How does Exotic Car Financing Work?
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- Опубліковано 28 вер 2024
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So does the same thing apply to like 5 thousand dollar cars? Say I've been working at an Applebee's for a year and 2 months and are looking for a cheap but cool car and can put more than like 800 to a grand down for like a used civic or Malibu. Would I stand a chance? I forgot to say I've never even applied for a credit card before. Probably doesn't help but I don't much LoL
Scored me a shirt and a decal pack!
I wish they taught this stuff in school. It's crazy how many people don't understand any of these terms.
I've honestly learned more by watching Rob Spaghetti and Ed "The Snake" Bolian than Dave Ramsey.
Everyone should know this, but it shouldn't be the clowns that run public schools that teach it, it should be the parents.
@@SeamHead33 if you teach the kids to parent then the problem would be solved
@@SeamHead33 I really doubt the ability of all parents to accurately teach something like this. And if they could, they probably already would. It being taught in schools is about giving everyone that opportunity to learn it and learn it well enough to apply it correctly
@@Vanilla.coke1234 and I doubt the ability of teachers to accurately teach this
I watched the video just to see what you would say. Been in the car business for almost 25 years, and you described it exactly how it is. Great, honest explanation!!!
Thanks!
Why all the BS though. Why not just have honest pricing and finance without all the shell games? Honest question.
@@joshuagibson2520 Because people will shop you. When I used to sell cars, a woman was on the phone with another dealer negotiating against me as I'm trying to sell her a car. After I came back, she says to me I found the car cheaper I'm leaving unless you can match it. Both ends play games. That's the nature of the beast.
Saturn tried the whole one set price model. We saw how that worked out. People want to "feel" they are getting a good deal. All the rebates, 0% financing, discounts, etc are smoke and mirrors to make you feel you're a better negotiator than them. :o)
@@stevevlahos1 I'm the product on UA-cam and so are you. I'm not paying and being the product.
@@stevevlahos1 sorry. I thought this was a different video on a different topic.
I was a banker for over 15 years and speaking from experience this is an incredible video.
I like to buy a car like I won a lottery 10 years ago. Wonder who told me about that.
I’ve heard that too. Wonder where 🤔😂😂
@@duke9173 sounds familiar …
When my coworkers ask how I afford my cars, I tell them I won the lottery on my 18th birthday but blew all the money. And that’s all I have left.
Banks are filled with lesbians
Honestly...people WAAAAYYYY over estimate the cost and how often maintenance must be done on most exotics....and also overestimate how much has to be done at a specialty place if any at all with as little as most drive them. Also a dealer will always have a guy that knows how to mess with the app heavily to get you approved! And a dealer doesnt approve the loan, a BANK does, and the dealer doesnt make money on the bank giving you more interest. Too many dont know that as i found out selling nice cars/trucks
Hi Ed, if you're trying to buy a car from a private seller via Bring a Trailer or something similar, are you still looking at the same type of loan products (open-end or closed-end lease) as you would if you were purchasing from a dealership? What's different in those situations?
Yes, you can generally find the same types of loan products through a pre-approval and the banks can fund a private party seller.
@@VINwiki I haven't found this to be true. I buy most of my cars private party and have almost always had to pay cash. I recently obtained an unsecured loan because I wanted to keep as much free capitol as I could for some investments. I would love to hear what lenders are giving out used car loans, because unsecured loans typically carry a higher interest rate from my experience (even with excellent credit).
@@PaintGuy Curious, what sort of vehicles have you been buying? Also, I believe premier financial would be a good place to start.
@@PaintGuy he did state in video that 5 year old plus cars are harder to financed, maybe that’s why.
As always, very well done Ed. Stop tempting me though! haha
Watching this made me think of the movie, the big short, explaining how bad mortgages were given out to people who shouldn't have them. This all based on the idea the value goes up and loaning against future value in a bubble. Creepy...
Banks are crooks.
I know I just watched a 14 minute ad for premier financial services and I don't mind a bit. Granted I came out ahead because there is no way in the world I'll ever use them but I did get to hear Ed talk 14 minutes.
I do not care to keep a car long enough to finance it as with a lease I can get a new car every 36 months. I learned the hard way that Maserati has the worst Lease offers, 1400 per month for 48 months plus 5K down is practically the cost of the MSRP of the original price all said and done.
I financed an r129 SL500 a few months ago......not sure if it was a financial win, but I'm enjoying it so its an emotional one.
Will say it again...Ed has the best voice on UA-cam 😎
Travis Bell and Doug tell better stories.
In the first minute of the video, you're stating that someone would've made a 300% ROI on the 10% down payment they made on the Lambo. Now, that may seem true on paper but beneath the surface that individual still doesn't out right own the title to the vehicle - meaning a bank/dealer/etc has loaned you that cash (likely with added interest) that the individual will indefinitely have to pay back once the vehicle has been sold.
