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Hot Rods Financing Your Dream Car Is That A Thing?

Discussion in 'The Hokey Ass Message Board' started by lo c dan, Apr 13, 2017.

  1. 392
    Joined: Feb 27, 2007
    Posts: 1,122


    I’d say I haven’t but right ride at right time and it could have happened, just not now.
  2. glrbird
    Joined: Dec 20, 2010
    Posts: 474


    Gman0046 likes this.
  3. My dad bought cars to flip on Credit Cards several times. Wise? Probably not, but he always sold them and made money.

    People finance new cars all the time, and they drop in value as soon as you drive them off the lot. When you're finished paying off that 30k note they're worth 10k or less. So, why not finance an old car? They hold their money a lot better than a new one.

    I once helped a guy sell a 2 year old Jaguar Convertible. It was pristine, 10k miles on it, practically new. He paid 90k for it new, market for it 2 years later was 40k. Old cars might drop, but not that much.
    arkiehotrods and lo c dan like this.
  4. olscrounger
    Joined: Feb 23, 2008
    Posts: 3,848


    I would not finance a toy of any type. Many years ago we had to finance things as we had no option but payed them off as quick as we could. Many years ago (35) I did get a 90 full pay loan for $10K to buy some cars to flip. It made my wife very nervous!! Bought em, fixed em flipped em in 2 months and paid back the loan and made a few bucks.
    lothiandon1940 likes this.
  5. Gman0046
    Joined: Jul 24, 2005
    Posts: 6,233


    Can't imagine what the interest rate would be for financing an old car. Probably 9-10% with a healthy down payment. To me thats a complete waste of hard earned money.
  6. Duellym
    Joined: Feb 28, 2016
    Posts: 272


    I'm just poor, i just accepted that fact

    Tell myself "it be like that sometimes"

    Sent from my SM-G973U using The H.A.M.B. mobile app
    Sky Six likes this.
  7. 500caddy
    Joined: Feb 8, 2019
    Posts: 77


  8. 5window
    Joined: Jan 29, 2005
    Posts: 7,368


    Maybe the happiest wife in the world -until you get laid off, or your job disappears and they repo her car. The happiest wives in the world aren't happy because of material goods. And if you really want happy, work to the point where, when a crisis hits, you don't owe anybody any money. That's happy.
  9. 5window
    Joined: Jan 29, 2005
    Posts: 7,368


    1. UK company -not available in USA
    2. Large balloon payment due at the end of the contract-lots of folks lost their homes doing this in 2008.
    3. "Porsche"
  10. Gman0046
    Joined: Jul 24, 2005
    Posts: 6,233


    The "old car hobby" is definitely not for everyone. Those with a bunch of disposable income always come out ahead. Those with short pockets can't afford to play.

    With 47 million Americans out of work right now theres got to be some old car bargains out there. Besides in this current financial situation signing up for a high interest loan is not what anyone needs to be doing. I doubt not too many financial institutions would be willing to issue loans for an old car purchase. If they did the interest rates would be astronomical. The last thing banks want is to wind up with an old car to sell if someone defaults on a loan.

    A good option is new car sales are at an all time high with most manufacturers offering zero precent interest free loans for up to 74 months. Thats free money and a great deal. This may not be for everyone as I would think you'd have to have a decent FICA score to participate.

    I'm not making any significant purchases right now. I've got a recently finished car that was a frame off restoration and needs nothing. I'm just going to sit back and see how all this shakes out. Things could get a lot worse before it gets better.
    Last edited: Jun 28, 2020
    olscrounger and 5window like this.
  11. Elcohaulic
    Joined: Dec 27, 2017
    Posts: 920


    Time is precious.. Old age comes faster and faster, do it now my friend...
    X-cpe likes this.
  12. Gman0046
    Joined: Jul 24, 2005
    Posts: 6,233


    Elcohaulic, Do what? I hope your not suggesting someone squander their retirement nest egg on an old car purchase. Winding up homeless is not where you need to be in your old age. Especially in the winter.

    My Mom & Dad always advised me to save some money for a rainy day. I think that was pretty good advice.
    Last edited: Jun 27, 2020
  13. Gman0046
    Joined: Jul 24, 2005
    Posts: 6,233


    southcross2631, I don't know anyone who ever financed the purchase of an old car or for the build of one. I'm curious as to what APR the bank charged and what was the time frame they gave for the build? Can't imagine the pressure you'd be under to complete a build.
    Last edited: Jun 27, 2020
    olscrounger likes this.
  14. I don't know of any rational reason to finance a toy or a build. If you have the money, fine. Buy one or start ordering parts!

    My projects are me. If I have the spare cash to buy a needed big ticket part, great. If not, I'll do the drudge work which requires almost no money. Pretty simple!
  15. gene-koning
    Joined: Oct 28, 2016
    Posts: 1,824


    I finance all my builds! I set up a fund, and put money in it every month. When I have enough money, I'll buy some parts. I find there are points in a build where you need parts, and there are times when you need time to assemble the parts. I plan ahead to get the parts on hand that will carry me through a lengthy build time, that gives me time to build up the fund a bit as well.

