Financing proved that cash isn’t necessarily always the king, especially when it comes to buying exotic cars. But do most people finance exotic cars? Well, a good percentage of buyers do. Unlike traditional leases, financing allows you to keep the car at the end of the loan term, and since the buyer is not dipping into his savings, it frees up capital for other investments that potentially wouldn’t be possible after tying all that money with the car. Moreover, there is a good number of exotic car financing companies that offer favorable deals specifically tailored for high end vehicles. However, in some cases, cash is still the better option, and for some, the only option next to leasing. But before we take things further, note that we will mention how financing works through Exotic Car Trader at the end of this article.
Exotic car financing is primarily preferred by those who don’t want to tie their capital in a single investment. By financing the exotic car, the buyer usually frees up hundreds of thousands of dollars which can be used for emergencies, investments and other expenses. It also helps that exotic car financing companies offer very accommodating loan terms and interest rates. Moreover, buyers with a history of financing exotic cars can get interest rates as low as 2% making it that much more financially responsible. Financing is also preferred by buyers who don’t have enough capital to buy the car outright but still want to own it at the end of the loan term. But do most people finance exotic cars? The answer is no, and for a good reason. To finance an exotic car, the buyer needs an immaculate credit history and credit score which means it’s not perfectly suited for everyone. That said, some reputable financing companies are flexible when it comes to qualifications, and while a buyer with a bad credit history may not get the best interest rate and will need to cash out a substantial amount as down payment, it’s still possible.
If the buyer has enough capital for an exotic car and for whichever other investments might come his way into the future, buying an exotic car for cash is a better option. Primarily because that way the buyer isn’t paying any interest so the car will essentially be cheaper. At the same time, it creates a greater sense of ownership as the title goes to the buyer’s name right away instead of at the end of the loan term. Furthermore, those who don’t have a satisfactory credit history are driven into buying exotic cars for cash because the consequently high interest rates make financing unfavorable. Moreover, buying a car for cash makes it easier and quicker to sell, which is a great benefit for buyers who are looking to trade with exotic cars.
Leasing is one of the most cost effective ways of getting into an exotic car. That said, leases work in such a way that the buyer doesn’t own the car at the end of the lease. A lease makes sense because its cost is substantially lower than the vehicle’s full price. Depending on the car and the term length, the total price the buyer pays ranges between 50% and 60%. That makes it a great way to upgrade the car for a newer model regularly without tying too much money with it, and it’s a great way to minimize the depreciation hit. Plus, the lack of hassle of having to sell the vehicle after the lease is done makes it more convenient as well. However, a lease is always less cost effective than buying the car for cash or even financing it.
In the end, exotic car financing can definitely make more sense for specific buyers even if they have the means to buy the car with cash. And it’s the best way to ultimately come into the vehicle’s possession without having to pay out the full amount right away. However, other options like leasing and outright purchasing are still better in some cases so it’s all down to individual circumstances. Lastly, if you are looking to finance an exotic car, consider doing so with Exotic Car Trader. Our financing partners offer loan terms of up to 144 months, quick approvals and can even consider buyers with previous repossessions, foreclosures and bankruptcies. Or if you want to buy one of the cars we have available for cash, Exotic Car Trader provides escrow protection, delivery and first inspection. Escrow protection is also included if you sell a car with Exotic Car Trader as well as a good number of other benefits.
Exotic Car Trader is the fastest growing marketplace built specifically for automotive enthusiasts. Click below to learn how you can sell your car with us.
LEARN MORE
