Finance For Porsche?

SPIKES · 07-20-2003, 05:55 PM

I tried PEOPLE FIRST BANK for finance as i believe they have rates of 5% or so. 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?

dean · 07-20-2003, 06:15 PM

If you own a house get a home equity line of credit. Then you can also deduct the intrest on your taxes

ruf-porsche · ruf-porsche's Garage

Most finance institution won't finance a car that is over 5 years old, because if you fiance the car for 36 month or 48 months or even 60 months the car will be 8,9,or 10 years old and they know that most car are worth squat after 6 years.

Schrup · Schrup's Garage

I went through my Credit Union, I didn't get a great rate 9.25% but I make double payments. They would lend me $3000 over what they considered it's worth $12,000. I also have excellent credit. If you are from out of the country try to get references.

Sonic dB · Sonic dB's Garage

Sounds like the issue is more one of the original posters having an established credit history.

I got my 86 financed through Peoples First. They didnt care that the car was 17 years old and was going on a 60 month financing, they just sent me a check.

Ruf-Porsche is correct however in that almost no financial instutions, other than PF, will finance a car of this age...

SpeedracerIndy · 07-20-2003, 09:12 PM

That is really suprising to hear! I got a loan through Peoples First for my 81 and I have NO credit history. I have had a credit card or two, but no house, or even a loan before. They gave me a good rate too. They must be going through some changes or something. I have been having some buyers remorse lately, but after reading that, I'm glad I went ahead and got the car.

GeorgeM · GeorgeM's Garage

Try Lending Tree (www.lendingtree.com). You'll get responses from 5 banks.

I found a home equity loan with PNC through that site.

It costs nothing and there is no obligation to even answer the offers if you don't like them.

MAS · MAS's Garage

It depends on whether the financial institution is financing a car loan or a personal loan. Usually car loans involve some kind of a lien on the vehicle, so if the car if too old, they won't finance it. However, if it's a straight personal loan, it doesn't matter what you are buying. The problem is that for many people, the amount you can borrow on a personal loan (or line of credit) is usually much smaller than available for a new car loan... at least at a reasonable interest rate.

The bottom line is, if you screw up on a car loan, the bank can always take the car.

So... $15,000-$20,000 for a new (or nearly new) Honda is much easier to borrow the average person than $15,000-$20,000 for an older 911.

-MAS

350HP930 · 07-20-2003, 10:53 PM

I had to pay high interest (10%) but I was able to finance 85% percent of my then 12 year old 930 from a small independent bank about 5 years ago.

Banks just want to be sure they won't lose their shirt if you default on your loan. A five year old honda may not be worth squat at the end of 60 payments but a 15-20 year old porsche is another situation all together.

The loan manager at the the bank who approved my loan was nice enough to investigate the value of my car and concider that I was a well to do programmer with little to spend my money on but a car (no wife or kids).

It took me a long time to do it and the payments wern't cheap but I'm glad I managed to pull it off before getting married, having a child and having the dot.com boom that stuffed my pockets go bust.

I'm not sure how stingy most banks are today about such things but just be aware that the decision to grant a loan to someone with good credit that can afford it is very subjective.

I wish you the best of luck.

SPIKES · 07-21-2003, 03:08 AM

THANK YOU for all replies.
i will try the suggestions.

911Brian · 911Brian's Garage

We refinanced our house and cashed out a portion of the total of the car. Our monthly payment barely went up and we still have plenty of equity left in the house.

jbripps · jbripps's Garage

I have 3 loans through peoplefirst. They have been excellent with the best rates around. I know that they have recently been acquired by their parent company, Capital One, who can be difficult. That is why you are probably having issues with them.

regards and good luck,

pbs911 · pbs911's Garage

Go through People First. Then do a balance transfer to a credit card that offers 0% interest on all balance transfers. Free financing. The key is you can't use the credit card you receive the balance transfer on because the daily purchases are not creditied until the balance transfer is completely paid off.

dotorg · 07-21-2003, 11:58 AM

A word of caution (especially around Lending Tree)... every time a bank does a credit inquiry into your record for a detailed history because they are looking to give you an offer on a loan, it drops your credit score 5 points. Lending tree in one swoop will drop your score 20-25 points, which is enough to drive up your rate significantly if you get turned down by the four or five bansk they try, and in many cases to deny you a loan at all.

They don't warn you about that, because the contributors to your credit score are generally not something they want widely known. Its handy having a sister who works in the industry!

Anyway, my point is basically if you've got very little credit, using Lending Tree can make it impossible for a year to get another loan because of how much it whacks your credit score.

dad911 · 07-21-2003, 12:55 PM

talk to Steve at anthraciteleasing.com - Specializes in porsche/bmw/mercedes and other specialty financing.

SPIKES · 07-21-2003, 02:07 PM

thanks once again for replies.

i have called peoplefirst and they are re-looking my application.

will heed all other advise.

thanks

jrdavid68 · 07-21-2003, 02:49 PM

Quote:

Originally posted by 911Brian
We refinanced our house and cashed out a portion of the total of the car. Our monthly payment barely went up and we still have plenty of equity left in the house.

We did this too when we refinanced - I just try real hard not to look at it as a new 30 year loan for the car.

dotorg · 07-21-2003, 03:28 PM

Quote:

Originally posted by jrdavid68
We did this too when we refinanced - I just try real hard not to look at it as a new 30 year loan for the car.

Mmmmm.... you can try real hard to think the sky is green, doesn't mean it is.

Just for the sake of anyone else thinking about doing that, a $20k car loan rolled into a house financing at 6% over 30 years is about $120/month payment for a grand total of $43200 in payments.

That sky is pretty damn blue if you ask me!

Bob's Flat-Six · Bob's Flat-Six's Garage

You might also ask if they have a milage limit on the car that your looking for a loan on. I heard some won't loan on cars with over 100K.