What's the least dumbest way to borrow $ for a hot rod?

I'm very close to being free of credit card debt. I have been saving money to buy a nice project car. It has been my usual luck that when I see a car that's not too far away, and close to what I'm looking for, I find that it's a few thou more than I have on hand.

I may break the promise I made to myself and think about borrowing a little if I see my dream project.

For you guys that do this all the time, what is the best borrowing deal? The days of playing with credit cards keeping zero interest seem to be long gone. That's how I bought all my toys (motorcycles)in the past.

Remember, I'm an FNG, so I may be missing what's obvious to you.

 

How about a home equity line of credit? You just pay for what you borrow and you have immediate access to the money you need. The downside is you are putting your home on the line and need to be able to control your spending. Depending on the situation, the interest may be tax deductable (see your tax man).

Charlie Stephens

 

Hagerty does classic car loans....

 

lets see- I spent the last 4 yrs working 2 jobs

 

Just make sure you're paying a low interest rate, like on a line of credit. I even have a mastercard that had 9.9%. As long as you can pay twice the minimum payment, go for it.

 

Seen the show 'cash in the attic'? Usually its people that want to make home improvements or repairs. The hosts come to their house and go through their things asking if they want to keep this or that more than they want to make the improvement. Same could work to generate cash for you dream ride. Sell of another vehicle, parts, or other items you collected in the past. Sounds like you need to continue to save. As soon as you go and borrow money to put with what you have and make a purchase, you'll find a better deal or ride out there.

 

I won't borrow more than 50% of the cost of the toy.

 

all the ideas above are good ones, but this is the winner

 

If I don't have the $$ up front, I don't buy it. It's taken me 12 years to get my Hudson to where it is now, and its still not painted.

Instant gratification has ruined Americans. A little hard work will put some hair on your chest.

The only loan I've taken is my mortgage.

 

save up and sell something....
but then again im about the only 25 year old on the planet that doesnt use credit cards at all. everything i own was paid with cash so i have no payments on anything.

 

No credit and no borrowing. When you find the car you want the first thing you're going to want to do is put money in it. Look for a ride that's not so popular with the masses. Their cheaper to start and trade up till you get what you want. Save the loan for a family emergency.

 

sell a motorcycle or something, Never had a credit card or even considered it, If you dont have money or means to get something (especially a toy) don't put your home or anything on the line, I was at risk of not having enough for rent once- I sold everything except my 63 (its my only means of transport) just to stay safe- even sold my favorite motorcycle! toys are chicken shit in comparison to financial sustainability. sell a toy for a better toy, its that easy, if you don't have money for it you dont need it

 

The least dumbest (smartest), pay cash. It's really dumb to borrow against your home for a car, especially a hot rod!

 

If you have a 401K retirement account you can borrow against that ... the good news is that since you are borrowing from yourself you pay yourself back the interest ...

 

IF GETTING CLOSE TO BEING DEBT FREE PLEASE DO NOT JUMP BACK INTO IT!!!! Just wait a bit a save then you can piece together a pretty cool car and have everything paid for. Many people would love to be out form under their credit debt and would kill to be in a place like yours.

 

The cheapest interest is to borrow against your own money that you have saved as a cushion. Banks will usually charge 1% above prime.
If you don't have savings set aside, you shouldn't buy until you do.
Having said that, if you are willing to pay 30 percent more for your dream, are employed, meeting your bills, go for it.

 

If you're the only 25 year old then I'm the only 22 years old that's never touched a credit card. Sweet. Closest thing to that I have is a debit card. The best payment policy is with cash that you earn yourself. The plan is literally bulletproof! If I need something, I sell some parts, offer some labor or whatever skills I can offer, use money I earned, and I get them that way.

If you get that car, you don't need to spend money on it right away. You can do the laborious tasks while saving up for the parts you want to get. Or if you have parts, try and bartering for the car or other more desirable parts.

I've been raised to not play around with banks a lot because they're the ones who have the money and the ones who will try to manipulate you. It's definitely not worth the stress.

Good ol' blue-collar money is the best any way you look at it.

 

Maybe prosper.com?

Another option is if you own a car that is 10yo or less and (nearly) paid off, you can get a new loan on that car as collateral. My credit union is offering a 2yr, 2.99% rate on newer cars, so it can be a great way to scrounge up a couple thou.

Michael

 

AMEN!!!! If you cant afford an old car, do not go and buy one...at best most are money traps. I myself have been lucky, and have bought everything I own without using credit. People like me, love people like you...because when you need money you sell your shit at way less then you paid for it. Use CASH....credit and loans have RUINED!!!!!! this country...

later

 

....Man....you are 63 years old.......what the hell are you waiting for.......life can change for us old farts in a hurry......borrow the money from your inlaws. bank or from your kids.......enjoy what life you have left......otherwise ....you could buy a model car and look at it when you're in a nursing home.....never to have the feeling of the loud pipes ,the wind blowing your hair back...and people giving you the thumbs up(thinking that you are the world's luckest guy to drive such a cool car).

 

I wouldnt take a loan out for much of anything these days.
if i cant cover the cost of it with what i have in money, i dont do it.
JM2C

 

Right on!

 

A really bad idea to go into debt for a "project" car. It's also too easy to run up your tab even further for parts and equipment because you'll be eager to get started on the car. A further consideration is that it can be tough to cash out an unfinished project if you suddenly require funds in the event of a job loss, family emergency, etc. Just my 2 bits.....

 

wow this has to be one of the most ridiculous threads ever.. "I'm almost out of credit card debt so I want to borrow money to buy an old car"...translation...one debt for another. How do you think this country got where it is right now? People spending more than they can afford and not willing to work or wait for something; save your nickel and dimes until you can afford a car

 

Just join some pryramid scheme or chain letter.
They ALL get rich, don't they?

 

Pay cash for hobbies.

...unless you know you're going to die from cancer in 10 years.....then you just rack up all the credit card and personal loan debt you feel like.....

...they say you can't take it with you when you go.....debt included.

 

I'd agree with not borrowing over 50% of the price of the project vehicle. But I also believe in the concept that hobby items should be paid for with cash either saved or from something that was sold to fund the next toy. If you do decide to borrow and your credit rating is top rate shop around for the best rate for a personal loan. Borrowing against the card calls for way too high of interest rate.

 

HudsonCustom has some great advice. Live within your means, especially in this economy.

 

I WAS the guy with a stack of plastic and crazy banker that never asked questions and just said "sign here". Its the shits, don't ever get back in that position. If your only "a few thou" from getting it done here is some advice that I applied and it worked for me. Its amazing how much hot rod money you will come up with if you cut out fast food, the bar, tobacco, candy bars, vending machines, etc. I broke alot of those habits and I'm still amazed that sometimes when that great deal pops its head up, I'm the guy that gets to take advantage of it. I hustle alot of stuff on CL. This time of year, "tax money" gets spent like its free, take advantage of it. My 2cents. Good luck. And if you have ever been TRULY broke, its amazing whats lying around that you can sell and live without.

 

Just save money for some more time...I'm paying my debts, but to my mother, not to a bank! This things can be traps for money, there is the part that you need, then there is the part that you like, then there is a new set of tyres that will fit better and so on. So wait a little more, and maybe sell some of your old toys...
just my two cents, but I would never make debts with a bank for this kind of stuff, I only have a debit card, so I can spend only the money that I already have