    There are times when you just have to have parts to reach a safe stopping point. I've been known to add a couple of months of the monthly budget funding to the credit card when these times come, but that amount never exceeds 2 months worth of budget. My wife is fully onboard with the plan, she knows what I'm doing. I should probably add that my wife and I are debt free (it took several years of hard work to get to that point), and we have an emergency fund and a savings account. We are both also drawing a SS check monthly (+ some retirement fund income). We are living well, below our monthly income.

    As an example, my current project needs all new glass ($500+) and I'm building my fund up for that. The new glass will need new window gaskets to install the glass. I foresee once I'm able to pay for the glass, I will probably put the window gaskets on the credit card so I can get the vehicle closed up before winter hits, and then pay off the card over a couple months. The interest will probably amount to somewhere around $10, which I can afford (no balance on the card helps that a lot too).

    Debt is a funny thing. When your in it, its hard to imagine not having it, but once you get out of debt, it sure makes it easy to see why you don't want to get back in it again. Its a completely different mind set. Gene
    High test 63 and lonejacklarry like this.
  16. 5window
    Joined: Jan 29, 2005
    Posts: 7,368


    Twenty five years ago, I was able to pay off my home mortgage. I could have invested in tech stocks or high interest rate CDs but decided on peace of mind. No regrets. Good times, bad times, financial fun of 2008 or now, I rest easier knowing I own my house. Gene's right. If you can get to debt free, it is a wonderful feeling.
    Last edited: Jun 29, 2020
  17. Gman0046
    Joined: Jul 24, 2005
    Posts: 6,233


    5window has it right. Debt free gives you peace of mind and a good nights sleep.
    Just Gary, olscrounger and 5window like this.
  18. When I started the conversation page 1. I was thinking of all the younger gen. financing off topic cars easier than cash to buy or build. I think back when I was starting out everyone drove cars considered hot rods of today and didn't think anything of it, was normal. Then someone bought up all the cars I grew up on drove up the prices now to most unobtainable to younger I'll call kids being old now. . Thanks for all that has responded,very insightful. Demographics I'm sure play a part in traditional car availability. .
  19. Gman0046
    Joined: Jul 24, 2005
    Posts: 6,233


    The biggest part of engaging in the old car hobby right now is Having a job. 47 million of our fellow Americans are on unemployment. Doubt to many of them are out looking to purchase toys.
    5window likes this.
  20. gene-koning
    Joined: Oct 28, 2016
    Posts: 1,824


    The only cars I've ever financed were daily driver cars, and that was one car at a time. My wife, who generally was hauling our children around always had a reliable car to drive, and I usually ended up driving the "old" car, or some pile I picked up for cash I limped along. A good safe car for her to go to work and pick up our children was part of the expenses of her earning an income, so financing a good car for her was acceptable. We did not buy expensive fancy new cars, we bought reliable good used cars that I knew would run much longer then the monthly payment book would last, and then the car wasn't replaced as soon as the payments ended. There were times we went 2-3 years between without car payments.

    My wife and I both worked regular jobs, and I nearly always worked on cars beyond my regular job to earn extra money. We lived on a budget from the time we got married that was based on the income from our regular jobs. Money from the extra work I did funded most of our leisure activities, many of which were car related. Cars were something we both enjoyed, and still do.

    The point is, we both understood the need to live with the money we made on our regular jobs. We both also understood the money I made on the side was very inconsistent, it was not something we would, could, or should expect to pay any form of monthly payment with. I have never funded a car build, or a toy (more then a month or two as outlined earlier) with borrowed money. I can not say that about a house, nor a daily driver car for my wife, though the last daily driver we borrowed money for was 16 years ago.

    It can still be done the way I did it, but the kids of today need to get past the point that they think the world owes them something and learn that if they want nice stuff, they have to go out and work for it. Gene
    Just Gary and olscrounger like this.
  21. RJP
    Joined: Oct 5, 2005
    Posts: 1,534

    from PNW

    When I started in the working/earning full time world, I quickly realized the best way to handle debt was to let somebody else pay it for you (thanks Mom for that life lesson). Double-flats and 4 families instead of a single family home. Rentable floor space when you're looking for a shop building. When I bought a Beer Depot for my shop, which was considered a white elephant by local realtors, I fixed up the front offices and rented them out. The neighborhood wasn't for everybody, but all it took was finding the right renter to tote my monthly note. In my case it was one of those phone collection businesses. The guy told me one time while was he was paying the rent that the address, area, and cyclone fence topped with razor wire helped with their intimidation/collection process. My double-flat paid for itself. My 4 family not only paid for itself, it handled all my living expenses, completely furnished my shop, and paid the bills on a very expensive past time called sprint car racing. Debt didn't bother me, I bought what I wanted, when I wanted it because I made sure I wasn't the one picking up the tab. I even worked 50hr wks just to feed a greedy bank account. At 32, I figured the bank account was fat enough and I stopped the 50hr work week. That was 35yrs ago. But even though I'm debt free, I'm still letting somebody pick up my expenses. Some habits are just too hard to break.
    Short answer to the OP's question is, "You sure as hell can". But only if you're smart enough to let someone else pick up the tab.
    Gman0046 likes this.
  22. jnaki
    Joined: Jan 1, 2015
    Posts: 4,509



