Finance For Porsche?
07-20-2003, 05:43 PM
#1
Rennlist Member
Thread Starter
Finance For Porsche?
I tried PEOPLE FIRST BANK (see other post under this heading) for finance and although when i spoke to them by phone all seemed to be good.
submitted application and was turned down....my credit rating is excellent but they need 5 years history.
are there any other institutions like them out there that will finance?
submitted application and was turned down....my credit rating is excellent but they need 5 years history.
are there any other institutions like them out there that will finance?
07-22-2003, 06:52 PM
#4
Rennlist Member
Spikes,
I'm a bankruptcy attorney, so I deal with the auto finance industry on a daily basis. I take it from this subject that all of the mechanical problems you were concerned with on your earlier threads didn't scare you away from buying a 964.
As for bankers, I can tell you that on a 9 to 14 year old car, they are lending based much more on your creditworthiness than on the value of the car. Given that the car is a sports car to boot (prone to high maintenance costs and being wrecked), the bottom line is that you should plan on putting a big down payment on this car (especially if you have little credit history or less than perfect credit). So, let's say you found a nice 964 for $20,000, I'd say that a bank will probably want you to put down 25% of your own money, and they might want to see that you've got still got some more money saved up for sales taxes, registration, insurance and the inevitable unexpected repair cost that comes with almost every used car purchase. So, to buy that $20,000 car, realistically you should have around $8,000 ($5,000 down payment and $3,000 in reserve). Plus, of course, a steady paycheck with at least 6 months on the job.
Once you've got all of those things lined up, then you are ready to take a trip to the bank to apply for the loan. If you aren't quite ready yet, I would suggest making the best use of the delay (while you save up your money) to establish a relationship with a local bank. Get to know a loan officer and let that person know what your goal is. Then, when you are financially prepared to make that purchase, you'll have an advocate rather than a skeptic taking your loan application.
By the way, you may not want to hear this, but here goes anyway, I've seen many, many people put themselves into bankruptcy by overextending on a vehicle purchase. I've done about 2,200 bankruptcies, and vehicles are right behind credit cards as a leading cause of bankruptcy. I'd suggest being a cash buyer for your car (save the whole purchase price and skip the loan). Take that $8,000 that you saved up and buy a decent 911SC. I know that you'll have to bargain hunt pretty hard to do that, but then a low budget may force the seller of your car to come down to your price rather than allowing you to cave in and pay a higher price because you really want that car. Anyhow, enough with the mothering. In a nutshell, establish a relationship with a local bank or credit union, save up a significant downpayment and happy shopping!
I'm a bankruptcy attorney, so I deal with the auto finance industry on a daily basis. I take it from this subject that all of the mechanical problems you were concerned with on your earlier threads didn't scare you away from buying a 964.
As for bankers, I can tell you that on a 9 to 14 year old car, they are lending based much more on your creditworthiness than on the value of the car. Given that the car is a sports car to boot (prone to high maintenance costs and being wrecked), the bottom line is that you should plan on putting a big down payment on this car (especially if you have little credit history or less than perfect credit). So, let's say you found a nice 964 for $20,000, I'd say that a bank will probably want you to put down 25% of your own money, and they might want to see that you've got still got some more money saved up for sales taxes, registration, insurance and the inevitable unexpected repair cost that comes with almost every used car purchase. So, to buy that $20,000 car, realistically you should have around $8,000 ($5,000 down payment and $3,000 in reserve). Plus, of course, a steady paycheck with at least 6 months on the job. Once you've got all of those things lined up, then you are ready to take a trip to the bank to apply for the loan. If you aren't quite ready yet, I would suggest making the best use of the delay (while you save up your money) to establish a relationship with a local bank. Get to know a loan officer and let that person know what your goal is. Then, when you are financially prepared to make that purchase, you'll have an advocate rather than a skeptic taking your loan application.
By the way, you may not want to hear this, but here goes anyway, I've seen many, many people put themselves into bankruptcy by overextending on a vehicle purchase. I've done about 2,200 bankruptcies, and vehicles are right behind credit cards as a leading cause of bankruptcy. I'd suggest being a cash buyer for your car (save the whole purchase price and skip the loan). Take that $8,000 that you saved up and buy a decent 911SC. I know that you'll have to bargain hunt pretty hard to do that, but then a low budget may force the seller of your car to come down to your price rather than allowing you to cave in and pay a higher price because you really want that car. Anyhow, enough with the mothering. In a nutshell, establish a relationship with a local bank or credit union, save up a significant downpayment and happy shopping!
