HD Roadking Classic

I'm new to the forum, don't yet own a Corvette but would love to find a C5 or C6. I've owned a couple of Nissan Z's but my wife made me get rid of them and I want a real American made sports car, now that the wife is gone and I'm going through a divorce.

The problem is I don't have all the money right now to pay cash. I've found nice cars, but my bank and credit union won't give me a loan secured by the car on anything older than a 2007. I can get an unsecured personal loan, but the interest rates are high. I can't get a second mortgage because of the divorce.

It's really stupid because a 10+ year old Corvette can be low mileage. It's not like a 10+ year old daily driver Accord or Camry that has 150k on it. Seems like it should be based on mileage and not age, but it's no use talking to them.

Maybe I should just wait til after the divorce and I can save some cash.

I can't be the only one with this problem. Any suggestions?

bluemike28

Reach out to PenFed (Pentagon Federal Credit Union). They were willing to write a note on my '03 AE and the rate was quite good (around 1.9% top of my head).

Best of luck!

BurntNoodle

I would also suggest PenFed Credit Union. They gave me a loan on my 02Z... Was 5 years long at 1.99% interest rate.

The only thing they made a requirement on an older vehicle is that the loan length could not be more than 5 years long.

John

BlackSVT03

I financed my last 03 Z06 and my current 01 Z06 through them.

GRAND SPORT GUY

I have had luck with my credit union for older cars by showing them that my State Farm agent will write a policy that names the CU as the lien holder, and cover the car in case of complete loss for more than the amount of the loan. For example, State Farm covers my 1982 CE with an agreed value of $27,000.00, and my C5 to an agreed value of $25,000.00. (I have added a lot of custom stuff to it and forwarded them copies of all accessories and labor)

Good luck, I hope that will flip the switch for your credit union!

-Ray

Nabcoinc

Usually the CU will finance if you get a 3rd party appraisal that show the value of the car exceeds the loan amount. I was going to finance my recent purchase and that's what I had to do...decided to only finance about a third of the cost, it's a 2002. They also gave me a bumper to bumper extended warranty on it covering everything for 48 months for $1600 with a $250 deductible....

Crashz06

Used Wells Fargo Dealer Services on my 03Z. Interest wasnt too bad

killian96ss

Same here for my 02Z, but the only reason I got a good rate was because I paid half cash & financed the other half.

Steve

REKCUF

I'm in California & I used Ventura County credit union. It was a painless experience.

Acid666

I looked into PenFed because a friend used it to get his C5, but told me he had a B#tch of a time dealing with them and transferring the title over.
I looked into Lightstream and went with them. I can't remember but I think I'm at somewhere around 4% APR with mine and I've got the title in my name straight from the bill of sale. No transferring it to them for the bank to own the car. I've got impeccable credit so I was looking for a lower APR, but on a car that's that 15 years old you're not going to find too many places that will go below 3 or 4%.

friou

As above, give "Lightstream" a try. Good reputation and folks I know were very pleased with their service in financing older performance cars, rods, sports cars etc. with very reasonable terms. Good luck!

Vetteman Jack

I've never had a problem getting a loan for an older car at my credit union. They usually look up the book value and go from there. If yours won't make the loan, shop around at other credit unions and see what they say.

jjaaam

I agree 200%.

Financed my 2003 with 85k with Dort Federal CU for 5 years @ 3.03%. All they did was look up NADA value and went from there. No third party appraisal or anything.

Bob_VII

I financed both my '99 'vert (in 2008) and a '78 Catalina (in 2014!) through my insurance company, USAA. Might be worth looking into if your insurance can do something similar.

Mike94ZLT1

If you have to finance a 13+ year old car, don't.

02BlownZ06

Good advice right there.

I would add to that and say if you can't buy outright and are forced to take out a loan, use the 3 year rule. If you can't afford to pay it off in three years then you can't afford it. It is a tough rule, but you will never get upside down if you live by this rule, always keep that vehicle until it is paid for, sell outright, buy outright, keep the stealerships out of it. In the meantime get some sort of savings/investment accounts going that you contribute a little to all the time and eventually you will be paying cash for vehicles.

It's pretty nice to have a clear title on a bad azz ride and I don't feel near as guilty dropping thousands on additional mods. Good luck!!

BRKLYN

Me, I would wait till the divorce. And join a credit union. I sold cars, when banks wouldn't approve financing because to old, or high mikes, credit unions came through. Your beacon had to be up there as well. Happy hunting..

Ducati Guy

Loan or no loan you might be better off until a major distraction and potential headache is behind you. Besides.........would the purchase of a car while you are still married be considered marital property? If so she will possibly be entitled to 1/2 it's value.

acuevo

Really have to disagree here. Lots of people here seem to have financed really nice, really low mileage c5's. Are you saying all of those people made poor financial decisions?

Everything depreciates, just look at the ZR-1s that were going for around 100k 5 or 6 years ago that are now going for 50 to 70. No matter what you do when you finance a car you're losing money in the end. Considering that, I don't think its fair to suggest it would be a poor decision to finance one of these.

End rant...

OP: As others have said, Pen Fed is great, very helpful and friendly. Very good rates - I believe the lowest for a 5 year used loan is 3.49% right now which is what they gave me. I would however agree with some others here in saying it might be best to wait till the divorce is over and done with.

unlvrebel

"Poor financial decisions" are in the eye of the beholder. Many folks subscribe to "if you can't stroke a check for a toy, you probably don't need that toy..."

I fall somewhere in the middle. A new boat is a big purchase that loses a **** ton of value quickly, but comes with a nice warranty. I'd finance (and have) that. Same goes for a car.

When you get to the used side of the equation, things change a bit (for me). At 13+ years, odds are there will be some costs that will not be picked up by a warranty. Having a payment and paying for maintenance... I try to avoid that. And if a 13+ year old car has a catastrophic failure... You're still on the hook for paying the note AND fixing catastrophic failure. So I would err on the side of caution and pay cash.

ALL THAT being said, money is cheap right now. If you are fiscally responsible, and are invested such that you are earning more on that $15K to $20K than the note rate; then hey, go for it.

As with anything, your mileage and risk tolerance may vary.

As to the OP, I'd wait out the divorce.