Hot Rods Financing Your Dream Car Is That A Thing?

I think it was more of "a thing" during the dark default swap days. Folks were financing everything off of mortgages because the lending industry promised no end in sight. When the shit hit the fan it was in real time that it's not evenly distributed. Our market was flooded with tributes, pro tourings, mass produced sports cars and more. Those were the 1st to go and many buyers lost their shit-stained undies getting them out of their collapsed asset lists. Some buyers made out ok during that time but not on those examples. A few real and significant cars hit the market too, maybe less than 20% for a time was the kind of thing finacial institutions did recognize but the cash buyer made out like never before in less than 3 years. Some are still in 'La-La' land considering their purchase price.
Toy financing is scary. Big boats and motorhomes can give an interest deduction as additional living space so some get a wash as to out-of-pocket loss. Some don't know that and maybe threw away tens of thousands of tax deductions. Maybe an Airstream fixxer-upper would be a good note to carry for a short time especially if your lender feels good about the purchaser's credit when it's done. Again, both get living space interest deductions and the 1st might make a dollar if it went fast n cheap to refurbish. Unlikely unless you roll your own. Why all that blather above? Creative thinking. Attention to markets that surround us. And also, this is one of those topics that invite the 'Kong' to the party boldly pounding his chest about how little he cares about values or losing money. I'm ready to give you .30 on the dollar whenever you're ready knowing how much you lothe making money on this shit
Me? I don't play it but I'm deep in the game, know where some bodies are buried in a manner of speaking, know how many ways to skin a profit cat now n then, not the least bit shamed or shy to make a profit either. Out of 3 cars only one's a "keeper" and even that would change with the right offer or incentive. As a project, to fund something for 2-3 years or more? If it's a pro build you're well into 6 figures. That build you heard of for 20 grand? HE did all the work, not some shop at $75/hr. Add that up, even at $60/hr, and a "quicky" taking at least 12-1500 hours from A thru Z. It's 150-200 hours to do show-worthy paint on the average car ONCE THE BODY WORK IS DONE. That's all the insides, the blocking, the cleaning, the masking, the paint and clear (materials are $$$$),surfacing all that down and polishing, a huge job. Chassis builds ain't cheap, I just built a car for a guy with a body that cost $30K before anyone picked up a wrench. Yes, only the body, no fenders or running boards. How much is a Dynacorn Camaro? Nova? a C.A.R.S. 57 Chevy? Brookville 3W? Jeez, 'glass bodies are almost or over $7K for some of em.

Hello? Are you there? Hey guys, I think somebody passed out...

 

If you are maxing out your 401k and have assets making money for you, it's probably ok to finance your toys, with the understanding that they will be liquidated, usually at a loss, if life turns south.

If you have no savings for emergencies or plan for retirement , then financing a toy is a pretty irresponsible thing to contemplate.

 

This old car hobby is not for those without finances. Can't believe all the bad advice for someone to jump in with a high interest loan. The only worse advice would be to borrow from your 401K and pay taxes twice. The economy is not too bad right now. What if it tanks? Guess the Repo man can always come and get your financed investment.

Gary

 

Funny how this thread is a bunch of answers looking for a question.....

 

Here's my free advice, CAUTION ! Free advice is sometimes worth the price paid. If this is your dream car or you are asking about buying one, GO FOR IT ! As long as you can make the payment without risking everything, worst case scenario, sell it and maybe loose a little money. There are NO guarantee's for Tomorrow Period, can't tell you how many men through the years I've known, deprived themselves for the "family" and drop dead with a pile of cash, that the wife spent on her next husband or boyfriend. When it's all said and done, your ashes in the fire or the last shovel of dirt on your grave, it Does Not matter, if you had a dollar or owed a dollar, YOU had better have Enjoyed YOUR LIFE. To put this in perspective, average age for a male babyboomer today is 77, take your tape measure, run it out 77", slide back in 1" for every year of your age, that's what's left IF you make to 77. NOWS the TIME !

 

I got my lesson years ago, but not at my expense, I was in a hitch shop buying some trailer stuff. Guy rolls in, in a red convert, blonde in the pass seat, guy dripping gold, buys a 17 dollar part, offers credit card, card is denied, usual fuck around, finally the guy insists talking to the credit people on the other end of the phone. Counter guy gives up the phone, a screaming match ensues, credit person hangs up, now guy is livid. I look at my counter man friend, give him the nod, I pony up the 17 bucks, my friend gives him the part, life is good.
Poor use of credit kills your ability to do anything, never mind owning hot rods, I look like a piece of trash unable to buy anything, especially credit wise, but my credit score is 850, I'm the guy with the old pickup, shop full of tools, who could go to Barrett Jackson, but won't, matter of fact....the boss and me are gonna buy a motorhome on Tuesday, from an rv salesman who's still picking his jaw up off the floor after dealing with us.
Use credit wisely, it's a tool to be used to further your life, not destroy it. LeRoy.

 

Larry,don't make me fly to Canada and punch you in the nose! HRP

 

oh, I'm just talking about the loss after he sold them. he spent 30 grand on just one motorhome. he has had more than one brand new boat... now that you mention it, my estimate of loss was low.

 

And it took the self aggrandizers longer to chime in than I thought it would.

