‘Flogger’ Financing Deals

[oo7ml]

Hi,

I’ve noticed that a lot of the ‘famous’ YouTube Car Vloggers, TGE, SOL, etc... seem to be financing their cars with some new form of financing? Maybe this option is not new, but just re-packed as something else?

I don’t have a problem with people financing their cars, as sometimes it does not make sense to tie up so much capital in one asset when lending is cheap... but let’s not start that debate :-)

Many of them seem to be using Darren Gibson for their Financing. A friend did contact him recently asking for an example breakdown of a particular financing option but he was not able to give him a breakdown for whatever reason.

Is it it a balloon financing option?

If so, what are the pros and cons of the option the are using.

Thanks in advance for your help.

[jjr1]

It is cheap financing purely if you refer to the deposit and monthlies. The problem is the balloon payment is not guaranteed.

Scenario 1; you buy a Ferrari ,pay very little deposit and not a lot a month. You come to sell and your car is worth a lot more than the balloon. You have a big smile on your face.

Scenario 2; you buy a Ferrari, pay very little deposit and not a lot a month. You come to sell and your car is worth a st load less than the balloon. You poo yourself and no amount of crying will get you out of the deep st amount you owe.

This form of financing is only available to high net worth individuals as they will come for you if you owe them !