    When we were first married, there were plenty of hot rods in all stages of builds for us to drool over and wish we had one. With the car buying experience we had since our teenage hot rods and cruisers, it all depended on money we had saved or earned. Not by borrowing from any bank or financial institution. The only credit card was for gas only and nothing else.

    Those ones we all have now, did not come out until much later. So, we paid for our cars in cash or saved up enough to put a down payment on a new car with A/C were the only time we borrowed money from a bank as in a loan. The 5 year loan was paid off in two years and then we were debt free.

    At the time, we did have a good credit score for loans and our meager savings/checking was always used to pay things off. So, when the wild hair came up with the thought of a new Harley Sportster motorcycle, there was enough in the account to buy it outright and still be in the secure monthly savings area. (According to our money manager friend back then, several standard ideas for savings always worked. He was a business major in college and told us, we should always have enough for three months of rent or house payments available.)

    He also said that paying off any monthly bills makes the credit rating go up. If you have a credit card (we did, for gas only) he said to pay that off monthly. The result will be a good credit rating going up as there is no debt to show. The last thing he said was to not have a business or other places ask for a credit checks on you. Each credit check makes the credit rating go lower.

    Also, one thing he mentioned was that one credit card is good and more is not always a good thing to have. It might be used for backup, causing more debt and more chunks off your credit rating. But, if you pay your debt off monthly, then multiple credit cards is OK to have. Just don’t cancel the ones you don’t use regularly. That is almost as bad as a credit check by multiple businesses and lowers your rating.


    Financing a hot rod that is used for just cruising and not daily driving is like owning a sailboat or a cabin in the mountains. With the exception that those can be tax deductible, whereas, a hot rod is not. But, if you pay your monthly cost every time and continue to do so, it is a good statistic for your credit rating. If you are late, the rating takes a dive. Some people can manage money well and taking a loan out for a hot rod is feasible. If the monthly credit cards (multiple) cards have a balance due every month, then taking that hot rod loan may not happen or will be rejected.

    So, after all of these years, our credit rating is at or near the top rating. Some have 899 as the top and the majority of the credit companies go up to 850 as the top ranking. My wife was rated at 899 and I was rated at 800. Did it make a difference in the car loan being changed? They did give us the best deal under 2% at the time. We were happy. But, then, several years ago, we paid off all of the loans and are relatively debt free, other than our low monthly, on our current house.

    If anyone is above 700, that is good, but the higher up you are, the better offers you will get or loans not being rejected. At this stage of the lifetime game, what loans would we take out? We are satisfied with the affordable lifestyle living in So Cal. Take out a loan for a $40k 1940 Ford two door Sedan in So Cal or for another (3rd) Ford Sedan Delivery from Texas? But, this pandemic can cause problems for others. Watch your spending...

    The choice to get financing is up to your credit rating and obvious ability to pay off your monthly debts. Otherwise, the loans are not worth having. People do not use one card to pay off the other…that only lasts for a little while. The financial advice was that spending should stop for anything not necessary for monthly living. It works…
    upload_2020-7-12_4-3-21.png A REPRODUCTION FOR $189K
    A REAL 1965 289 COBRA SOLD IN 2016 FOR US$ 880,000

    And if we sold our small house, the car would still sleep two lunkheads and a little dog…uncomfortably, financing or not.

  23. 53 hemi
    Joined: Jan 8, 2009
    Posts: 465

    53 hemi

    I used a personal bank loan to buy my coupe. My finances were under control, but I knew it was unlikely that I would ever save up that kind of cash ($14,000), so if I wanted a real hot rod I'd have to just do it.

    I paid that off in 3 years. Then I financed the Hemi build, which included a new TKO 500 and miscellaneous stuff. I split that between a personal loan and a credit card. That's my only regret - the credit card was a mistake.

    But a $200 / month payment for a few years to own my dream car? Totally worth it. Just don't count all the other cash that it will invariably eat up! Hahaha I only keep the roughest of total cost estimates!

    Sent from my SM-G950U using The H.A.M.B. mobile app
    j3harleys likes this.
  24. oldsman41
    Joined: Jun 25, 2010
    Posts: 1,184


    To each his own.i don’t really care what someone else does with their money
    j3harleys and Gman0046 like this.

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