For those who doubt my posts...

[Jonny042]

Originally Posted by Matt Monson

No, people did not learn their lesson. 7 million Americans are 3 months or more behind on their car payment. Winter is coming. I’ll be buying more cars after the crash.

What??? Really? Holy crap. I honestly don't know how the majority of people sleep at night.

Canada is no better, apparently half of all of us are within $200 of not being able to keep up with our bills and financial obligations on a monthly basis.

[Vaive]

You think car loans are bad? Take a gander at boat loans. 7-10% APR for new boats well over $50K, paid over 20 years. It's a mini mortgage for a depreciating asset, used maybe 10 days a year by the average owner. That $50K boat is worth $20K in 10 years, but the mortgage, err I mean loan for it still has a balance of $35K on it.

Boat repo man will be a growing industry in the next few years.

[Catorce]

Originally Posted by matt monson

i’ll be buying more cars after the crash.

this.

[NYNick]

Financing a classic car isn't a great idea IMO, but I understand OPM, leveraging and opportunity cost.

I was never a big fan of leasing either, even though the old adage says to lease depreciating assets and to buy appreciating ones. Very few cars, even classic 911's, can be depended upon to appreciate. I call breaking even on a classic car a win-win, and that's what I strive to achieve.

The problem with financing (just about anything) is when the market declines or the sheit hits the fan and you need to sell, you risk being upside down in a down market. Not a good place to dwell.

[onboost]

Originally Posted by Catorce

So one of my businesses is a marketing company that sells credit repair products. I am fairly well versed in the nuances of achieving a high credit score, which doesn't necessarily equate to strict financial health....i.e. you can have a great credit score but be upside down on a lot of things. There are some good reasons for financing a car that could help you a lot:

1. You can use the car as a company car.
2. You don't currently have an installment loan on your credit. You need one of each type of loan to raise your score (installment, revolving, etc).
3. You are 1-1.5 years out from buying a house. A good sized car loan a couple years before you buy a home is great for your credit score.
4. You eventually want to finance a more expensive car. For example, Woodside credit, who finances your Lambos, Ferraris, exotics, etc. will NOT finance you unless you have had a similar car loan in the past.

You will note that NONE of these reasons make strict financial sense, but they may make sense for YOU in your situation, whatever that may be.

It really depends on your situation.

This is are spot on.. I've seen this in practice as well.

Originally Posted by Cajundaddy

...or the right latina...

^^Yep, that's for sure!

Originally Posted by Matt Monson

No, people did not learn their lesson. Winter is coming. I’ll be buying more cars after the crash.

^^Hold on, It's on its way!


What I've really noticed about these financed classics is that a lot of those tend to be newbs that may like cars, but aren't car guys.. (if that makes sense). They have jumped on the "classics" band wagon because they read all the Bloomberg, and WSJ articles and now feel that buying a classic is the in thing (read speculation) to do.

They finance a high end classic thinking they're gonna beat the interest by flipping the car down the road and turn a profit prior to paying off the loan. However, for many it just doesn't work.. especially considering many have know clue what they bought.
I had a White House/OMB guy buy my 57 T-Bird. He just had to have it, not so much that he's gonna use and enjoy it the way I did, but primarily because as he put it "its all the talk around the water cooler." WTF?

[1979-930]

The only entity making money on our bottom feeder cars is the government.
8.25% when I buy it, 8.25% or more sales tax on the parts to fix it, and 8.25% when I sell it.
The high end cars that have actually appreciated are in the hands of the successful. A guy that finances a car isn’t getting a $200k 911E.


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[onboost]

^^ Yeah, your state and local and possibly county government..

[Matt Monson]

Onboost,
I agree. I would guess that they are under 40, that it is their only and likely their first vintage car purchase. They lean towards 964 and 993, with an occasional g50 Carrera or 930 thrown in. It’s a different owner than even 5 years ago.

[thamlin000]

Originally Posted by Rawknees'Turbo

I've seen people here, and in other threads, mention classic car loans - I didn't know those even existed. My financing was a simple, signature loan from USAA for x amount, and then I covered the difference from savings (probably about 1/3 of the purchase price, If I'm remembering correctly). I then paid off the five year loan in about two years, so interest was minimal.

.

