Who doesn’t dream of owning a premium, luxurious and sporty car that makes your drives cooler? Stressed over how can you finance an exotc car? Whether it is black Ferrari or brand new lamborghini, whether it is a shiny Porsche or an all-new Audi, you would indeed want to keep one in your garage. Well, it seems unattainable and out-of-reach, there is a way to make the dreams come true. Exotic car financing makes it all possible for you!. Several luxury cars financing options are available which lets you get that favorite used exotic car you have been longing for. Dive in and know it all!
Excellent Credit is a Must
If you’re looking to finance an exotic car, it’s important to have excellent credit. Lenders will want to see a good credit score and a positive credit history before they will approve your loan.
If your credit isn’t as good as you’d like, don’t worry. According to DuPoint Registry, there are exotic car lenders that specialize in bad credit loans. If your credit is poor, you may have to pay a higher interest rate on your exotic car loan, but you can still get the car of your dreams.
When deciding on top-tier credit, 740+ credit score is the minimum requirement. Some lenders, however, do have their guidelines restricted to 700 plus credit score.
The loan that you’re looking to get should fall within 50 percent of the amount of your previous car loan at the very minimum.. For instance, if you are looking for a $100,000 loan while you have loaned $200,000 previously, the loan won’t be passed and certified under their guidelines and norms.
When it comes to exotic car financing you’ll have several different term options since the typical loan is a lot higher than your average vehicle. You can opt to extended your term up to 144 months depending on your lender and credit history. However, the conventional 48 months period is also prevalent and in practice.
The LTV( Loan-to-value) Ratio is demanded to be 80 percent. 20 percent of down payment is required although these expensive exotic cars have a high probability of appreciating when compared to normal ones over time.
Lastly, to ensure that you will be able to repay the loan, they verify it through your gross income for the year. The gross income should exceed the amount you have loaned. Moreover, the ratio of your debts to your income should not exceed 50 percent.
Not meeting some of these important requirements? Well, don’t you worry since the lenders are always going to view the whole picture. You might qualify due to a factor in which you are scoring great. There is a huge possibility of one great factor compensating for another one that is weak. If your credit is not ideal, you can go for the loan term which is comparatively shorter while going for a higher down payment.
Credit History- Another Noteworthy Factor
Well, if you have an excellent credit score, that enhances your chances but that is not all, for credit history is another major factor. Your assets should be such that they depict that your credit is all ready for this big of the loan. This doesn’t necessarily mean that you cannot have any debts or everything is cleared when it comes to finances. The lenders will look for a person as their potential one who has previously taken a loan close to this. A person who has previously taken a loan of $30,000 won’t be a potential one since $100,000 is a pretty big jump from the previous one. Along with all this, the lenders will indeed ensure that you have enough assets to repay the loan you are going to take. The analysis of previous loans together with current assets, debts, LTV ratio and credit score, all are taken into account before lending.
Keep Interest Rates in Mind
The interest rates of exotic and luxury cars have ranged up to 10 percent as said by Bolian. The average term as defined by him is about 72 months which can be extended to 84 months. 144 months can also be the case. This largely depends on the situation.
APR suggests that for every $1000, $20 should be your monthly payment. Well, in doing all the math, one shouldn’t neglect the taxes together with the fees that add about 8 percent more.
One should be aware about the interest rates which are attached with any loan. The concept of direct and indirect lending should be clear as well. The direct one is getting the loan directly from the bank while the indirect is getting the loan through a dealer. Therefore, one should ask for the buy rate in order to get a vivid idea.
Financing an Exotic Car is Easier than Ever
Thanks to the many exotic car lenders available, financing an exotic car is easier than ever. These lenders specialize in providing loans for high-end vehicles, so they understand the unique needs of exotic car buyers.
Most exotic car lenders offer competitive interest rates and terms, making it easy to find a loan that fits your budget. They also offer exotic car loans for all credit scores, no matter the state of your credit history.