loans on cars like ours; I'm the seller

KobaltBlau · 07-21-2004, 12:12 PM

I have an early 90s porsche for sale and the buyer sent me a deposit and signed a bill of sale after looking at the car and liking it. He talked with the bank before doing this, but he says the bank changed their deal the following monday (after friday). It doesn't really matter to the story whether the bank screwed up or he did; I guess if he didn't have anything in writing then it's his fault. He has a good job, but is not selling a car of comparable value. He seems like a solid buyer, it's just so hard to get loans on older cars these days when the bank sends your application to be processed by a machine 5 states away.

Anyway, the problem is they are offering him a loan now for the "low retail" value of the car (the car is as new), at a rate in the 9-10% range, which he doesn't find agreeable. This isn't my responsibility, but I want to make this deal happen (especially since I am within the 20 days I allowed him to deliver the full amount), so I wanted to help him out. Here are the options I can think of:

1. Credit union, if he is a member, might loan on an older car. I imagine he has already tried this if he is a member of one
2. Home equity line of credit, if he owns a home. Interest is tax deductible.
3. Personal line of credit - he probably has thought of this if he has one, interest rate is probably not as low as a home equity line of credit.
4. Capitol One auto finance might be decent, since they bought peoplefirst.com. Anyone have recent experience with Capitol One?

I have always been selling a car of comparable value when I have bought an expensive car; so I have used my personal lines of credit to buy the new car and perhaps pay a little difference over time. But obviously this is only possible if you have one or more personal lines of credit.

Here are some past threads addressing some of these issues, I just wondered if anyone had input now. These threads don't include any options I haven't put into this post.

Finance For Porsche?
Car loans
67 911S Targa, What's it Worth?

Thanks in advance!

CarreraS2 · 07-21-2004, 12:20 PM

Me, personally?

I'd just throw this guy onto the pile with all the other Tire Kickers and Dreamers, move on and try to sell the car to someone who can actually purchase it.

S4drifter · 07-21-2004, 12:27 PM

I got a capital one used car loan (private party) with very little hassle. 6% last fall. It was a painless process.

KobaltBlau · 07-21-2004, 12:30 PM

Well, I'm bound by the bill of sale for about another week, so I have to wait it out. Keep in mind that he did send me a deposit that has been in the bank for over a week without them calling me with any problems (still need maybe 4 more days to be sure).

But you're right, it might end up that way. We'll see.

KobaltBlau · 12:34 PM

Quote:

Originally posted by S4drifter
I got a capital one used car loan (private party) with very little hassle. 6% last fall. It was a painless process.

what year was the car? Was it the 87 930? Thanks.

FenderGuy · 07-21-2004, 12:32 PM

Quote:

Originally posted by KobaltBlau

3. Personal line of credit - he probably has thought of this if he has one, interest rate is probably not as low as a home equity line of credit.
4. Capitol One auto finance might be decent, since they bought peoplefirst.com. Anyone have recent experience with Capitol One?

#3 is the best, better interest rate then a car loan...

Rick Lee · Rick Lee's Garage

Since he committed to buying the car, he should find the fastest, not necessarily the cheapest, way to get you the money and then he can refinance the loan later. No way is a home equity line going to fund in one week, even if he applies today. He should use a credit card cash advance if he has to and then refinance it later.

BTW, I just had some idiot on eBay use the "Buy It Now" option and then ask me to hold the amp for him until he quits his job next month and gets his severence pay.

S4drifter · 07-21-2004, 12:38 PM

Yes, it was for the 930.

911SCfanatic · 911SCfanatic's Garage

Richard, hopefully you flame that guy on feedback.

FenderGuy · 07-21-2004, 12:39 PM

Quote:

Originally posted by Richard LeSchander
Since he committed to buying the car, he should find the fastest, not necessarily the cheapest, way to get you the money and then he can refinance the loan later. No way is a home equity line going to fund in one week, even if he applies today. He should use a credit card cash advance if he has to and then refinance it later.

BTW, I just had some idiot on eBay use the "Buy It Now" option and then ask me to hold the amp for him until he quits his job next month and gets his severence pay.