I saw a G63 for 184k sticker with a 100k “Market Adjustment” plus crap like wheel locks making you pay 300k for a G Class if you finance
Hi Ed I'm interested in buying a Ferrari F430 2005 model with 45K miles. Was wondering if you can help me purchase it. I have the VIN and all other info which I can share when you respond. Thanks a bunch for tentatively helping me buy my first Ferrari (a boyhood's dream).
All I got out of this is to only buy cars that are 100 months old or more.
That is always a good takeaway.
Thank you for this, only person speaking truth on how exotics actually work
Even the Ad says “Ed shrewdly negotiated” 😭😭 #LifeLessons
Great! But what about Canada…? :)
What’s truly funny is the majority of people who comment you should be able to pay cash for a $350k car are making payments at 17% interest on the 5.0 mustang or 370z they drive that they didn’t even put 10% down on.
Very informative as usual. Thanks Ed!
This was just a 15 minute sponsorship ad? Got me good
So, money brings money and cars?
pretty much can skip watching the whole video as 7:29-7:49 is the only thing you need to know in how to finance an exotic car.
Lmao 😂
Awesome content as usual.
keep it up Jim :)
Excellent vid with excellent spot on information.
And Dave Ramsey 😬. Lol
I'm still a bit confused on open ended leases. I've never leased a car before. All my cars have either been financed or bought in cash.
We did a Q&A with Mitch from Premier a few months ago. Check that out.
Ed, PJ (Exotic Car Hacks), says there are ways of getting around taxes, but if you bought an exotic under a Montana LLC for example, you wouldn’t be able to get financing under a new LLC from my experience. Would you have to pay cash? Any advice to helping with the tax burden? Especially for someone who wants to get in and out of cars every 12-18 mos.
This was so helpful
I don’t even have a phone contract. I hate anything that ties me down
I guess the debate I am having is to buy a new Corvette (which would make the wife happy) or look at something I could put together with Premier to get into an "entry level" supercar. Perhaps Ferrari 360 or Lamborghini Gallardo. But in order to make that case to my wife, I guess I would need to have a phone conversation with Premier and throw out some ballpark numbers to see what the payments might look like. I assume if I mention Ed and VinWiki they will spend some time walking me thru what my best option is ?
Thank you sir
what about that TVR ?
Can't finance them until they have a US title.
Thanks Ed!
Great explanation.
I can barely afford my cell bills idknwhy the fuck I’m watching this lol. Man can dream I suppose.
Id like to know how insurance works. All of these UA-camrs buy cars with salvage titles, how are they insuring them?
You can insure anything. But you can get a car repaired, inspected and have a rebuilt title assigned. Then you need insurance to get a tag.
@@daviddavis1322 most insurance companies won't even provide liability insurance for rebuilt titles. I don't know of any they provide full coverage.
Use the Vermont registation loophole for older cars
@@SeamHead33 that works for a tag. Not insurance.
@@timp5668 yeah you get the tag, then re title in another state and it should be a clean title
i want to see ed call out exotic car rental company scammers
Might want to finance and use that cash to buy btc or something.
Anything's better than the dollar right now.
Luxury tax depending on state.
Is £640 a month good on a 52k 360 spider with 3k deposit and a balloon after 5 yrs
Yes.
Hell yeah man hope it all goes well for you man
I didn’t understand a thing you said.
I look like a middle manager "user chooser" from 17 years ago.
repeat after me Ed: "Fi nan cing" not fenancing
This is what should be taught in school instead of algebra. Real world math and finance.
The “real world math” you’re talking about is algebra. If you’d paid attention in school, you’d know that.
@@jeffstorey9147 maybe on your planet, but on earth this information is much more useful in everyday life. And I didn't ask for your lame opinion on my comment. Be gone with you troll.
I hate to break this to you, but Algebra is by far one of the most widespread and useful forms of math that anyone is taught in school..
@@Cynsham Wow. People are getting butt hurt and offended about algebra. If you didn't understand the point of my comment then you're not eligible to reply to it. Your friends under the rock miss you. You should go back and see them.
You want the clowns running public schools to teach you this? Your parents should teach you about this. Public schools can't even get the basics right, even when they're not busy trying to brainwash our kids with evil BS
i could listen to ed talk about literally anything. Talk about how to boil water or something.
ed could convince a trailer boi like me that they could afford a super car
Ed if I may ask a question my dad is completely upside-down on his Honda and still owes over 8000 dollars on it so do you have any advice if so thank you
I have to ask. How does someone become upside-down on a Honda?
Get 10% off a new 2021 car that he wants and put a few grand down.
Damn Ed, Do You Breathe????
Hey Ed!! 🙂
I think Ed is trying to sell me a car.