Back around that same time, I was shopping for either a 930 or 993. I was 25 and couldn’t swing $30k, the approx price for either car back then, so I went to get a loan. I thought it was USAA but maybe it was Pentagon? Since the 930 was over ten years old, they would not finance it so I went with a 993.

Nowadays I just pay cash for my cars so I guess I’ll never have a 930.

[David Borden]

Originally Posted by Rawknees'Turbo

... And then shiit piles really high if the owner is not a mechanic/DIY guy (or woman . . . or both!).

I would not even consider owning a car like a vintage 911 if I were not a mechanic; for one, I couldn't afford to pay a shop to work on it, and along with that, many shops seem to be staffed with knuckleheads, slow as molasse bums, and/or crooks . . . all it takes is some steady watching of the 911 tech forum to realize that the options for good, timely, non-ripoff work are slim.

Totally agree, and I don't think I would have purchased any of these cars if I did not do all my own service/repairs and builds.

Being able to do your own work, sorta makes these cars affordable to the average person. Being they will normally hold their value fairly well makes the argument a bit more solid as well.

I do find it interesting that people will think nothing of going out and purchasing a new car and then take a massive hit on depreciation immediately and apparently not make that a consideration in the purchase. Many times, people are thinking about payments vs both sides of the balance sheet.

From that perspective, buying one of these cars starts to make slightly more sense... although I still would not finance a classic car at this point in my life.

[Alan A]

Just curious. For those that wouldn’t finance a classic.

Anyone lease?
Finance a DD?
Take out a HELOC?
Mortgage?

I agree with the idea that if you can’t afford a toy, don’t get it, but if you get a silly low rate I don’t see what’s wrong with a loan. Of course I haven’t practised what I preach - I paid cash for every single non new car I’ve owned, but in principle I don’t see an issue with it.

Disclaimer - I also lease most of my DDs. The only ones I’ve bought were with 0% financing or something practically indistinguishable from it.

[matt930s]

And now you can get a SoFi crowd sourced loan...

MattR

[LUFTKUL]

Why mortgage, lease, or buy when you can become a “custodian”:
https://www.bluechipcar.com/
This seems like a bad idea, but have no experience with it.

[Vaive]

...

Originally Posted by Alan A

Just curious. For those that wouldn’t finance a classic.

Anyone lease?
- All the time, if the numbers make sense, ie if the APR is close to 0% and the residuals are really high

Finance a DD?
- Only of I can get 0% or 1% rates

Take out a HELOC?
- Never

Mortgage?
- Best use of money right now

\.

[JMS935]

Originally Posted by LUFTKUL

Why mortgage, lease, or buy when you can become a “custodian”:
https://www.bluechipcar.com/
This seems like a bad idea, but have no experience with it.

Horrible idea. It’s probably as equally a bad idea as buying fractional real estate, which is a sure fire way to pay way over market.

[dwelle]

i fully understand how to leverage money intelligently with regard to borrowing below what i can generate in a return by taking the same capital and applying it elsewhere. i've played that game before.

but.

if i'm playing that game to make a marginal gain to enjoy a car, i just don't get it. i pay cash for cars. if i can't afford them, i won't buy them. i can't really get into trouble that way, and it removes any excuse to simply enjoy my cars for what they are. at the end of the day, they are just cars to me, not investments. "market value" be damned.

i reckon if i can't afford to wreck it, i shouldn't be owning/driving/enjoying it...

[1979-930]

Dwelle gets it.

I cringe when people say my loan is “x” and I can make “xx” investing the money I save.
No guarantees there bub...




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[Rawknees'Turbo]

Originally Posted by 1979-930

Dwelle gets it.

. . .

???

!!!




TMI, Deez, TMI!!!

[Matt Monson]

Originally Posted by Vaive

...

My answers are the same.

[speednme1]

I don’t get. To each his own. What may not be a good idea at the time can turn into a great purchase and vice versa. My first Porsche (85 Carrera 911) I financed. I bought it for $15k and sold it for $15k, 9 years later. I did spend money throughout my ownership but also learned a lot and made unforgettable memories. Had I bought a Honda Civic for the same money, it would have been just transportation(and a huge loss). Luckily I have been fortunate to buy my later Porsche’s outright(lots of OT). We don’t live forever, sometimes you have to make the choice to live a little and check off that bucket list. I’d rather grow old knowing I have lived then to grow old wishing I have lived. It’s only money, time is a lot more priceless.