 

You're welcome to do so Danny if you can do so without losing (loosing? ) your way
Just be warned though that once you get here, I have a huge stack of sandpaper, and block sanders and a fridge full of beer.....
Can block sanding be considered shoulder therapy ?
You might not get to go home for a while
By the way this is the view right now out my front window.
All the snow was gone yesterday and this morning we are getting a wet spring dump of it
Larry

 

There's really two parts to the OP's question.
1. Is it okay to buy a car you didn't build? One already done and to your liking, but you didn't have the time, know how, equipment, whatever to build it.

IMHO, why not? Sure, buy the damned thing but as others have said, give the credit to who built the car.

2. Should you finance it? Well, can you afford it? If so, why not?

 

I had to look that up, it said "see 32n343windows"

 

Snow! Damn...... What do ya'll get, maybe a week or two of good driving weather?

 

Best advise so far! As my dad often says, "this ain't no dress rehearsal".

 

Mike, I'd hate to have to play you for a scrabble game.


..

 

He's right. Is this thread about buying an $100,000 car built by an Ass Monkee, or is it a $8,000 Model A survivor?

I could get my "dream car" on a 1/2 empty Visa Card (if the bank was stupid enough to give a loser like me a line of credit), along with a jar of subway tokens.

The Highlander restores Duesenbergs for a living. He probably would need to find James Dean's Spyder to ignite his spark.

Big range. Doesn't seam like self aggrandizement to me.

I think Dan, (the OP), was just trying to start a conversation ("discussion board"). None of his posts really indicate that he is "financing" a car himself. He likes, Mustangs, T-birds, A's. He kinda dropped the bomb and split.

So what is the question?

 

I have financed two out of fifteen HAMB-friendly vehicles I've owned over the last 45 years. One is the Nomad in my avatar, purchased for $7,500 and driven over 300,000 miles in the last 26 years. I am pretty sure it is worth more than I have in it.
The other was nice but older restoration '47 Ford coupe that I paid off several years early. It was an 8% loan, payment was $207 a month. I traded it for a '29 Ford pickup, sold the pickup and bought my '40 Ford coupe.
Only you can decide what works for you. Both the Nomad and the '47 were really good deals to begin with, and worth it to me.

 

From the answers given, I can sort of figure out what the question might be. But yeah, it did spark discussion.

My dream cars always seem to cost very little. Maybe I need to work on upgrading my dreams?

 

I did something similar 30 yrs ago. Got a 90 day full pay loan. Bought 2 57 chevys, a 59 el camino and a truck load of 57 parts including a 63 correct 425HP 409. Scared my wife!! Got em going and sold them and the parts as well in the 90 day time period. Made a few bucks and paid off the loan. I would not do it now. Profit gave me a little nest egg to move forward with to redo my wife's 55 free and clear which we still have-only loan I ever got for old cars.

 

Personally I don't see much difference in financing an "enthusiast" ride than financing a second car, rv, boat or what not. Not every one has the skill or time to build their dream ride but some are fortunate enough to earn a living that can finance it.
If you are a member of the gotta build it yourself or else club just remember that we have a good number of members who own rod or custom shops who make their living building cars for other people.

 

Yeah, that ^ . . . and please ignore the new Caddy ATS-V I just went into debt over as a daily driver to give me the time I need to get my trucks back on the road again.

 

My philosophy has always been..... never finance ANYTHING for more than 70% of its true value, especially a toy. Kind of covers your ass if things take a dive or you lose your income. At 70% value tied up in a worse case senecio you can sell (even at a loss) and pay off the debt.


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I think criminal clarified that above

Financing Your Dream Car Is That A Thing?

 

I fit the same description as you. And My wife wrote a check and paid For our place in full that day we bought it. No debts. We simply save 10% of whatever we take in. That's placed in the seed money account. If you have to finance a used car you cant afford it. Maybe Im torqued off because I don't like my saved cash to have to unfairly compete against credit.

 

OK, then 'yes'.


(cricket.......cricket.......cricket.......cricket.......)

That was ez. I wish it were that ez when my 6 year old daughter asked me how, exactly, a man gets a woman pregnant.....

 

WOW, have to admit to looking up the definition of that, pretty big vocabulary for a car guy, I'm impressed and a good example of the definition.

 

Larry,make fun of my spelling faux pas all you want,It's too darn cold where you are I have already acclimated myself to the 80 degree temperatures we are enjoying today. HRP

 

I will be 66 this fall and agree that ive got much less time left than what I have already misspent? Everyone trys to live their own life or should try to anyway. We all have different lifestyles and core concepts. So anything we read see or hear on almost any subject is simply opinions. And many folks are Quite fond of telling other folks what they Ought to do. When the only person who is allowed to actually make that decision is you. Im biased against credit because I don't like being in debt. I don't like the inflation debt causes. There was a guy came riding up on a new to him mule. The bench setting loafers commented on the mule. Then one asked how much did you pay? The Guy replied $50. The loafers all exclamed that's too much! You got took! The Guy replied it was on credit. The loafers exclamed Cheap enough Cheap enough! Now what was the question.

 

I financed my first ride, I didn't have much money and I didn't want to spend 5-6 years building one (I was 18) so I bought it and paid it off in 6 months. There isn't anything wrong with financing a car, lots of guys do it just don't go tearing it all apart to build something cooler out of it until it's paid off.

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One hard fact when you buy anything on credit its not yours. Until you make that very last payment its not really yours. Until its paid off you are nothing more than a glorified renter.