McLaren Life banner

Premier financial services - Good or Bad deal?

20K views 26 replies 9 participants last post by  Behemoth 
#1 ·
Hey Everyone,

I was recently approved with Premier financial services on my first Mclaren purchase and I have a few questions.

* Has anyone used premier financial services? If so how was the experience?

* Can someone review my deal to make sure everything seems good? For background I never had a loan over 60k before. Hence the higher Cap reduction.
Gross cap Cost - $155,000
Cap reduction - $40,000
Adjusted cap cost - $115,000
Terms - 60 months
Base Monthly - $1379
Purchase Option - $60,000


* Can I negotiate anything on this deal?

Thanks in advance!
 
#4 ·
At this price a credit union should do a standard loan for around $100k pretty easily. If you are already putting down $40k in cap reduction you could probably go that route also. I got approved for premier but the rate was higher than factory lease program (car was new).
 
#9 ·
since we are discussing an open ended leas (which i had entertained prior to picking up my 600 on a closed end)

what happens if this car is in an accident, and obviously the value drops, when you go to give back the car?

sorry to partially thread jack OP, but maybe we can all learn something here.
 
#10 ·
since we are discussing an open ended leas (which i had entertained prior to picking up my 600 on a closed end)

what happens if this car is in an accident, and obviously the value drops, when you go to give back the car?

sorry to partially thread jack OP, but maybe we can all learn something here.
you dont give the car "back" your on the hook for the balloon payment..... either you have positive equity or negative equity when the balloon payment is due.
Its only a called a "lease" for sales tax advantages/tax write off advantages.....

I can see it being a positive only if 1. you write off the payment through a corporation... maybe its a "shop" car or whatever... 2. you end up in todays type market where used cars prices are strong...Otherwise its probably better just to do a simple finance.... But sometimes finding a lender to do more than 150k on a used car loan might be tough.
 
#13 ·
So I financed my 600LT through Premier. It was either that or a 144 month loan through Woodside Credit. Here is why I went with Premier:

1) Most importantly, I'm not going to hold the car for the full 60 months
2) With Premier (open ended lease) you pay sales tax monthly. Which saves me from paying the vast majority of the tax liability for getting into this car vs a loan
3) They amortize the lease like a regular loan, with equity and interest broken out every month. Instead of giving the car back when you're done with the lease, you just sell it on your own and pay the balance (like a loan)
4) You can still depreciate like a lease (if company owned)

If this was a 50k Mercedes, I would probably go with a credit union. Though full sales tax on $280k is no joke...
 
#16 ·
lol. thanks! but i already got a car. I did entertain the idea of an open ended lease before.. but i wasn't 100% sure on the workings..


So what happens if you have an accident, and reduces value, say 20k, and you go to give it back in month 20 of the loan? And at that point car is worth say, (210) now factoring in bad Carfax, it's worth 190.. and the amortiztion schedule at that point is say 230.. . you owe them 40k to get out?

that sounds confusing, or maybe i'am confused. LOL
 
#22 ·
Quite a few financing companies do not show up on your credit report (ferrari financial, putnam and I guess premier). This hurts and helps. It's easier to get financing from the same company in the future but other companies might not let you finance because the credit report doesn't show that you have a history of financing vehicles at this level.
 
#27 ·
So what happens if you’re in an accident and the vehicle is totaled.. in that scenario, Insurance writes a check for market value and Gap insurance covers the rest or if the insurance check is more than what you owe you keep the difference? Or do you have to pay a penalty or fees to say premier Putnam or a woodside type of loan?
 
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top