Finance Question...
Melting Slicks
Joined: Apr 2002
Posts: 3,268
Likes: 2
From: Minnesota in the summer, Las Vegas in the winter
Before I got a corvette I had to be 100 percent debt-free. One of my personal guidelines was to only buy cars that I could pay cash for. I do not borrow money for my hobby. My personal philosophy.
Melting Slicks
Joined: Feb 2004
Posts: 2,039
Likes: 105
From: State of Confusion!!!
2018 C2 of Year Winner
Just for the record...I paid cash for my 'Vette, but I have used equity loans for vehicles and will do it again I'm sure!!!
Thread Starter
Instructor
Joined: Jan 2007
Posts: 219
Likes: 0
From: Wilmington NC
Capital One mail teaser for up to $30k unsecured/signature loan at 8.99% for 10yrs . I thought it was a little high, but very easy with no collatoral. I too plan to pay off very soon, but am always happy to have the flexibility of a smaller payment in-case Mr. Murphy steps in and causes financial troubles.
Cash is always the answer, only my wife takes it as soon as I save it, so I pay big payments on everything to keep less cash laying around.
Cash is always the answer, only my wife takes it as soon as I save it, so I pay big payments on everything to keep less cash laying around.-Shark Mann
Last edited by Shark Mann; Apr 5, 2007 at 07:05 PM.
Le Mans Master
Joined: Oct 2005
Posts: 6,247
Likes: 471
From: Glen Allen, VA
I borrowed a little bit to get mine, most of it was cash. There were several reasons, and I consider myself a very good money manager. I had recently gone through a divorce and my credit had taken a hit, so I needed something to build it back up. I've gone from 2 incomes being late on house payments and car payments to single income, paying extra on the house every month, and own every car outright now. I now have the cash to pay off the loan right now, but prefer to keep the cash in the bank for emergencies, so I don't have to go to a credit card for emergencies. A good option is if you have a cash value life insurance policy, you can borrow against it, and then you'd be paying yourself back.
Pro
Joined: Oct 2005
Posts: 658
Likes: 0
From: east rutherford new jersey
i thought of every which way to pay for mine. financing through a dealer (thought better of it) borrowing from my 401k (thought better of it) taking out some when i refinanced (did that, but decided my house needed some work instead of a vette) and also thought about going the credit card rout (i actually have excellant credit).
i finally just paid cash. it was only 7k (still a lot), but its paid for (not the insurance yet, and it isn't registered
)
you really need to do what is best for you, but you do (imo) need to think long term also. getting in to much over your head, can make that dream car a real nightmare.
i finally just paid cash. it was only 7k (still a lot), but its paid for (not the insurance yet, and it isn't registered
)you really need to do what is best for you, but you do (imo) need to think long term also. getting in to much over your head, can make that dream car a real nightmare.
Le Mans Master
Joined: Aug 2003
Posts: 7,720
Likes: 12
From: Chattanooga TN
Pay cash or don't buy it. I would never borrow on my house for anything. When I pay it off, I will not borrow against it. 401k loan should be a last resort, you lose the interest it was gaining and pay interest to borrow your own money. Almost any decent house will appreciate, a collector car-maybe. Look at 55-57 shoebox Chevys. They went out of sight a few years back, but have cooled considerably. A bumper C3 is likely to keep rising in value, but no way I bet my house or 401K on it. My .02
Pro
Joined: Apr 2007
Posts: 528
Likes: 9
From: Grand Rapids Michigan
I'm new to the forum, though I have been lurking for a long time. I appreciate everyone's different views on financing. I want to buy my Dad's 79 Vette. It's been in the family since 1989 and we have done most of the work to it. So while it's nothing special to the market, it's the best Vette in the world to me. So I can but it for $7,500 (family and sweat equity discount). The car is all original and a great 10 footer. It is mechanically sound with only 78000 miles (most of which were put on by me). Now, it's worth on the common market $10K-$11.5K on a good day. I don't have the cash to buy it, but one of these loans looks good. Since I will have instant equity in the car (by nature of the low selling price) wouldn't that help justify the financing of a toy? Granted it's not the investment of a lifetime, but I'm trying to rationalize, here. Feedback, positve or otherwise is appreciated. Thanks for the great forums. Whether I buy the car or not I'll be around reading and learning!
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Melting Slicks
Joined: Jul 2004
Posts: 3,296
Likes: 8
From: Avon, Indiana
If you finance a car, make sure you have substantial equity in it. The down payment should cover tax and license and a whole lot more. That way,if things get tight, you are not buried in the car and can quickly sell it to eliminate the payment and protect your credit.
Finance it for the shortest term you can afford, and pay extra when you can.