I got my line of credit from Wells Fargo in a week

911SCfanatic · 911SCfanatic's Garage

KobaltBleu, that's exactly why you want at least a portion of the deposit non-refundable. For 20 days to close the deal, that should be costing him some real money in case he doesn't close the deal--for whatever reason. If you didn't here, make sure you include that in future agreements. It will save you from a lot of dead beats who don't have the means to pay or who are simply clueless.

KobaltBlau · 07-21-2004, 12:47 PM

Thanks for all the responses so far, guys!

Quote:

Originally posted by 911SCfanatic
KobaltBleu, that's exactly why you want at least a portion of the deposit non-refundable

Oh, It is! Otherwise, what's the point of a deposit? Still, I'm not in the business of taking deposits, I just want to sell the car.

Quote:

Originally posted by FenderGuy
I got my line of credit from Wells Fargo in a week

Personal or Home Equity?

Rick Lee · Rick Lee's Garage

Bear in mind, some states have a 3-5 day right of recision period on home equity loans. I got mine approved in about 10 min. and closed a few days later over the phone in about 20 min. But I had to wait three business days to have the money because of the recision period in Virginia.

Bill G., I'm not gonna flame him on feedback, as he could do the same to me. If I wanted to go through proper channels to get listing credits and relist, it would take as long as waiting for the idiot to pay me in the first place. I just told him I'd spare his already zero feedback and relist, which I did.

FenderGuy · 07-21-2004, 12:53 PM

Quote:

Originally posted by KobaltBlau
Thanks for all the responses so far, guys!

Oh, It is! Otherwise, what's the point of a deposit? Still, I'm not in the business of taking deposits, I just want to sell the car.

Personal or Home Equity?

personal line of credit...approved in less then 30 minutes but it took me a week to get my checks, but i could had the money in my bank account in 3 days if i wanted too, and I did this for that 1983 SC Targa that turned into a bad deal and never got

webini · webini's Garage

I just went through Capital One (Peoplefirst) for my 87. Painless. 5.05%.

You do need perfect credit with these folks though.

bkrygier · bkrygier's Garage

I think its a matter of how good your credit . Its pretty hard not to get a loan these days if your credit standing is good. I was able to walk out the same day with the money I needed. I think that most people that are looking to by this type of car should have the financial end of it taken care of. Have money in hand and ready to wheel and deal.

FenderGuy · 07-21-2004, 01:01 PM

Loan Product Auto Loan Motorcycle Loan
Loan Type New Dealer Purchase Used Dealer Purchase Used Person-to-Person Purchase Refinancing (restrictions apply) Lease Buyout

Capital One Auto Finance only refinances loans you have with other lenders, not including PeopleFirst.com and other Capital One subsidiaries.

Loan for $25,000
Loan Term (months) 24 months

Rate Monthly Payment Total of Payments
6.09 % $1,109.03 $26,616.70

Where did you get that 5.05% ? the above loan is for person-person loan and 24 months the longer out the higher the interest..this is just example but I am trying to make a point that this is the lowest interest from Capital One and the monthly payments are a joke at this rate

S4drifter · 07-21-2004, 01:03 PM

Webini makes a good point. Capital One does want good credit. My credit score is 730 and it still looks like I did not get the best rate at 6%

webini · webini's Garage

My 5.05% was because it was from a dealer. The person to person rates are slightly higher.

Go to: http://www.capitaloneautofinance.com/Public/RatesTerms/Automobiles.aspx and look again at the grid. You can get person to person up to 72 months.

I don't know where it stated that Capital One only does refinances. Again, look at the link. I have had four loans over the years with Capital One and none of them have been a refi.

FenderGuy · 07-21-2004, 01:06 PM

Quote:

Originally posted by webini
My 5.05% was because it was from a dealer. The person to person rates are slightly higher.

Go to: http://www.capitaloneautofinance.com/Public/RatesTerms/Automobiles.aspx and look again at the grid. You can get person to person up to 72 months.

now it makes sense...yeah i know you can get 72 months but i was just trying show you a example to get that 6.09% rate