Buyer Beware: Avoid Manhattan Leasing for Exotic Car Financing
Manhattan Leasing is a boutique exotic car financing bank with offices at 3275 W. Hillsboro Blvd, Suite 304, Deerfield Beach , FL 33442 and 20 East Sunrise Hwy, Valley Stream NY 11581. Mel Steinberg is their managing principal and they are a finance company that any exotic car buyer should avoid.
I have dealt with virtually every exotic car lender in the space over the course of the last 10 years either in personally financing cars through them or securing credit for my customers. I also founded VINwiki to be a valuable used vehicle information resource and put together resources like these to empower buyers and shoppers.
There are certain bad apples that have definitely stood out over the years but none with more recurring significance than Manhattan Leasing.
Manhattan Leasing offers very similar leasing programs to Premier Financial Services and Putnam leasing. These are generally structured as 60 month open-ended leases with 30-50% balloons at the end. “Open-ended lease” (as opposed to traditional closed ended leases you see from mainstream OEM captive banks) means that you don’t get to turn the car back in at the conclusion of the finance term.
These are the issues that you should be aware of:
1 – The fees are deliberately unclear. You will see high acquisition fees, security deposits, and occasionally disposal fees that increase the cost of the loan.
2 – There are up front payments that are not actually payments. When you see the “up-fronts” or monies due at inception, there will be two payments due up front. There will still be 60 payments in the finance agreement. These two payments are simply profit for Manhattan Leasing in the deal.
3 – Your payoff is completely up to them. This is the case with any lease where you do not pay it to term but most banks treat the payoffs similarly to a simple interest loan if you decide to trade early. Manhattan is much less reasonable. I have seen loans where after 18 months of perfect payments, the payoff amount was $25,000 more than the initial amount financed.
4 – Their management team is dishonest and mistreats the dealers and people who represent their product.
As you can see, I don’t think very highly of the organization or the way they treat people. I did very little business with them due to these reasons and would only send them customers that could not be approved at banks with better lending practices and customer service, always with full disclosure of these issues.
There are plenty of excellent options out there for financing your exotic car purchase. If you have happened across Manhattan Leasing in your search, please keep looking.