Your Exotic Car Loan Questions Answered
The global luxury car market was valued at around $410 billion in 2020 and continues to grow at a swift pace. Rising prices across all segments of the automotive industry are pushing exotic car values to new heights. To get your exotic car loan questions answered best, it is important to define what an exotic car is. They can be defined as street-legal, high-performance luxury sportscars. Automakers like Ferrari or Lamborghini usually come to mind, but the likes of McLaren, Aston Martin, and Porsche also fit into the category. Remember, each exotic car is unique, thus financing and loan terms can vary greatly.
How Does Exotic Car Financing Work?
Exotic car financing has similarities in the process to daily driver vehicles. It requires an approval process and a loan written by a licensed lender. Loan types typically have more flexible terms over daily driver cars, meaning loan terms and dollar amounts can vary greatly. Many loan providers will outline what qualifies as an exotic vehicle to build parameters around lending. These parameters typically include the price, make, model, and age of the vehicle.
Can You Get a 120 Month Car Loan?
Yes, for exotic, classic, and collectible vehicles of a particular value. Woodside credit has options with even longer loan terms (up to 180 months) to achieve the lowest monthly payments. Many borrowers appreciate the flexibility of low monthly payments, and frequently pay off loans before maturity. Taking on an exotic car loan instead of paying cash may free up money for financial goals. Like lenders who finance daily driver vehicles, credit score, income, and debt will all play a role in what a lender considers creditworthiness. Top-tier or second-tier credit is typically needed for exotic car loans.
How Many Years Can You Finance an Exotic Car?
Exotic car loans term lengths are typically much more flexible than daily driver vehicles. Most exotic car lenders will offer terms up to 7 years (84 months), and Woodside offers loan terms for up to 15 years (180 months). An example of financing is a loan for $200,000 at a monthly cost of $1,742. This example is based on a simple interest loan with an APR of 6.5% and a 180-month loan term. Note that the rate and terms are subject to change and not all applicants will qualify.
How Much is a Down Payment on an Exotic Car?
Down payments vary greatly on loan type and creditworthiness, but a starting down payment is 15% for an exotic car loan. Classic cars may require even less down, starting at 10%. Exotic car loans may have additional requirements over daily driver car loans, so be sure to find a trusted lender to help navigate these requirements. Whether it is your first exotic car purchase, or you made one in the past, weigh your options to get the right loan to fit your financial goals.
Do you have an exotic car in mind? Take the first step and give Woodside a call. We give customers an idea of what it would cost to get into the car of your dreams before pulling credit. If you are in a spot to move forward, apply online to get a quick quote.