Hot Rods Financing Your Dream Car Is That A Thing?

I have four cars never financed one thing on any of them. Never financed my 90" tv either . I hang out with a lot of older hot riders cause people in there 30's are more interested in god knows what now days. I look at those dudes and none of them are getting younger. So if you got an opportunity to finance your dream car, finance the shit out of it and enjoy the thing. Just don't finance to buy a project, your still going to have to spend money. A fella about a year ago brought me a car
To build for him and he brought me a check from the bank because he financed me to build it for him. Half way through he was out of money and I was out of time and now I have a shop ornament and he doesn't have a car. Be wise about it. Enjoy life, we only here for a short time, no reason to not own bad ass cars.


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The answers here are as variable as the cars we talk about. Personally, I don't finance toys because I believe that toys are a reward that you have to earn first, and never should your toys come before the needs of your family.

Obviously it's a "thing" as shown on the TV commercials for JJ Banc or whatever they call themselves. As for whether it's a wise thing to do, I think everyone's situation is different.

Whether it's a car or any other toy, I think it's always unwise to incur debt just because you want something you otherwise can't afford.

 

Except, the bank/lender makes YOU pay for the premiums on the insurance, on "their" property. Nice work if you can get it.

"Gold is the money of kings, silver is the money of gentlemen, barter is the money of peasants and debt is the money of slaves."
Traditional

Cash is king these days, though they want to outlaw that too. Go figure.

 

No real bad advice on here, it's just that...advice....an opinion. We're all adults and SHOULD be able to make our own decisions taking into account everything needed to make an informed choice. The way I choose to run my financial life is mostly in stark contrast to everyone around me in my area, but it's a personal choice. I will have projects to last me well into retirement and fund other projects or just life in general. Also around here you can't pay for a house outright unless you rolled the leprechaun for his gold, so it's the only thing I've ever financed. I do use credit cards that pay me cash back all the time, but have never paid interest.

All that being said I do realize that interest rates, job security and wages do differ from state to state, but I would still say IF you've done all your homework, know you can afford it comfortably and go about it sensibly.....then go for it.

I don't also believe you need good finances to be in this old car life/hobby, if you can build it safely yourself and fix used parts, it's fairly inexpensive. If your building a show car or having someone else build you a car that's where it gets super pricey.

Very true, but sadly around here 95% of the population doesn't agree with that.

 

Ive bought sold traded been given and junked somewhere in the neighborhood of two thousand cars. And never financed one of them. We bought two different parcels of acreage on credit. many decades ago. And that's the only debt we willingly incurred since we got married. And ive found if you save up the money to purchase something. Many times by the time you get the money saved you decide you like your money better.

 

There are 12 step programs for people like you, we may have to do an intervention!

 

When I went looking for a hot rod last year it was obvious that it was a "buyers market." I looked at 25 or so '32 based roadsters less than $50K. No way could you build one for the asking price. I am tired of wrenching so I have chosen to buy the last couple of toys, financing everyone. I have a corporate job so a stable income. I set aside a certain amount every month to satisfy my love of hot rods. I do it as a hobby, not expecting to make anything. If I break even on this latest toy, I'm ok with that. Hey, it keeps all these hot rod shops in business!

 

Haggerty finances.
https://www.hagerty.com/finance/classic-car-financing

 

Wow. That's a little like selling dope at the Narcotics Anonymous meeting.....er.... ummm.... not that I would ever do that..........

 

If you liked that one, this one would be like lending money at the crack convention.
http://www.woodsidecredit.com/barrett-jackson/

 

Yes I started young and every vehicle I acquired I simply just did whatever came next with it. I stripped the good parts from & sent a lot of vehicles to the chrusher that would make good projects today. One I remember well a 59 mercury 2 door post. 312 engine auto. It cost $17.50 at a estate auction. Black paint not a dent or scratch. filled up with empty colorox bottles. No title. I pulled the engine trans and nine inch rearend. Hauled it to Shannon Salvage and got $53.00! When the crane picked it up off the back of my 66 ford F600 a huge trophy size rat jumped out! It was a sad enging for that vehicle. But that is what helped make what is left more valuable.Old vehicles made a large part of my living over the last 5 decades. And it wasn't work to me it was great fun. I cleaned up pretty good when scrap was at record prices a few years ago. The way I look at it as long as my wife is Ok with it . Then its no skin of anyone elses nose. The same is true for someone buying on credit. Its their decision.

