Car financing question

Justin_Jared0

When it comes to expensive vehicles priced at over 200,000 to 500,000 dollars or more, what is the car financing process?

Like for normal car buying processes with vehicles valued at under 50,000 dollars or so, the buyer must get pre-approved for that amount in loans to show their seriousness in purchasing a vehicle -- and ability to afford payments on it through being pre- approved.

After test driving cars, collecting information on them, or having them inspected or whatever, the buyer would then take steps to officially purchase the vehicle by acquiring the loan, transferring it to the car seller, paying fees for title, insurance, warranty, registration fees, and other fees and having the car delivered to their home or driving it from the dealership after receiving the keys to it and finally becoming it's owner.

But what about for vehicles priced at much higher amounts that average car loans don't cover? 200,000, 300,000, 400,000, 500,000 dollars? How do buyers get the financing for vehicles of that nature, and get pre-approved for them? How do they get financing for them if not done in the traditional way? Where do they get loans for larger amounts like the ones mentioned?

Michaell

Justin_Jared0 said:

When it comes to expensive vehicles priced at over 200,000 to 500,000 dollars or more, what is the car financing process?

Like for normal car buying processes with vehicles valued at under 50,000 dollars or so, the buyer must get pre-approved for that amount in loans to show their seriousness in purchasing a vehicle -- and ability to afford payments on it through being pre- approved.

After test driving cars, collecting information on them, or having them inspected or whatever, the buyer would then take steps to officially purchase the vehicle by acquiring the loan, transferring it to the car seller, paying fees for title, insurance, warranty, registration fees, and other fees and having the car delivered to their home or driving it from the dealership after receiving the keys to it and finally becoming it's owner.

But what about for vehicles priced at much higher amounts that average car loans don't cover? 200,000, 300,000, 400,000, 500,000 dollars? How do buyers get the financing for vehicles of that nature, and get pre-approved for them? How do they get financing for them if not done in the traditional way? Where do they get loans for larger amounts like the ones mentioned?

Justin_Jared0 said:

When it comes to expensive vehicles priced at over 200,000 to 500,000 dollars or more, what is the car financing process?

Like for normal car buying processes with vehicles valued at under 50,000 dollars or so, the buyer must get pre-approved for that amount in loans to show their seriousness in purchasing a vehicle -- and ability to afford payments on it through being pre- approved.

After test driving cars, collecting information on them, or having them inspected or whatever, the buyer would then take steps to officially purchase the vehicle by acquiring the loan, transferring it to the car seller, paying fees for title, insurance, warranty, registration fees, and other fees and having the car delivered to their home or driving it from the dealership after receiving the keys to it and finally becoming it's owner.

But what about for vehicles priced at much higher amounts that average car loans don't cover? 200,000, 300,000, 400,000, 500,000 dollars? How do buyers get the financing for vehicles of that nature, and get pre-approved for them? How do they get financing for them if not done in the traditional way? Where do they get loans for larger amounts like the ones mentioned?

My first thought is that the potential clientele for these types of vehicles - celebrities, musicians, athletes, the 0.1% - are likely to pay cash for them.

I'm sure there are financial institutions who will write loans for these types of cars, and I suspect the process is the same as if you're buying a $20,000 compact or $50,000 luxury SUV. Credit check, asset or income verification, etc. The terms may be longer and the payments certainly bigger, but really no different than buying a $300,000 house versus a $1 million house.