Auto loans for exotic cars usually differ from standard car loans, and you may need to go to a specialty lender to find one.
Exotic cars are high-performance, valuable cars that usually come with big price tags
Car loans for exotic cars may have much longer loan terms than traditional car loans
You’ll need excellent credit to secure an exotic car loan
Car loans work much like any other type of secured loan — you borrow money from a lender to buy your car, and then pay back the loan, plus interest, over an agreed-upon time. But what if the car you want to finance isn’t a mild-mannered sedan or crossover but a top-of-the-line exotic car, like a Lamborghini or a Maserati?
It is possible to get an auto loan to buy an exotic car, but, because of the especially high price tag on these rare and valuable vehicles, exotic car loans differ from the standard car loan you’d need to get a new Toyota Camry or a Subaru Outback.
Auto loans for exotic cars usually have long loan terms and may have strict financial requirements for borrowers. Buying an exotic car will be pricey no matter how you do it (and yearly maintenance will likely be a big expense) so it’s best to do your research before you go out and get the McLaren or Bugatti of your dreams.
There is no clear-cut definition of an exotic car, or “supercar,” but generally, exotic cars refer to the most high-performance, powerful and rarest cars on the market. And not every luxury car is an exotic car. Most Americans drive cars that are mass-produced and widely available, but exotic cars are cars that are expensive, often foreign-made and aren’t available at your average car dealership. They’re also defined by their super-powerful engines and distinctive styling.
High-performance foreign cars from names like Lamborghini, Maserati, Bugatti, McLaren, Bentley and Aston Martin are considered exotic cars. So are cars that are manufactured in limited quantities, like the Dodge Viper or Corvette Z06.
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When shopping for a standard car loan, you typically have a number of options — you can go to a bank or credit union or get a loan through a car dealership. Your loan amount might be for $20,000 or $30,000, over a loan term of, say, 24 to 72 months. That would put your monthly car payments around several hundred dollars a month.
But with an exotic car loan, the purchase price of the car is so drastically different from the price of a standard car that the loan is going to look different too. The loan amounts for an exotic car may be anywhere from $20,000 to $600,000 — or potentially even more.
And because the loan amounts are so high, so are the loan terms, or the length of time you have to pay off the loan. Car loans for exotic cars may have loan terms of up to 10 or 12 years, much longer than the terms of standard car loans and the monthly payments will likely be more than $1,200 a month.
To find loans like these for exotic cars, you may have to go to specialty lenders that deal with collector and exotic cars. These lenders may have especially stringent requirements for borrowers, including tougher credit score standards than typical lenders.
If you’re looking to finance an exotic or performance car, there are several lenders that specialize in exotic car loans, like Woodside Credit and J.J. Best Banc & Co. Specialty lenders come with the benefit of years of experience with exotic cars, and they’re used to working with expensive and rare vehicles.
However, as we mentioned above, they’re unlikely to lend to buyers with poor, or even average credit. Specialty lenders may also have a list of makes and models they’ll finance, so if the exotic car you want isn’t already on their list, you may not be able to secure a loan.
Going through a traditional lender may not be an option for buyers hoping to take home an exotic car — many banks and credit unions won’t offer a car loan that will cover the cost of an exotic car. But another option is to finance through an exotic car dealership, which may offer multiple financing options. But make sure to shop around and understand your options before you settle on a loan offered through a dealership.
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Anna Swartz is a Managing Editor at Policygenius, where she has been since 2018. An expert in home, auto and renters insurance, she loves making tough concepts easy to understand and helping readers feel confident about their insurance options. Before joining Policygenius, she was a senior staff writer at Mic. Her work has appeared in The Dodo, AOL, HuffPost, Salon and Heeb.
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