Hot Rods Financing Your Dream Car Is That A Thing?

Just a thought, for those that have the means but no outlet for for talent or parts availability.

 

Sorry, I don't know why everything is in caps ..

 

I'm still trying to figure out, what the question is....?????

 

It is the 13th

 

Absolutely not, I own both my cars, have right from the first piece of steel they're built from.

 

Financing a depreciating asset is the fastest way to lose your ass.

 

Most on here will tell you that if you don't have the cash you can't afford this hobby. I for the most part agree. But I also realize that by building a car and having to pay for somebody to do everything is also a losing proposition. I you have the means to finance a car that you like and do not want to change a thing on it you may be ahead of the game. You should not finance a project car.

 

If you don't have time, tools, tenacity to finish or skills best to just spend a little more on what you want. Save time, money and frustration and be on the road.


Edit looks like someone beat me to it.

 

It takes time and money to build a car. The more you have of one, the less you need of the other. If you're asking is it ok to buy a turn key ride, I got no heartburn about it. Just don't claim you built it.

 

I don't see a problem with it. people finance new cars all the time and they depreciate really fast. I would rather finance an old classic that you might have a chance of breaking even on or even turn a profit on.

cash is best but I don't see a problem with it if you can find someone that will finance one. A lot of banks want to finance fairly new cars only.

 

Lots of people have a hard time saving up enough money to buy their dream car. At least before they are too old to enjoy it. Soon as you get a little stock pile of money, a vacation idea comes along or new carpet for the house or what have you, and then you are back to square one. If you borrow the money and get your car now you can enjoy it and the payments are like a forced savings account. Money is cheap right now, 5% or less. But you really have to buy smart if you are borrowing to do so. You have to get a good deal, buying your car for under market value. And only by a car that has a really good chance of appreciating more than 5% per year. That makes the interest a break even or better.. Don't buy a 4-door or A Rambler or some weird hot rod that nobody else is going to want to buy if you ever have to sell. There are cars that are almost guaranteed to go up in value over time. Nice early Corvettes, Real early thirties Ford coupes and roadsters, auburns, cords, big block convertibles, Hemi cars. Do your research buy wisely. Remember if it is easy to buy, it will be hard to sell. If it is hard to buy it will be easy to sell. Good luck, Joel

 

Never Finance a Toy is my platform.

 

How do you end up with a small fortune in a car?
You start with a large fortune!

 

I wouldn't even consider it myself,no one has a crystal ball that tells the unforeseeable future,losing a job or having a accident could reek havoc on family finances,but that's me just me using my head for more than a hat rack. HRP

 

Seems like some good advice here even if they don't know the difference between loosing and losing

People finance their toys all the time but with that being said I wouldn't do it for a project build.

Too much uncertainty because of the fact that for every project completed there are probably a dozen that are abandoned for various reasons.

I'm paying for mine as I go and doing it all myself that's why it's taking so long

 

be very cautious about financing an old car - check with your bank to see if they will set up a loan - if so, likely to be higher rate than for a new car - if you buy from a old car consignment place they should offer financing, at a high rate - be sure it is what you really want - have it checked by an independent mechanic that knows/builds old cars - also, check with your insurance company too - don't sell your daily driver

 

The only other way to lose money faster then with an old car and that is buying a boat. Financing either one is a losing proposition. Be careful who you listen to. Lots of bad information out there. Never finance a toy.

Gary

 

If you can't drive a Hot Rod on cash budget you have more car than you can afford. You need to reassess your priorities.

