Hi all,

I would like to start preparing for purchasing (financing) my first high end car in a few years and would like to make my application as strong as possible. Maybe it's strong already, but I have no idea how these things work for big time car purchases. I haven't spoken to my financial advisor yet for fear of him not understanding such a life long passion I've had in cars. Don't know if I'm posting in the correct forum but any advice is appreciated.

The car I have always set me sights on is a gt3, particularly a 991 if its a smash hit, so I'd be going through either PFS or some other bank.

I'm married well into my 30's and work as a solo health care practitioner. Net income after all business expenses last year before taxes is 180k. Year to date shows closer to 195k. There has been a steady increase, but I do not see it being considerably higher, as it is a small practice and I'm very happy with how things are. A good income, but don't know if it'll carry me. Wife is a stay at home mom.

Very strong point is that I killed off my student loans and finished paying off the practice and office building. Current debt is around 400 a month for a car lease. 2 other cars owner outright. No credit card debt or other debts.

Were about to take out a 480k loan for a home (first home purchase). Mortgage without taxes is about 2300ish. With taxes 3300ish. Credit score is around 800. Small mutual fund, some emergency savings, and a retirement account in place. I've made small contributions to my retirement, but now I can increase my contributions quite a bit now that I've cleared my education/business related loans. Will be starting a college fund for a newborn.

I flat out do not have the cash sacked away to buy this car in full. I probably never will as I plan on putting a lot in retirement and college funds. I'd really like to be able to finance the car over say a 5 or 6 year period, maybe putting like 20k or so down. I also realize cars depreciate and they're not the wisest investment, but I'm an enthusiast, and would not be purchasing for that reason. I hear a lot of people say that I'd you don't have the reserves handy to buy the car in cash, you're not a candidate. I have a hard time believing this as sole criteria.

Will a lender say he wants to purchase a car that's 2/3rds of his yearly income, is he nuts? Or will they look for a good established history/stable job, which I think I have. Do they use a particular formula for high end cars?I believe I can realistically finance the car without stretching myself thin. Our lives are pretty simple and do not include extravagant leisurely expenses. Biggest monthly expense is health ins.

I'm assuming a lender wants to see tax returns for the self employed. Any idea on how many for high end cars? Also, I do include additional deductions, such as our family's health insurance, retirement contributions, car lease, etc, which lowers my taxable income from what I stated above. I wonder if this will look badly.

Am I worrying too much or should I just go and do it when the time is right?
Thanks for any help!

 

Manufacturer financing companies are usually super easy to get financing from. As long as your credit score is good, you should be fine. They don't care about tax returns or any of that stuff.

 

2 years tax returns for self employed is plenty.....they will most likely ask for at least 1 year.

Given all the info you provided you should have absolutely no problem.

As an aside....if you can swing a higher down payment you can finance up to 70k through Penfed for 1.74% (currently)

 

Just go do it.

 

Of you need money, I can give you a loan. @ TS we are all self made millionaires so just PM member jox for financing information.

 

Seems like you have your sh** sorted.

Enjoy your new car whenever you get it

 

He is right. If you get a new or CPO'd car from a dealer than you will not need to provide tax returns. Your credit score and stated income on the application is all that is needed, I've done this so many times. The only time I needed to show tax returns and corp financials was when I bought my GT2 used from a Lambo dealership and they do the loan through Chase bank, that was a pain.
If you are concerned about resale and have a passion for GT3's, I highly recommend the last 997GT3RS. They have taken their depreciation and will probably hold value or even go up with the lack of manual trans in the new models.

You got your stuff together really well, enjoy your new ride and don't make it more difficult than it is.
Bravo!

 

If you've got your own business I'm pretty sure you can lease the Porsche and write it off as a business expense. The tax savings and whatnot literally make the car cost a fraction of your lease rate which is pretty cool. Talk with an accountant about it for sure. But otherwise the lease company shouldn't make a fuss about you leasing a GT3. Good luck!

 

Hi all,

Thanks a ton for the replies. It makes me feel more at ease. Lol @ 997black06, that would be nice! Some very loving family members thought I was dreaming a bit too big, and that had me doubting if I could swing such a purchase. After we settle down in our home comfortably, were gunna do it. Thankfully my wife is supportive. I'm going to keep a close eye out for 997.2 3's, that would be terrific! There's a glimmer of hope in my mind that there will be a MT at some point in a 991 gt3 variant, but I know that's been beaten to death on all message boards. That's a great point about leasing with the business. I have a gut feeling ill get emotionally attached to the car and will end up purchasing at lease end, but still maybe it'll work out to be more favorable?

Thank you again responders for offering your advice/knowledge. Life is short, so I'm just going to do it. Will be a dedicated regular on here at some point in the future!

 

Don't trouble yourself, I can take care of it; besides I have a sick wife in Nigeria anyway. Oh, and BTW OP, I will need an initial deposit of $50k USD to lift the hold on my bank account. Check made payable to me.