But...but...but...Dave Ramsey!!!
Me watching knowing I only make 50k a year 👁️👄👁️ 😂😂
Why does he keep saying financing like that
Oh fuh-nan-sing
Headache
You can finance a car and most do. The truth is you should not finance a car. It's not that you can't just that you're foolish if you do.
The real truth is that if you HAVE to finance it you need to look a a cheaper car. Financing should be looked at if you CAN write a check if needed.
Not 100% true. I could afford to buy my car cash but instead took out a loan at 2% with $0 down. Ended up putting that money into the stock market and it’s turn over $280k in 5 years. Did the same for more cars since. Not always the same type of return but if you have a low interest rate you should be smart enough to beat that rate with an investment or business deal. Focus on good credit and living in your means. A loan shouldn’t be used to buy something you couldn’t already afford it should be used to strategically use the money you already have and can afford.
why? because you say so?
I advice to just be rich enough not care about anything in this video.
I was interested to see this video, not because I’m in a financial place to afford leasing any exotic cars anytime soon but because I’m intrigued by the financial end of things. I like playing with the numbers and to hear the financial side of things is really eye opening, thanks!
Instagram has everyone thinking they deserve a Lamborghini 😂🤣
Nah, son. Instagram has everyone thinking that a Lamborghini is within reach if they work hard.
@@ennisgunns Whether it's in reach or not, no one ever got a Lamborghini by following generic advice they heard on Instagram or UA-cam, son.
This is actually a great video. This couldve easily been a full lecture in a financing course.
I work as a car salesman. All of this is golden info.
So what you are telling me Is I should get that Gallardo I've been thinking about
YES… life only comes once.
That's what I'm now thinking
@@SyncBoxer 911 GTRS! Go big
Listening to Ed talk about " Configuring your loan in Advance" in the Background I thought
"Figures Don't Lie but Liars Can Figure."
Cheers Ed, Thanks for the Shwerd Loan Negotiation tips !
You can also take the dealer's crummy rate if they are willing to give you a better price on your trade-in or something based on the money they'd be making on the spread and then immediately turn around and refinance and pay off the loan - course the dealer's don't really like that since it costs them money when they lose their kickback. I've done it before the very first payment where the dealer rate was set ridiculously high.
I always do this and immediately pay the balance in full. I got burned many years ago by paying cash up front. After I learned how financing works I swore I'd never let it happen again. All I can figure is they don't actually pay attention to your actual credit history as long as you have a pretty shiny number with no red marks because they haven't caught on yet.
Typically if you wait a short time (90 is what I’ve usually seen) to do that, they don’t get as burned, and are more receptive to repeat business where you do that. Just ask the finance manager and they’ll tell you the hold period.
So long as you make sure there isn't a early payoff fee. Because some loans have a fee if you pay the loan off ahead of schedule to prevent people from doing this and avoiding the interest.
That's some dense financial 101 stuff on a friday =0 Never thought about difference between appreciation for a leased vs bought car! Thank you
Ok I got the credit…I now understand what you are sharing in this video. So now how do I convince my wife to let me finance a exotic car? Where’s that video?
It was one of the first videos we made years ago.
@@VINwiki well now I just feel like a stupid ass for asking. My bad
Thank you for explaining all this! I’ve never had a car loan since I’ve always paid cash, but now I want a C5 Z06 (not an exotic obviously) and I’ve been trying to understand the process of getting a loan so I can build my credit for future purchases.
Idk man why would you buy old garbage Exotic cars . Rather buy a newer AMG .
I swear this is like the 3rd video on this exact same subject 😂
I think people would be shocked if they knew that the vast majority of the super wealthy use credit for their lifestyles. For example, if you have a company with share you can get line of credit based at a certain dollar to value of those company shares. And you pay that line of credit back only when those shares are sold and not beforehand. Real estate is a prime example of use debt to create wealth.
wow. thats free money lol. any other tips?
Im a Dealer and it blows my mind when people want to spend 60k on a car cash to avoid interest, a 2.9% loan is basically free money considering you can use that 60k as a down payment for a house to rent
Never spend your money if you can use someone else's. Why spend all your cash on a new vette? Borrow the money, then you have a new vette and your 80k still.
how does debt create wealth? What really is created from an iou?
I've personally seen billionaires use lines of credit to make large purchases
The thing that has always surprised the heck out of me regarding exotic car financing -- particularly if you're *not* buying them new -- is that, after an initial hit of extreme depreciation, they flatten out and don't seem to depreciate anywhere near as much as a regular car does. So a lease, being an instrument wherein you're essentially financing the depreciation over time, can result in some astonishingly affordable monthly payments.
Of course, you don't *own* the car after you're done making the payments, but you can drive an exotic car that'd otherwise be well out of your reach, if you're willing to live with that caveat.