 

https://collectorcarlending.com

 

I will have to disagree with about half the people here. If the right situation presents itself I see nothing wrong with financing a toy, I just did this myself for the first time with an "old" car and it was pretty easy through our local credit union. Mine was a 1965 Mustang Fastback at 2.9% for 84 months, the payment is well under $300 monthly. The rule they gave me was it had to be professionally appraised and then they would loan 75% of the appraised value. It's a pretty damn decent "A" code 4 speed car and will appreciate in value unlike a boat or motorhome or atv or something. I already had several collector cars, but a good deal locally presented itself and I just built a house so I was a little short on spending money and I don't regret the decision a bit. Every time I drive it, I think to myself "Wow, some people pay way more than this for a Kia, and see what that's worth in 84 months!" I get that paid off is better, and cash is king, but in this case it works. I plan on paying it off way early, but having done it I would do it again. All my other classics are free & clear as well as my daily drivers and home. If I was making payments on everything there is NO WAY I would have bought the Mustang. Sometimes financing a toy can be a smart move,I always paid cash for everything and didn't have any credit to speak of. at 33 years old I bought a new Kubota Tractor for 0 down and 0% and over 3 years my credit score went from mid 600's to mid 700's just by making the payments on that tractor, nothing else changed. I would have bought the tractor anyway because I needed one, I keep it inside so it still looks new, I never had to spend my bank account at one time, and now I have decent credit.

 

back when I was young and handsome I got a thing in the mail where I could get a $2500.00 unsecured loan. I don't remember which car I bought with it, but all through the 80's I drove cool old cars, sold them for a little profit, or maybe a little loss and bought another. didn't get rich, wasn't trying to. I was trying to own and drive old cars and have fun. from 1980 to 1990 I must have had 20 old cars and pretty much broke even and it all started with that loan.

I'll just say if you have to ask a question like this, do not do it. you are lacking in some way and would probably lose out in the end.

one more thing, you never here boat owners saying only pay cash for boats. I bet my dickhead ex bro in law pissed away 30 grand on boats and motorhomes over the years and has nothing to show for it.

 

how many of you nay sayers have financed a 60" TV?

 

Agree with Hemi Joel, buy wisely. I found a complete barn find 33 Ford roadster, my dream car, in 1987 for a bargain price, but had very little cash for this once in a lifetime opportunity.So I convinced the bank to lend me the miserable $s to allow the deal to proceed.
I would never be able to afford a car like this if I had not taken the loan, so yes go for it if it is a no lose situation.
I know I would of kicked myself if I had let this slip through my hands, and I still own it!

 

People lose money on old cars? I've always made money, or at least broke even. Old cars appreciate, new cars depreciate. The right old cars appreciate faster than any interest bearing bank or savings account, and some beat the stock market.

 

If you have the means AND know what your getting into then go ahead. People do it all the time and trust me there are WAAAAAY worse things you could dump your money into then old cars. To me if you can't at least break even or come close when you sell an old car your doing something wrong (paying too much up front, spending too much money making it too personal or paying for a build), the only cars that are up and down are the high dollar builds. Anyone saying there's no quicker way to lose money then old cars has never talked to someone with new cars, boats (or any watercraft), motorhomes, trailers, motorcycles (street and dirt). I'm not a wheeler dealer type of guy so I tend to break even or come close most of the time.

 

Paying cash is the responsible thing to do I agree.
But Sometimes, depending on the situation, I'd rather buy something on a loan and lose it rather than never have it at all.
Common sense is the key element based on economy, job stability, and assets at the time.
I wonder how many have bought a home that was actually more than they really needed? Extra buildings, baths and square footage.
We all take chances. What fun is living on a shoestring budget because its more responsible?



..

 

Hell that's a Jon Boat and a Pop Up trailer, $30,000 might get you a decent out board motor now a days.

 

I have used a line of credit to build a car. Then sell it pay back the line of credit and pocket the rest. Worked for me more than once.
The people at the bank knew me and I had no problem getting an unsecured credit line to build a car.

 

Todays society "I want it all..and I want it now".
I never have, and I never will finance a/my "dream car".
To each their own.

 

If I were still working I might think about it. But probably not. Retired now, so no way Jose. Hell, I don't even keep a balance on my credit cards.