Help on Low credit score finance Porsche

Anonymous · ‎08-03-2016

I am a newbie here. Any advice would be greatly appreciated. I just graduated, starting my own business with some partners. Have 10months credit history. Fico score is between 690-700. No late payment or negatives. Too many inquiries because of opening credit cards.(total 35000limit). Currently own a 2012 BMW M3. Would like to trade that in and get a new Porsche Macan S. Want to finance. I can put the trade in value as down payment probably 30-35k or I can add another 5K if needed. I have to borrow the rest of 35-40k. Current no income because just starting up my own business. Additional income from parents are over 200K each year for recent 3 years. What's the odds?

darwin_wins · ‎08-03-2016

I would be no help but just curious if that 40K that you would be putting down is all the money you have saved?

Anonymous · ‎08-03-2016

Thats trade in value of my current car.. plus I can put another 5K down. thats almost 60% of down.

pipeguy · ‎08-04-2016

@Anonymous wrote:
I am a newbie here. Any advice would be greatly appreciated. I just graduated, starting my own business with some partners. Have 10months credit history. Fico score is between 690-700. No late payment or negatives. Too many inquiries because of opening credit cards.(total 35000limit). Currently own a 2012 BMW M3. Would like to trade that in and get a new Porsche Macan S. Want to finance. I can put the trade in value as down payment probably 30-35k or I can add another 5K if needed. I have to borrow the rest of 35-40k. Current no income because just starting up my own business. Additional income from parents are over 200K each year for recent 3 years. What's the odds?

Putting down 60% of the cost of a new vehicle would usually get you "bought" on just about anything, but the fact that you have "no income" I would think would kill ANY deal if it's in your name only. Any additional "gifted" income from your parents is not going to matter unless the vehicle is in their name too as co-owners because it's not assured over time to the loan holder.

Without judging, why would you even consider a high cost vehicle when you have "no income" and a start up business that may or may not be successful over time? You could lease a business vehicle in the company name if you need it for the business (keep track of personal vs business usage). Insurance cost on a Porsche for someone under 30 is going to be high, again it would be better to business lease it as far as insurance. If it's strickly a personal vehicle, I wouldn't think this is a good choice given your age, income, start up business, etc.

jeffm4688 · ‎08-06-2016

@pipeguy wrote:
@Anonymous wrote:
I am a newbie here. Any advice would be greatly appreciated. I just graduated, starting my own business with some partners. Have 10months credit history. Fico score is between 690-700. No late payment or negatives. Too many inquiries because of opening credit cards.(total 35000limit). Currently own a 2012 BMW M3. Would like to trade that in and get a new Porsche Macan S. Want to finance. I can put the trade in value as down payment probably 30-35k or I can add another 5K if needed. I have to borrow the rest of 35-40k. Current no income because just starting up my own business. Additional income from parents are over 200K each year for recent 3 years. What's the odds?
Putting down 60% of the cost of a new vehicle would usually get you "bought" on just about anything, but the fact that you have "no income" I would think would kill ANY deal if it's in your name only. Any additional "gifted" income from your parents is not going to matter unless the vehicle is in their name too as co-owners because it's not assured over time to the loan holder.

Without judging, why would you even consider a high cost vehicle when you have "no income" and a start up business that may or may not be successful over time? You could lease a business vehicle in the company name if you need it for the business (keep track of personal vs business usage). Insurance cost on a Porsche for someone under 30 is going to be high, again it would be better to business lease it as far as insurance. If it's strickly a personal vehicle, I wouldn't think this is a good choice given your age, income, start up business, etc.

I'm guessing the 200K a year stripend from parents & current sports vehicle isn't cheap on insurance either. The real question is, with 200K of annual income and a business you just started you should probably wait till you can pull $ from the business to prove income, save enough $ to buy it cash, or find another way to purchase the vehicle. I'm assuming the M3 was bought new right before you went off to college and is just about out of warranty?

Edit : Here's an interesting option if this is a necessity to do under your name and you truly need to finance it. I'm not sure if porsche themselves will do it, but it might be possible for you to lease the Macan S and pre-pay the entire lease upfront. I wouldn't personally do it, but have heard of people with bad credit or other obsticales like yours doing this. I'm not advocating for this, but it technically is an option.

Pro's : gets your into a car, assumingly at their best tier as there is no risk for them

Cons : anything happens to the car causing it to get totaled equals you forfeiting the lease payment you've already technically made. ( I believe, not sure if GAP is/could apply)

Porsche apparently does offer this as noted on this page http://www.porsche.com/usa/accessoriesandservices/porschefinancialservices/preferredlease/. It's called a single payment lease and usually boasts an incredibly low interest rate < 1%.

Anonymous · ‎08-07-2016

Thanks for you info!

i have been with State Farm about 5 years. Rate is less than 400 for full coverage with 1M liability.

i don't have to save cash since I have enough of them for my business. Incoming wires are deposited into my account monthly.

the reason I want to finance is that I want to build up my credit faster. I don't know whether prepaid lease will improve my credit or not. I don't have any loan right now.

I will try later this week to see if I can get approved

darwin_wins · ‎08-07-2016

I don't think buying such an expensive car is the way to build your credit.

Building credit is going to take time, so if you have credit cards, pay them monthly, get yourself a secured loan and pay it off and that should add to the mix of your credit and will raise your score.

Unless there is pressing need to raise your score, I would suggest you not buy an expensive car for *improving credit*

pipeguy · ‎08-07-2016

@Anonymous wrote:
Thanks for you info!
i have been with State Farm about 5 years. Rate is less than 400 for full coverage with 1M liability.
i don't have to save cash since I have enough of them for my business. Incoming wires are deposited into my account monthly.
the reason I want to finance is that I want to build up my credit faster. I don't know whether prepaid lease will improve my credit or not. I don't have any loan right now.
I will try later this week to see if I can get approved

$400 a month is not exactly cheap.