 

Just poking a little bit of fun your way Danny. I'm a little bit envious of the 80 degrees although it's starting to get a little bit too hot for me above that.
I'd be more envious if I had the RPU ready to drive.
Spent the day inside my warm garage with my sander

 

It would be GREAT if others decisions, financial and otherwise, didn't affect us but they do. Don't let anybody bullshit you. The "Great Depression" was a huge stock bubble brought on by funny money and everyone buying stocks on 10% margin with borrowed money. That's the funny thing about asset crashes, the value of everything collapses, but the debts and payments don't. The 2008 crash was a hangover of real estate speculation with borrowed money, and everyone thought trees grew to the sky. Flipping houses, with borrowed money. It worked for a while.

There isn't anything wrong with debt (credit) when used responsibly, as usual the truth is in the middle. Credit is leverage and makes the business world go round. How does that work, "90 Days Net"? This works the same way for countries too. When they borrow too much, nobody will extend credit. Cash on the barrelhead, or forget it. We don't trust you. So things get scarce in the stores, anything imported.

Point being don't let debt run (ruin) as an individual, your life. Times and attitudes change, not always for the better. They said on the news the other night something like half of all Americans couldn't scrape up a few hundred dollars cash in an emergency. Excessive use of credit and and debt is one way young people learn math - compound interest tables. Ha!

"Never borrow money to purchase a depreciating asset." <-- somebody wrote that at the beginning of the thread. It's a great way to stay in the hole. You don't want to be in the hole.

 

I buy food. I eat it. It`s gone. Is it a loosing proposition. This car thing is a hobby for me. I spend money on my car. It`s gone. I don`t expect to get it back. I`ve owned it for over 30 years. It is a hobby. Why do people have to make a profit on everything they buy. If the old car market went south for ten years. We`d loose a lot of enthusiasts out there. Were they really old car people to begin with. Don`t get me wrong, I make my living working on cars. It`s the flippers I don`t do business with. They want it done now and done cheap. I don`t do cheap. I do work for people who have a passion for cars and who are willing to wait for an opening. If you gamble $100 at the casino. And loose it. Are you willing to take the loss. Can you afford the loss. If not. Don`t gamble. Let the bashing begin.

 

Eventually everyone winds up in a hole. Poppa was a rolling stone, where ever he laid his hat was his home and when he died, all he left us was a loan........Yes I know its "alone"

 

I bought most things for my cars with credit card over time and pay it off in regular fortnightly payments. Sometimes there are periods where I buy nothing but still keep paying more than the minimum monthly repayment. The outstanding balance fluctuates up and down all the time but it's always under control. Almost everything comes from overseas so there is currency exchange, bank charges and additional freight. Stick to your budget and plan ahead. It might take a little longer and I always complete my projects.

 

I've got to say, I must be old. I don't do financing. I save until I can get it. Financing easily doubles the price of anything you buy and, as HRP said earlier on, you can't foretell when trouble will strike. I pay cash for my cars and tvs, I paid off my mortgage as soon as I could-in the 90's when everyone chased double digit stock market returns,I pay off my credit cards every month. I realize I am one of the fortunate few who can afford zero debt. But, I sleep really well at night.A crunch comes, I owe the government taxes and that's it. Build your car as you can afford it.

 

5window, you hit the nail on the head. You are obviously someone who runs a tight ship. Of all the posts on this old car financing thread yours makes the most sense and exactly what we've always done. I too can always sleep at night knowing I don't owe anybody a thing. Nobody can foretell the future and unexpected problems will always arise. My cars and everything on them is paid in full. If I can't pay for something I don't need it.
Regarding being old, we didn't get that way being stupid.

Gary

 

I have been a mortgage loan officer/manager/regional/ babysitter/ nosewiper for 27 plus years. Finance has its place, IMHO it doesn't include cars. Our countries economy has been brought to its knees a couple times by speculative lending, be it government, corporate or private it it's the recipe of disaster. Play smart out there. Let me know if you need to do a cash out refi to buy a car or two.

