Financing an exotic car isn’t that much different from other types of loans and financing deals when it comes down to the practical side of things. Each financing company has its own set of qualification requirements which are flexible to some extent. Once the buyer is approved, the next step is agreeing on interest rates, loan terms and down payments. And that’s where the biggest differences come from between exotic car financing and standard vehicle loans, financing deals and leases. Among other differences, exotic car financing companies have stricter qualification requirements while loan terms are much more generous. But before we explain how to finance an exotic car in more detail, note that Exotic Car Trader offers financing services as well and we will briefly explain how it works at the end.
Different financing companies have different qualification requirements but the general rule of thumb is that for starters, the buyer must have at least a 750 credit score. That said, some companies will put the hard credit score limit at 660. But even so, some financing companies are more flexible and will consider applicants with a lower credit score as long as other requirements are in order. Furthermore, most companies will require a down payment of 10% to 30% although there are some reputable ones that finance an exotic car without it. And don’t be surprised if the financing company requires that the buyer has a history of financing exotic cars. On a more positive note, we should mention that Exotic Car Trader and its financing partners can consider financing applicants with previous foreclosures, repossessions and bankruptcies.
Interest rates largely depend on the loan term, the financing company and the customer’s credit history. With that in mind, they can range between 2% and 15% with the average being around 7.5% for those with a credit score of over 750 or more. At 7.5% interest, exotic car financing is cheaper than the average auto loan in the US. Moreover, exotic car financing companies are fairly generous when it comes to loan terms which is what tempts a lot of customers. Depending on the financing company, maximum loan terms can range between 84 and 180 months. But most offer 144 or 96 months terms.
The biggest advantage of financing an exotic car instead of buying it for cash is that it increases the financial solvency. In other words, it leaves the buyer's savings intact and available for emergencies or investments. Financing is also one of the cheapest ways to ultimately own an exotic car for buyers who don’t have the means to buy it outright. However, financing isn’t without downsides. For starters, interest rates can sometimes amount to tens of thousands of dollars depending on the vehicle’s value and the buyer’s credit history. At the same time, financing an expensive vehicle increases the buyer’s debt to income ratio and makes it more difficult to take out additional loans.
The process of financing an exotic car is fairly simple and in some cases, extremely quick as well with some companies having the ability to approve the loan in no more than ten minutes. However, qualifications are fairly strict and it can be extremely difficult to get approved.
That said, Exotic Car Trader and its financing partners can consider buyers with previous foreclosures, bankruptcies and repossessions, with very fast approvals. And if you want to buy a car without financing, Exotic Car Trader includes escrow protection, delivery and first inspection for all vehicle purchases, among other benefits. Selling a car with Exotic Car Trader unlocks those same advantages.
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