I'd be willing to bet that a large percentage of the not-quite-brand-new exotic cars you see on the road are financed in a manner similar to this.
I honestly hated the idea of a lease because I wanted to own the vehicle, but for exotics this really makes sense. Especially when I realized I rarely lasted more than 2 years with a car.
I have a high income (200k +) and a decent credit score (720+) but here's the catch - I'm a renter not a homeowner. So I don't really have a credit history of carrying a large mortgage and in rare occasions where I do get a credit card application denied, this is cited as a reason why. How can I overcome this when looking for a 130k loan on a 2022 922?
buy a home then buy a car you have your priorities backwards
Instead of buying a house you can get duplex and then use that as leverage. The only problem I have been seeing with getting cars in your business name is who finance through. For example Ally didn’t require 6 months of business income but they were half a point higher.
@@imchris5000 Not if he or she has no interest in owning a home, the headaches that come along with that and enjoys the flexibility and mobility of renting.
Be thankful a bank is not approving you to waste $130k+ plus interest.
I would contact the sponsor he mentioned?
Thanks for making this informative and helpful video
My pleasure
@@VINwiki @12:18 How does refinancing and trade it in work?
If we don't have a comparable car loan, but instead have other comparable loans on our credit (like multiple paid mortgages), would that satisfy that requirement, if say, our biggest previous loan for a car was $30-$40k and now trying to get a $200k car?
This was intense, need more coffee
Imo the entire car industry is full of liars and borderline criminals. All of the obfuscated nonsense you covered in financing margins etc. is everything that people hate about the industry. I like cars, but have had so many bad experiences at dealers that I now just uber everywhere and the thought of ever stepping foot again into a dealership makes me shudder just thinking about interacting with those grease balls. Dealer industry really messing up imo.
I know you qualified by starting your video with this, but the advantage of buying a car with cash is that you sleep well at night. You don’t have to worry about this aspect of financial risk; which is the issue that everyone is trying to factor into the deal. I’ve seen relatively smart people get bamboozled by this sort of financial trickery. Be patient. Save. This is how I bought my 991.2 GT3 6MT at age 34.
To package this advice into a sound bite, ask, “How much?” And not “How much per month?”
Why pay cash for a depreciating asset?
@@BIGWEBB88 Have you seen how much 991.2 GT3s are selling for these days?
this is pretty much the best way someone ever explained how taxes and write off work, and I'm 19... This should be taught in school at age 12-19...
Well, time to get me a Rari 🤣
"That's why I try to look like I won the lottery 10 years ago." lol! This is what I'm trying to do too lol.
I feel like this could have been a three - fifteen second video that simply repeated "Call Premier" over and over again. That said, the wisdom is always appreciated. If you're serious about getting into one of these cars, CALL PREMIER. They were awesome, took all the time to patiently answer my questions, and didn't feel too pushy or intent on selling me a product.
zero interest deals......."THAT'S NOT REAL"
Hey Ed @vinwiki! Great video and great knowledge you passed along! I do have a question; you mentioned if the car is 10 years old and looking at older exotics, what if you’re trying to get an old air cooled Porsche for example, is it the same route? Thanks!
Great Content: This is important info for a lot of us and I am sure many of us would actually like to learn something real . This 10 mins could be 30 mins - or much more. and have Math displayed .
In my personal opinion. If you have to finance your exotic car, it may not be the best idea. Still need to factor in insurance and maintenance costs. It’s nice to have the car, but if you can’t afford to drive it …
wait.. he didn't say "So, Now that I have explained that, What's it gonna take to get you into this car today??"
I paid cash for a Miata and have fun when I drive it. Probably cause I can afford to drive it and not worry about cost of ownership and depreciation. If you can pay cash for something, you can afford it.
Thank you for explaining all of this, especially the fact that 0% APR isn’t real.
I feel like this is how things are supposed to be but I've had dealers offer me loans for all kinds of vehicles even exotics and I'm not a wealthy person. I do have exceptional credit though, close to 840...
Ed
That Georgia Tech education has done you well. Very good explanation.
Hey Ed, can you go into a little more detail about the open ended lease? In particular the process at the termination of the lease if you were to trade the vehicle into the dealer. Do you negotiate a remaining value with the lease company, then try to obtain that from the dealer (or pay the difference)? If so, does the dealer then write a check to the leasing company?
Imagine renting Ed to accompany you on your vehicle purchase at the dealership. He would negotiate a complete victory for you.
I’d pay to see this guy explain this to Dave Ramsey
Enough of the Lamborghini pics,we get it .You're a Lamborghini fan boi.
If you drive it, fly it, float it, or fu ck it,, it's cheaper to rent or lease it to your bottom line
Buys 120% off 10 year old Lamborghini. 😎
I have had my eyes on the b7 rs4
You are the man. Thank you for this amazing explanation.