 

Is this thread about the hobby, or about money? No criticism here, but for me it's always been a hobby, meaning, if I could afford to play, I did and do, so my first car was a slow process, I was broker than broke. Sold it and had a little more money to build with, sold again and so on till I got here now, now when I sell my wrecks, I got more than enough to buy a project and build it. If I had financed my hobby, I suspect I'd still be making payments, justifying that for the fun I have, I know guys my age who haven't got a pot to fill, but drive high zoot cars, nobody but their closest friends know they can barely afford insurance.
Two ways to see this, one, they're having fun, even if it costs them, they'll pay till they die, a trip is on a credit card.
I can afford my hobby, not worried what the cost is, don't matter, it's paid for. A trip is paid for, I can buy or stay where I want, I don't have to worry about how to pay for it when I get home.
I prefer the latter, if I break down, got an empty card to fix it with, I know I'll get home, and not have to sweat over the next payment.
Either way, it's about enjoying your hobby, however you choose to. LeRoy.

 

There are times when it is to your benefit to use OPM (other people's money). However, only you can be a judge of whether or not buying a hot rod is one of those times. In spite of the optimistic outlook on the economy, there are a lot of home being foreclosed in certain areas of the country. Reading the legal notices shows that too many people took out equity to buy toys and now the mortgage is more then the original purchase price!

A lot of pontificating here, but only the OP can be the judge of whether or not if make sense to finance a hot rod.

 

I can only speak for myself. It's just a hobby for me. But one that I love too much. So my wife helps keep me on budget. The only way I would finance a project, would be in the timing. Say I found a 32 3 window barn find Hot Rod. Say it had all the goodies, Flathead, chopped, QC, etc. I would call the bank first. Then buy some flowers for the wife. lol Ron...

 

Just to add my thoughts. I think that when one is buying a car be it old or new financing makes a little sense. I am not talking financing a project but a running car. I guess if you were a *rich man or a lot wealthier than I will ever be you might be financing a car that is being built by some big name shop. But in theory you are not financing a project you are buying a car.

*rich being a nominal term here, according to current statistics I am way below middle class for example.

 

You should not overpay anything, i was also looking for a loan to buy a car and yes, many of them will try to get more money from you or scam you in some way but you must double check everything. After extensive search i found a website that gave me the best option. You should check out https://credit-10.com/mx/credilikeme-prestamos/ I was able to get a low rate offer and I'm sure anyone can find an offer that suits them well. CrediLikeMe is an experienced company that has great reviews from their customers. They offer safe and good options, helped me a lot.

 

You have some options
- talk to the seller- tell him your situation and see if he will take a non- refundable deposit with a strict timeline for you to come up with the balance required
-take a cash advance on your credit card or personal line of credit
- sit tight- keep saving and hope the car is still available when you have the funds to pay cash for it
- take a loan out for the full amount and make payments- keeping your cash in the bank for other things ( assuming this car is a driver and not a project)
- sell off some excess stuff- parts- project vehicles, to raise the 3k you need.

 

Try country classics i here good things about them.

 

I usually go with the one easy payment plan, but I did make an exception with my latest acquisition. I found the second vehicle I wanted but I was a few thousand short because I hadn't yet sold the first vehicle that I didn't want anymore. My bank didn't have any type of "bridge loan" for me but they pointed out that I qualified for a one lump additional $7k to my credit card account, 0 interest for 12 months. (All payments go to the 'loan' first so fresh c/card purchases will accrue some interest.) I was debt-free and had money coming in above my expenses so I did the deed just because it was so simple. It probably cost me between 1 to 2 hundred and I was back in the black in 2 or 3 months.
But would I ever take out a seven year loan for my "dream car"? No freakin' way! I'm retired now but back in my working days, every dollar lost to interest was another dollar I couldn't put away and invest in my comfortable retirement.

 

I bought a few off topic new cars on credit. We would always wait for 0% financing and run them to full term. Toys....cash.

 

As I understand it Home equity loan interest is no longer deductible if you use the money for a car.

 

Marry a trust fund baby. Makes life much less stressful.