Finance it for the shortest term you can afford, and pay extra when you can.
Le Mans Master
Joined: Nov 2001
Posts: 8,647
Likes: 1,871
From: LONG ISLAND
2025 C3 ('68-'73) of the Year Finalist - Unmodified
2024 C3 of the Year Finalist - Unmodified
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I'm new to the forum, though I have been lurking for a long time. I appreciate everyone's different views on financing. I want to buy my Dad's 79 Vette. It's been in the family since 1989 and we have done most of the work to it. So while it's nothing special to the market, it's the best Vette in the world to me. So I can but it for $7,500 (family and sweat equity discount). The car is all original and a great 10 footer. It is mechanically sound with only 78000 miles (most of which were put on by me). Now, it's worth on the common market $10K-$11.5K on a good day. I don't have the cash to buy it, but one of these loans looks good. Since I will have instant equity in the car (by nature of the low selling price) wouldn't that help justify the financing of a toy? Granted it's not the investment of a lifetime, but I'm trying to rationalize, here. Feedback, positve or otherwise is appreciated. Thanks for the great forums. Whether I buy the car or not I'll be around reading and learning!
Give him what you have saved so far as money down and ask
that he give you an interest free or a small, yet fair "FAMILY" interest rate loan.
F.Y.I........... some FATHERLY advice :
If you have saved nothing to put down & contribute, I WOULDNT ASK !!
Racer
Joined: Sep 2006
Posts: 469
Likes: 0
From: Sandy TX
Pay cash or don't buy it. I would never borrow on my house for anything. When I pay it off, I will not borrow against it. 401k loan should be a last resort, you lose the interest it was gaining and pay interest to borrow your own money. Almost any decent house will appreciate, a collector car-maybe. Look at 55-57 shoebox Chevys. They went out of sight a few years back, but have cooled considerably. A bumper C3 is likely to keep rising in value, but no way I bet my house or 401K on it. My .02
If you can afford the payment, buy it/finance it any way possible. If you're contemplating some ultra-rare/expensive car that's worth more than your house, I'd say to forget it.'57 Chevy's taking a tank?
$170,500.00 at last week's Barrett-Jackson:
http://www.barrett-jackson.com/appsl..._LotNumber=687
Le Mans Master
Joined: Nov 2004
Posts: 7,186
Likes: 45
From: detroit area
hustle...get money...hustle more...get more money.... buy vette.....hustle even more....buy mods........ stop hustlin for a short time to work on vette..... continue to hustle..... drive around the block....hustle to buy paint......hustle while in paint shop...get money....... hustle....... then drive and pick up ladies and drop them off at the bus stop.......hustle more...then sleep....then hustle........
b
b
Le Mans Master
Joined: Nov 2001
Posts: 8,647
Likes: 1,871
From: LONG ISLAND
2025 C3 ('68-'73) of the Year Finalist - Unmodified
2024 C3 of the Year Finalist - Unmodified
2023 C3 of the Year Finalist - Unmodified
hustle...get money...hustle more...get more money.... buy vette.....hustle even more....buy mods........ stop hustlin for a short time to work on vette..... continue to hustle..... drive around the block....hustle to buy paint......hustle while in paint shop...get money....... hustle....... then drive and pick up ladies and drop them off at the bus stop.......hustle more...then sleep....then hustle........
b
b
now thats great "fatherly advice" as well !!!
Le Mans Master
Joined: Jan 2007
Posts: 7,869
Likes: 3,271
From: Omaha NE
2025 c3 ('74-'82) of the Year Finalist - Unmodified
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2020 C3 of the Year Finalist - Unmodified
Get a loan. I did. I paid my Vette off in May of 1980................
It would have been nice to pay cash, but I would not have an extra 8K in my pocket right now if I had....
It would have been nice to pay cash, but I would not have an extra 8K in my pocket right now if I had....
Pro
Joined: Apr 2007
Posts: 528
Likes: 9
From: Grand Rapids Michigan
DADS ARE USUALLY GOOD FOR LOANS OF SOME KIND !!!
Give him what you have saved so far as money down and ask
that he give you an interest free or a small, yet fair "FAMILY" interest rate loan.
F.Y.I........... some FATHERLY advice :
If you have saved nothing to put down & contribute, I WOULDNT ASK !!
Give him what you have saved so far as money down and ask
that he give you an interest free or a small, yet fair "FAMILY" interest rate loan.
F.Y.I........... some FATHERLY advice :
If you have saved nothing to put down & contribute, I WOULDNT ASK !!
Son-ly advice....don't tell the buyer of your car that they are in for major repairs before you've signed off on a price! Even if he is your son!
