Bugatti. Lamborghini. Corvette. Porsche.
These are just a few of the models and makes of cars associated with speed and luxury.
In other words, these are exotic cars.
If you’ve experienced financial challenges in the past, you might think these cars are out of reach.
That’s not necessarily the case. With a little research, you can find companies that specialize in exotic car loans. You may even be able to find a loan with little to no impact on your credit.
Read on to learn more about your financing options and how to improve your chances of financing the car of your dreams.
Understanding Exotic Car Loans
Exotic car financing options can include traditional-style auto loans and personal loans.
Exotic cars are unique in that they have the potential to increase in worth, which is referred to as appreciation. “Regular” cars tend to depreciate. The longer you own a typical car, the less it is worth.
Although appreciation doesn’t figure into the odds of your approval for supercar finance options, it is an important consideration when you decide how much to finance.
If you expect your car to increase in value, you may be able to make a smaller down payment and still be able to sell your car for more than the amount of your loan. This means that if you end up in a financial pinch, you can sell your car and pay off the loan. You may even be able to make a profit.
Another unique aspect of exotic car financing is that the length of the loan tends to be longer. This is to compensate for the higher cost of the vehicles.
The longest length for most “regular” car loans is 84 months. When it comes to an exotic car, you may want a longer loan so your monthly payments are more manageable. Some companies offer a 120 month auto loan, which is ten years. You may even be able to find a 144 month auto loan, which means you will pay on the loan for 12 years.
Improve Your Approval Chances
As you start researching your exotic car loan options, you want to put yourself in the best position possible to get approved. There are some concrete steps you can take that may increase your odds of finding the loan you want.
Repair Your Credit
If your credit isn’t quite where you would like it to be, you can take steps to improve your credit score and credit history. Your credit can seem complex, but there are strategies you can use to put you in a better position for being approved, whether you’re looking for Lamborghini finance strategies or you have your eye on another exotic car.
The first step is to know where you stand. You can get a free copy of your credit report once per year. You should get one from each of the three major credit agencies (TransUnion, Experian, and Equifax). Each agency has different information.
Review each credit report and make sure the information is correct. If you notice any errors, contact the credit agency in writing and ask them to correct it.
You can also find out your credit score, but the credit agencies typically charge for that service.
If you are behind on any of your payments, take steps to get caught up. Some creditors are willing to work with you. They may be willing to waive a payment or lower your monthly payments temporarily.
If you’re behind because of life circumstances such as medical costs or unemployment, let your creditors know. This may help you make your case for better payment terms.
Share the Load
Although it may be tempting to keep the fun of owning an exotic car to yourself, you can improve your chances by getting a co-signer.
A co-signer is someone that signs the loan with you. This person shares the responsibility of paying the loan with you. In other words, if you can’t pay, the lender will expect your co-signer to make payments.
To improve your chances, you should seek out a co-signer who has better credit than you do. You may be able to sweeten the deal by offering to share ownership of the car. Sharing an exotic car is better than not owning one at all, after all.
Make a Larger Down Payment
Making a large down payment can also make you more appealing to lenders. This is because the more you pay up front, the less you need to finance. The lower the loan is, the less of a risk potential lenders are taking, which makes them more likely to approve your loan.
Other Considerations for Exotic Car Owners
As you consider your loan options, you should also keep in mind other costs you will experience as an exotic car owner.
Your car insurance bill is likely to go up significantly, for example. Carefully review your car insurance coverage options and make sure you have the coverage you need. Although it may be pricey, it is definitely worthwhile if the worst happens to your new car.
You will also need to store your investment properly. If you don’t have the garage space in your home, you will need to pay for storage. You can opt for an outside spot or look for a climate-controlled indoor storage space to keep your car in the best condition possible.
Repairs may also be more expensive. Individual parts may cost more, and you will need to find an experienced mechanic who knows how to keep your car in mint condition.
Find the Right Lender for Your Needs
Finding exotic car loans can be challenging. You can take the time to research and contact individual loans.
A better option, though, may be contacting a company like us.
At Bonsai Finance, we will help you find the best personal loan for you. All you need to do is fill out a simple form. Our lenders will analyze your situation. They may also do a soft credit check, which doesn’t negatively impact your credit.
Let us help you get into the car of your dreams. Contact us today!