Staying in the Fast Lane:
Shifting Assets Can Put You in the Driver’s Seat
Traditional lending can be a tedious process at the best of times. Spending hours with dealers and lenders on the phone is precious time you’d rather be doing pretty much anything else. As banks come to a grinding halt, entangled in processing government programs, it feels like many of the usual routes for leasing are riddled with potholes.
Private lending is a little-known option flying under the radar. Firms like Manhattan Funding offer quick and contact-free options to finance luxury vehicles. Buyers can avoid red tape and avoid common hurdles, enjoying a quick, hassle-free process – the car shouldn’t be the only thing that’s fast, right?
But what does an open-ended loan with a private lender look like and how does it work? We’ll be covering the best-kept secrets of luxury car leasing you didn’t even know you didn’t know.
What exactly is leasing?
When you’re talking about vehicles, leasing is basically an agreement between a driver and a lender where the driver pays a monthly fee based on the depreciation of value of the car in order to borrow it for a set period of time.
For a lot of luxury drivers, leasing is a great option. They can easily trade out (or up) at the end of their term, and monthly payments can easily be equal or less than a regular payment on financing a purchased vehicle with far less curb appeal.
How does a private loan differ from a traditional loan?
Private lenders weigh the value of luxury assets to guarantee your loan. Collateralizing what you already own, they’re able to provide you with flexible terms that meet your needs – whatever they may be. Eliminating the need to report to credit bureaus, your business remains discretely between you and your lender.
Working with an independent firm also doesn’t require the same mountain of paperwork and private documentation as FDIC-accredited lenders. Banks are first and foremost worried about how lending risk affects their bottom line. Their priority is brokering a deal that looks good on paper, taking up precious time no one has enough of to want to waste.
What is open-ended leasing?
An open-ended lease combines the flexibility of financing with the tax advantages of leasing. As a lessee, you have the ability to terminate your lease early by paying it off or even switch the vehicle you’re leasing at any point in time. Whether you wish to own your vehicle at the end of your lease or upgrade to something new, this style of lease is an ideal option.
Another little known benefit of an open-ended lease is the ability to substitute collateral anytime you like, without penalty. If upgrading, the lessee may end up having to pay the difference in value between the two vehicles only.
Open-ended leases allow private lenders to get creative. They’re able to tailor terms for any complexities or financial portfolios that traditional banks may not even be willing to work within the first place.
What are the advantages of leasing through a private lender?
The advantages become much more significant when you’re talking about leasing a luxury vehicle. Many banks won’t lend on more expensive exotic vehicles and monthly payments are regularly lower than when financing, making higher-end vehicles all the more attainable.
Lease payments are factored by taking into account the vehicle’s depreciation value for the period you agree on with your lender – not the value of the car itself. During times of economic unrest, this is a particularly attractive upside.
Another benefit often overlooked is that luxury vehicles are under factory warranty, often up to at least 50,000 miles. Barring any extreme situations, luxury vehicles will rarely need maintenance beyond what would be covered by the standard terms of the warranty.
Eliminating interaction with credit bureaus, buying your dream car also means eliminating reporting on your credit. Your new car won’t have any effect on your credit, regardless of whether you’re maintaining, building, or rebuilding.
What are the disadvantages?
The main disadvantage of leasing a vehicle is that, after the term is up, you have to decide if you want to keep your car or go find your next dream car! The name of the game for private firms is ‘flexible’ – they’ll give you all the info you need to make this decision and change your terms as you like.
A private loan sounds like it’s for me, now what?
Well, at Manhattan Funding, it’s going to look a lot like a quick, easy phone call. You work directly with one of the managing partners, so they can walk you through the entire process quickly and smoothly (they’ve been in the business a long time, so they know exactly what information they need to be able to get you into the vehicle you want). Using their combined resources to your advantage, the partners have an efficient process that works. In some unique cases, you’re able to have keys in hand that same day.
In a year that’s been full of roadblocks, everyone is looking for the right set of directions to maintain their course. Private lending is faster and more flexible than any of the alternatives, getting you where you want to go fast while still being able to take the scenic route. Private leasing is the fast-track option for acquiring any exotic car you’ve been dreaming of.
About Manhattan Funding:
Founded in 1975, Manhattan Leasing is now Manhattan Funding. Offering high-end, exotic, and vintage car leasing as well as full-service acquisition. Our seasoned team of partners brings decades of experience in every facet of the automotive industry, from sales, financing to factory relationships.