Financing up to 240 Months? Rizz Lending

[GT3RSteve]

I just came across Rizz Lending  and they will lend up to 240 months (20 years!!!) against Exotic and Collector cars. I'm curious to hear thoughts on whether you would do this. I figure I have a 30-year mortgage on my house, and if I'm getting a loan on a car that I believe will hold its value then why not? This will allow me a lower monthly payment than anywhere else. 

[jamied]

Yeah, it sounds cool, especially with the lower monthly payments, but over 20 years, the interest could really pile up. You’d end up paying a lot more in the long run. Plus, selling the car could get complicated if you still have a loan on it.

Might be worth just running the numbers to see if it still makes sense. And with exotic cars, the value can go up or down, so there’s that, too.

[NoMoreHate]

If I had to finance a car (exotic or not) for 240 months to have a comfortable payment then common sense would tell me I don't need that toy! If reasonable expectations show that the car will will increase in value and significantly outpace the cost, then that is another story. However, the the reality is past performance is truly no indication of future returns! 

[hdporter]

Among the factors that make mortgage loans a rational decision:

 

-- Absent a home purchase, one generally must rent a home, without the opportunity for equity appreciation.

 

-- Mortgage interests tend to be attractive.

 

-- There is a robust resale market for homes.

 

None of these hold for exotic car financing.  With a cited example interest rate of 11%, financing options are not "attractive".  If you're holding the vehicle as an investment, a rate like that will bleed your appreciation away.

 

You'd like be better off selling assets to generate the necessary purchase cadh.