can help pay for the car. At this point I’m not interested in paying cash for something where I can put that money into better investments.

@TheYellowCarGuy thank you! I’ll check out Credit Unions- appreciate the input!
 

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Why are you buying a superleggera when you only have 70K saved. Why not buy an older G or a gated manual for around a hundred. Put 70 k down , finance 30K and pay off in one year. I only pay cash for toys. Period. If you cant find a car for the cash you have then finance only a very small part. You are going to have upkeep,insurance and maintenance as well. Buy less of a car for your first one. It will be every bit as exciting. You can always trade up. Dont saddle yourself with 100K in debt on a toy. Lee
Yeah, this is a very singular point of view. I’m a fan of borrowing if it’s done intelligently. Cash is always king, but borrowing can also allow someone to enjoy the car they want and still have their money working for them in other avenues.

However, you may have to consider a cheaper car as a point of entry in order to work your way up. You’ll want to still get a large loan on it. But you aren’t there yet, still worth a shot now and see if you have to go down that route.
 

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1) It starts with where you intend to finance from. Dealers tend to use auto enhanced scores, banks tend to use standard scores, and some places do their own thing. Your history will play a big part here. Once you start building history, and working up to higher payments no questions are asked. In 2007 my first car loan was 200 a month, now I have payments up to 3100 a month. It just all depends.

2) It depends again. With self employment I’ve seen more tax statements provided that show consistent income. I personally use yearly tax documents as my “monthly” income can vary a lot. While end of year is a better picture for the lender giving me the funds.

Good luck, and I’ve always personally financed all my cars. Especially when banks these days hand out loans with stupid low APRs. Plus financing really helps predict cash flow, and manage everything really well. I have a good year? Pay an extra 10k. Or 20k. Sometimes a bad year happens and I only pay minimum due. Just have to start slow, and have fun. Note, I always cap down payments at 20% as well.
 

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You will not get approved for 100k if you’re maximum loan is 25k. A dealer might get you approved for 50-60k but that will be the max. Big down payment or not is irrelevant. What you should do is apply somewhere and see what they give you before you waste more time.
PenFed is fast and easy and loan up to 100k regardless of year. Try there and see what they counter you with when you ask for 100k.

Good luck.
 

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I know my opinion will not be popular but I don’t believe in financing.

As you mentioned that you were trying to grow your business and bring your fiancé onboard as well, it sounds like you have your hands full. Personally I would concentrate on the business and wait a bit until you have more financial breathing room to buy a Lamborghini.

Another component of growing a business is that sometimes limited time opportunities arise that can considerably boost your business presence. Those opportunities however may require instant cash that you may not have if you borrow for a vehicle now.

Wishing you only the best with your business and future husband.
 

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I have to agree w/ JrMint. I don't see you being able to get approved for 100k when the most between you two was 25k. The percentage of jumping up from 25k to 100k is a big increase. I'd say you'll need to get more money down and they'll say 65k max. Of course also depends on a number of things. Monthly income and current bank statements.

Good luck on your purchase. Keep us posted :D
 

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I work in Auto Financing. Your previous largest loan is likely to have little bearing on the approval - its about PTI (payment to income), credit score, and length of credit use. Dealer is fully motivated to get you financed, they'll likely make 2-4% on the loan balance from you (E.g. 100k loan will pay them $2,000-4,000).
 

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Dozens of threads on purchasing vs financing, each with slightly different angles. So many different ways to look at the same puzzle.

For starters... Congratulations! Your dream is getting closer. Exciting times!

My answers to your questions:

1) Yes, your auto loan history is considered by lenders. I have had multiple six figure car loans, and Lambo financial would still only finance me up to $300 k. I got the impression that it wouldn't have mattered if my income was $10 Mil a year, they still want to see car loan history. If you want to have the option of financing larger and larger purchases in the future, building a credit history specific to the type of credit you seek (auto, business, etc) is advisable.

2) My experience is that tax-returns are more important than pay-stubs, but you will have to provide both. I think they wanted 3 months. Ultimately the lenders are trying to validate the amount and consistency of your income, compare it to your financial liabilities to make a determination on your credit worthiness.

3). "Any other insight you have...". This is where you get in trouble with all the "if you have to borrow a dime you're an idiot" perspectives. lol. At any rate, I would do some shopping for a loan, but don't let 4 or 5 different companies run inquiries on your credit, as they show up and impact your score. I don't think it's a huge impact, but still irritating.

