Do you want an advanced luxury car but don’t know how to afford it? Here are some financing tips to help you purchase your dream pick of exotic cars.
Do you dream of cruising down city streets in exotic cars, almost like you’re in a movie?
Well, with the right financing plan, that dream can become a reality. That’s right, it’s totally possible to afford a luxury car, whether you’re planning to buy a new or used one.
So, how do you go from dreaming of driving cool cars, to sitting in the driver’s seat? You’ve come to the right place. Keep reading for the best luxury car financing tips.
Admittedly, this isn’t the most exciting part of shopping for a new car, but creating a budget is necessary. There’s nothing worse than bringing your luxury car home from the dealership, only to realize that you can’t afford it.
Before you decide which car you want to buy, think about how much you want your monthly payment to be.
You should also consider whether you’re planning to put money down or take out a loan for the full price of the car. Of course, the more you can put down, the lower your monthly payments will be.
If you do decide to put money down, decide on a set amount with which you’re comfortable. Then, you can confidently go to a dealership, knowing you won’t have to put up more than you want to.
As you know, not all luxury cars are created equally. This means that the average price range on exotic cars can range by several tens of thousands of dollars.
So, before you step foot into a dealership, start by doing some research online.
Browse through a variety of different exotic cars to determine what you like. Are there certain things you consider to be ”must-have” features?
Have you always dreamed of owning a Ferrari or does brand matter less to you than other factors?
Once you’ve made a list of the most important features you want out of a luxury car, you can start to narrow down your choices based on the budget you created.
From there, determine the makes and models that fit the sweet spot of giving you everything you want for the right price. Then, you can start the fun part of going for test drives before making your final decision.
The truth of the matter is that if you don’t have a good credit history or a good credit score, it’s going to be difficult for you to buy a luxury car.
So, it’s a good idea to check your credit score to see where you’re at. If your current score is in the ”Poor” or ”Fair” range, you might need to put your car-buying plans on hold for a bit.
But, the good news is that your credit score is never set in stone. If you practice good credit habits, your score will eventually rise, making it easier to buy the car of your dreams.
If your credit score isn’t as high as you’d like it to be, but you just can’t wait to buy your car, then you might need to put down a larger down payment.
One of the ways you can control your monthly payments on a luxury car is to consider all the different options you have for loan terms.
While the standard loan terms are typically 60, 72, and 84 months, some lenders offer terms that are much longer, even up to 120 months.
Sure, this is a long time to commit to paying off a car, but the lower monthly payment, as a result, could make it the best choice for your budget.
When deciding on your loan term, don’t forget to factor in how long you plan to keep the car. If you plan to have your dream car for the rest of your life, a longer loan term makes sense.
Of course, anytime you take out a loan, you’ll have to consider the interest rate that comes along with it.
Interest rates can vary greatly, and will ultimately impact the final amount you pay for your car. Shop around for different interest rates at lending institutions and consider the benefits of direct vs indirect financing.
In some cases, indirect financing – where the car dealership secures financing on your behalf – results in a few extra percentage points added to your interest rate, so keep that in mind.
When planning to purchase an exotic car, you can’t forget that the total price you pay isn’t limited to just your monthly payment.
As with any car you purchase, there are additional fees you need to account for in your budget. And, in many cases, these fees are higher when attached to a luxury car.
For example, auto insurance is more expensive for luxury cars than for economy models. Similarly, regular maintenance costs are more expensive for exotic cars because the parts themselves are more expensive.
Before you decide to purchase your car, make sure you can comfortably afford all the added extras that come along with it.
When shopping for a luxury car, it can be easy to get caught up in the excitement that comes along with that new car smell and the feeling of getting behind the wheel of a new car.
Sometimes, that means emotions get in the way, and you end up convincing yourself to get the top of the line model that’s out of your price range.
Try to keep a steady head while car shopping and remember that the car you pick doesn’t have to what you drive forever. You can drive an amazing luxury car now while continuing to save up for the best of the best later.
Now that you know the most important aspects of financing the car of your dreams, the fun part can begin.
Contact us today to learn more about our exotic cars and how we can help you stop dreaming and start driving.