Tuesday, June 30, 2009

10 things you should say when buying exotics: Exotic Car Examiner auto shopping advice (part 1)


It's equally as important to know what not to say to a salesperson who is vending a product that is under $100,000 as it is to know how to establish an honest, comfortable, trusting, and long term working relationship with a car salesman who works exclusively with luxury high-line automobile products (that can reach millions of dollars per automobile or car collection). Real exotics dealers are sales professionals looking to retain you as a client for a long duration. They expect customer loyalty from you and in return will provide exemplary service. If they don't know you or trust you as a professional friend or private person, they can't adequately represent your highest and greatest good when it comes to making investments. Of course, there are always those dealerships who offer "bad apple" salesmen or "poor management style" exceptions, but for the most part, the exotic car world is a small niche market industry where each group or executive relies on gaining business from word of mouth reputation. A few quick phone calls to exotic car owning friends should quietly steer you in the right direction regarding finding the right sales people who can access the type of inventory you want to purchase and are trustworthy to work with on a long-term basis.


Working with an exotic car dealer, do the OPPOSITE of what Foley suggests: disclose the exact range of low payment terms ranges you would like to remain in to keep your monthly car budget kept in check. Let your sales adviser work with the F&I department to suggest your range of alternatives.

If you are a serious buyer interested in making a payment arrangement with your exotic car dealership, your sales person should actively be shopping for the lowest payment and best interest rates around. A good dealer will tell you that the options you have will depend on your credit. Based on your scores, a dealership can offer to extend payment terms up to 12 years while keeping a low rate of interest. Whether you choose to finance for one year or ten, you won't be hurt with interest the way you are at regular dealerships -- interest rates on long term loans may increase, but typically not by more than 2 or 3 points from where you started.

Rate of depreciation will also be different for an exotic car than it is for regular vehicles. Based on care, mileage, and model, some exotic cars will even sell within the first two or three years of purchase much higher than they were priced at MSRP. To that end, you will want to be sure you work with an experienced and highly qualified sales professional who is well acquainted with the shifting supply and demand schedule of exotics. A good car person can steer you in the right direction to buy an investment grade automobile rather than simply making an impulse buy or "best deal today only" purchase.

Leasing is oftentimes an attractive option when an exotic car value is expected to decline. Though you might have to come up with a more significant initial out of pocket expense [than you would pay as a deposit on a credit term purchase (often financed at 100%)], you can get that payment to where you need it. In addition, if you lease the vehicle you may be able to write a portion of the cars use off as a business expense if you use the car as a transportation vehicle for business travel or are able to sign or show the car as a moving advertisement (allowing a marketing expense deduction for your small business).

Source: The Examiner

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