Good Luck!
 

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At any rate, I would do some shopping for a loan, but don't let 4 or 5 different companies run inquiries on your credit, as they show up and impact your score. I don't think it's a huge impact, but still irritating.

Good Luck!
FYI, if you have them all pull your credit within 30 days or so it'll all show up as one "impact" to your score. This is built into the credit score algorithm as they know the person could be shopping rates and banks before the purchase. What I wouldn't recommend is applying for a loan every other month as that will have a pretty negative impact on your score. :)
 

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+1 for financing if you can get a low fixed rate.

Another point I'm not sure has been mentioned is the age of the car you want. I don't think you'll be able to get a considerable loan on an 8-10 year old vehicle.

Good luck to you and this dream. If you try and it doesn't work out keep working, saving, and try again. Never give up!
 

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I just sort of went through this. Normally pay cash for my cars. only auto loan i had was 10k. It was VERY hard to get a big loan. I had to lower down to 65k from 100k loan.

I hardly had to show any proof of income. just said "im an engineer and make this much"

Penfed was who ultimately came through for me.
 

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I know my opinion will not be popular but I don’t believe in financing.

As you mentioned that you were trying to grow your business and bring your fiancé onboard as well, it sounds like you have your hands full. Personally I would concentrate on the business and wait a bit until you have more financial breathing room to buy a Lamborghini.

Another component of growing a business is that sometimes limited time opportunities arise that can considerably boost your business presence. Those opportunities however may require instant cash that you may not have if you borrow for a vehicle now.

Wishing you only the best with your business and future husband.
I totally agree. I am not adverse to any financing that makes me money. However , financing toys is not that. I have been self employed for 38 years and seen many ups and downs. Save your cash for the business. Spend DISPOSABLE income on toys. That way there is just pure fun and no worries. There is a reason lenders do not like to loan high balance credit to borrowers with no credit depth. You are high risk to them regardless of your score. Buy a less expensive car and enjoy the heck out of it. If and when the economy turns down as it always does, you will not be strapped with a big payment and a car you may have to liquidate.
 

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My point exactly. The OP can obviously pay cash albeit a little older and not as racy model. It would still be amazing. Learning when to spend and when to save is an important step in building substantial wealth. When I was younger I always spent first. I missed a lot of opportunities due to that.
 

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Aubrey, we don’t know your situation near enough to give sound financial advice. That said, debt can be used as a great tool; it can also be used as a great and crushing hammer. Do you own a primary residence with a mortgage, are you self-employed such that you may need business opportunity debt, do you have enough reserves elsewhere for at least 12 months of unexpected income loss, could you survive a sudden large medical bill or lawsuit? those are critical components to your quandary. Current income is nearly irrelevant in the quandary as this type of luxury vehicle expense should not be paid for by income but by excess, liquid, disposable cash.

You mentioned being a teenager not many years ago and now being engaged, so unless you are born into wealth or independently wealthy already you should consider other facets in your life long before an exotic toy car. The decision to finance or to buy with cash has very much to do with the rest of your financial picture. It would be absolutely unwise to use limited credit resources to buy a depreciating asset if you expect to need financing in those other areas. I can say, barring vast sums of wealth somehow obtained in your 20s, you should not be buying any exotic car unless you can pay cash — and by cash I mean absolutely disposable cash that will have no negative bearing on the rest of those life decisions. We were all Dreamers and all would love to have bought exotic beautiful cars in our 20s or 30s or 40s or whenever, but unless one is well-healed financially and set up in those other areas it would be unwise. Same with boats, exotic vacations, expensive jewelry and clothing and other luxury goods that won’t help you get to the next level in life.

not at all trying to burst your bubble but trying to illuminate that a little bit of extra savings and investment discipline with smart decision making in your 20s as a young couple will likely pay vast sums in the future, whereas a little bit of luxury spending before it is fully earned can be significantly detrimental.

again, we and certainly I know not enough about your particular situation to opine but other comments above and my own should be chalked up as wisdom from those who have gone before you. Good luck with your decision.
 

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You will not get approved for 100k if you’re maximum loan is 25k. A dealer might get you approved for 50-60k but that will be the max. Big down payment or not is irrelevant. What you should do is apply somewhere and see what they give you before you waste more time.
PenFed is fast and easy and loan up to 100k regardless of year. Try there and see what they counter you with when you ask for 100k.

Good luck.
Can you go through pen-fed if you're not a services member?
 
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