As a teen, Jill became interested in exotic cars. She’d admire them as she tooled around LA and dreamed of driving a car, like a Porsche or Lamborghini one day. She loved learning about the history behind the cars and combed over the details – engine, interior and exterior features – both on websites and in magazines.
Could she make her dream of driving a luxury auto come true – one that caused people to stop to appreciate the car’s streamlined good looks and sleek driving performance and upgrades?
Her interests and ideas inspired her to finally explore the car lease marketplace. She learned more about how an exotic car lease worked.
Knowing how the lease was set up and its benefits made it possible for Jill to realize her long-imagined dream – driving a beautiful red Lamborghini.
If you would like to know more about leasing an exotic car for yourself, you’ll find the benefits are amazing. Let’s look at the advantages.
Take Advantage of Subprime Lending
Whether you lease or buy a car, you may worry about your credit. However, don’t despair, you can still lease a luxury car and get approved.
If you lease an exotic car, your application is reviewed using five credit tiers. In other words, you don’t have to have perfect credit.
Let’s say you’re looking at a car with a purchase price of $100,000. Cars under the exotic car class range from $100,000 to as much as $5 million in price.
You may feel a little nervous about doing so as you’ve had some debt issues in the past. Plus, your credit score is limping along at around 600. However, you can still make a comeback – thanks to subprime lending.
Subprime Lending Tiers
Subprime lending allows people who wish to drive an exotic car a chance to do so. They begin at tier 2 and go up to tier 5. Below are examples on how credit tiers work.
Tier 2 Guidelines
Again, a subprime leasing program begins at tier 2. If you’ve been turned down with a higher credit score and show some minor slow pays, you can still apply at a tier 1 rate plus 2 points.
Subprime lending allows both the lender and borrower to make a deal where the equity is leveraged so both parties ultimately come out ahead. It’s a win-win transaction for people who commit themselves to a lease agreement.
Tier 3 Requirements
Let’s say that you’re a tier 3 applicant and your credit score is 670. In this case, you’ll pay 4 points above tier 1b, provided you put 20% down. Any prior credit problems should be at least 3 years old. A bankruptcy, tax lien, or divorce is allowed, provided, in the interim, you have shown a good repayment history.
Tier 4 Calculations
If you’re at tier 4, you’ll pay, on average, 7 points over tier one rates, as long as you have a 35% down payment. Your credit score should be at least 600. Also, you cannot be past due on current bills nor have open tax liens, a bankruptcy, or be behind on child support
Tier 5 – Getting Your Feet Back on the Ground
If you’re on the tier 5 level, you’ll need to put 50% down and, in most cases, be responsible for a 12-month prepaid lease before making an upgrade. You’ll also need to show some equity at the end of the lease term.
If you’re a green card holder or have had some prior problems with bills or credit, you can regain your credit standing and still drive an exotic car by using this approach.
Avoid the Costs of Depreciation
By leasing a car, you can get rid of long-term depreciation worries as well. That’s because you’re only responsible for the car during the lease term. You don’t have to worry about losing the car’s value through depreciation.
Monthly lease payments are lower because auto financing covers the car’s full cost. At the end of the lease, you’ll turn in the car, based on its wear and tear. If you take care of the vehicle, this shouldn’t present a problem.
Drive a Newer Model Car
Leasing versus owning is beneficial as it allows you to drive a newer model automobile. You can also stay ahead of technological improvements and enjoy the latest must-have features. You can do this while side-stepping the steepest part of the depreciation curve – known to impact the value of newer automobiles.
Final Thoughts
Smart drivers see the advantages of leasing versus buying an exotic car. If you want to drive the latest luxury car and keep your costs low, you owe it to yourself to scrutinize the benefits of an exotic auto lease. Do your research before you make a leasing or buying decision.
