For those who doubt my posts...

Matt Monson · 10:29 AM

That talk about how guys are over-reaching and financing these cars. I regularly see conversations about this topic on FB and Rennlist. I think it’s more common than we think. $850/mo is more than my two new cars combined!

http://forums.pelicanparts.com/uploads26/6DA9624E_7A00_414F_B488_062458A240DB1556898105.png

colingreene · 05-03-2019, 07:46 AM

Even if it is true, not a whole lot any of us can do to stop it.

Mocker · 05-03-2019, 07:56 AM

linkee no workee

Unobtanium-inc · 05-03-2019, 08:40 AM

I've sold a few cars over the years to people who financed them. Not many but a few.

---Adam

BLACK3.2 · 05-03-2019, 08:57 AM

I wouldn't say it's overreaching at all. Not in the least. It makes MUCH more sense than what people typically do, which is finance a new car that immediately loses 1/3 of its value upon purchasing, then depreciates 10-15% a year.

By contrast, these cars may fluctuate slightly with market favor or even appreciate in value over time, sometimes beating inflation. That's smart use of loan money, if you ask me.

MrBonus · 05-03-2019, 09:00 AM

Quote:

Originally Posted by BLACK3.2

I wouldn't say it's overreaching at all. Not in the least. It makes MUCH more sense than what people typically do, which is finance a new car that immediately loses 1/3 of its value upon purchasing, then depreciates 10-15% a year.

By contrast, these cars may fluctuate slightly with market favor or even appreciate in value over time, sometimes beating inflation. That's smart use of loan money, if you ask me.

Except classic car loans don't offer great rates like new cars and generally the people buying them aren't buying them to use as a daily driver.

Matt Monson · 05-03-2019, 09:09 AM

Dangit. Don't know why the picture didn't show. It's a dude with a '95 933 he's selling because he lost his job. He says he "only' has 15 $850 payments left on it. I'll try to upload again later when I'm not trying to work.

BLACK3.2 · 05-03-2019, 09:23 AM

People are idiots. Why on earth would you disclose that you're desperate to sell?

David Borden · David Borden's Garage

Quote:

Originally Posted by BLACK3.2

People are idiots. Why on earth would you disclose that you're desperate to sell?

No kidding. Talk about falling on a sword... That poor guy is going to get hammered by low ballers because of it.

Matt Monson · 05-03-2019, 10:57 AM

They are telling him $35-45k. It’s a tip. I think he’s gonna get hosed since he’s gotta sell.

Rawknees'Turbo · 05-03-2019, 12:04 PM

Financing was the only way for me to get my 1987, and that was back in 2006, when Turbos were cheap compared to today. I raced motorcycles for 10 years prior, so had no real savings, obviously.

Matt Monson · 05-03-2019, 12:08 PM

I personally put financing a used $25-30k car in a different category than financing a $45-50k one. Though it seems pretty common with what I see posted elsewhere. Ultimately, it's their money to spend how they see fit. I just find it daft.

1979-930 · 1979-930's Garage

I have a childhood scar that prevents me from taking on debt.
For that reason my company will never be huge and I will never be stupid rich. But the bank will never repossess what I have.

Unobtanium-inc · 05-03-2019, 01:16 PM

I financed my first Porsche, this was 1995, I was a broke college kid with good credit, so why not?

---Adam

Matt Monson · 05-03-2019, 01:23 PM

And that was what? $8k? $10k? $250? $300/mo? It’s not the same thing and anyone who pretends it is is only kidding themselves. A guy who needs to finance a 993 in today's market can’t really afford the car.

David Borden · David Borden's Garage

Quote:

Originally Posted by Matt Monson

And that was what? $8k? $10k? $250? $300/mo? It’s not the same thing and anyone who pretends it is is only kidding themselves. A guy who needs to finance a 993 in today's market can’t really afford the car.

I think one of the biggest issues is if you can't afford to buy the car, or the vast majority of the purchase in cash... and something goes wrong with it. I.E. Needs a trans, engine build or seal etc... they are in deep $h1t.

We tend to be super conservative with buying anything with finance. Others think nothing of having two $60-70k 72-84 month notes on quickly depreciating luxury vehicles and a 30-year note on a $200k motorhome... and on top of that, a home mortgage. While not for us, I'm sure its fun while it lasts!

With that said, when I was in my mid 20's I refinanced a car that we had paid off to purchase my FFR Cobra kit. Probably a stupid thing to do for a freshly married couple and a new home mortgage. All in all, I would have done it again in a heartbeat... Sometimes those risks pay off as it was the link to an incredible amount of fun and the catalyst for meeting many of our life long friends.

ShopCat · 05-03-2019, 02:01 PM

Quote:

Originally Posted by Matt Monson

And that was what? $8k? $10k? $250? $300/mo? It’s not the same thing and anyone who pretends it is is only kidding themselves. A guy who needs to finance a 993 in today's market can’t really afford the car.

not to mention the cars weren't 30-40 years old in the 90s... no one is going to bat an eye at financing a 997 today.

Cajundaddy · Cajundaddy's Garage

There is a time to finance and a time to pay cash.

If you have great credit, solid income stream, and don't need to finance, it might make sense. I got my 2009 Cayman in 2015, had the cash, but my bank was starving for loans so they offered 1.99%. I put down $10k and financed the balance. I was pretty sure I could make more than 1.99% by putting the rest of my cash to work. In this case it was a good move for me and will be paid off at the end of this year with rock bottom interest expense.

littleoldman · 05-03-2019, 02:52 PM

Cajun is right.
Even if you have the car why not borrow under 3% and buy almost anything in the stock market and beat the 3%

Rawknees'Turbo · 05-03-2019, 04:16 PM

Quote:

Originally Posted by Matt Monson

I personally put financing a used $25-30k car in a different category than financing a $45-50k one. Though it seems pretty common with what I see posted elsewhere. Ultimately, it's their money to spend how they see fit. I just find it daft.

Good point, and I agree. In fact, I probably could not have realistically financed a $45-50K car (not talking about cash advances on multiple credit cards, etc., to make up the difference

).

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.

Quote:

Originally Posted by David Borden

I think one of the biggest issues is if you can't afford to buy the car, or the vast majority of the purchase in cash... and something goes wrong with it. I.E. Needs a trans, engine build or seal etc... they are in deep $h1t.

. . .

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.