" So why don't you cool it with your preconceived notion as to how you think everyone should answer ..."

Thought it was a public forum...ironic...or moronic...can't make up my mind

 

True. Plus you have to realize that since mods almost never add to the resale value of the car, the entity issuing the loan has no security interest to protect him. It is simply a signature loan, like a credit card loan, so the interest rate would have to be correspondingly high to cover the risk. 22% money isn't a very good deal.

If you have to borrow money to mod your car, your best bet is a home equity loan. But if you have the equity to take out such a loan, you probably aren't so short of cash that you need a loan in the first place, or you're trying to live way beyond your means. Neither is a good situation to be taking on more debt.

 

That's exactly my point. Isn't it silly of me to tell him how to respond...?:o

 

...move home with your parents!
Tell them you need to save some money for mods... I am sure they'd understand...hehe

 

I know this guy (Vito) that always has money to lend....the vig's a bit steep, you make payments daily and you're the security interest but other than that it's a great deal. Oh yea....don't miss a payment.

 

.......

 

Many shops use a third party financial institution for customer financing. However the interest rate is pretty high. I have it in my shop but have only used a few times. I even discount the final bill a bit if the customer pays in cash or by check, with these airline mileage cards they processing kicks my azz in fees, especially if they bill is over $2500, the banks ding me pretty good so I have to figure that in as part of the price. One time a customer charged a $12k bill on his airlines card, that ate up almost $300 in profit! I am almost to the point of not taken any plastic.

 

 

1% per day and you get Sundays off.

 

There's a reason it may seem that lots of "young mustang guys" have money for mods. As a fairly recent graduate of a school (I still live nearby) that is known for educating a lot of people from wealthy families, that's just it. It was almost unbelieveale at how much of their parents' money some of my former classmates ate up each month in tuition/living expences/"spending money". I was honestly shocked. There's many different possibilities. Some have their cars and living expences paid, and 100% of the money they earn from working can be dumped into their cars. They could also be up to their eyeballs is debt, and living in a dump. You really never know, so you can't compare yourself to them.

Personally, I don't think it's a good idea at all. I minimize the unnecessary money I put into my car, because as much as I hate to say it, I financed the car. I want to put money into paying off the loan instead of mods, even though I've got a good rate. I bought a few things at first, nothing major, and now I limit my spending to maintenance. I use my credit cards frequently, usually for gas, and all online purchases. But like most here, I pay the balance each month, usually more often, so I earn cash back, and don't pay interest. The only interest I pay is my car loan, and student loans. Credit cards offer some security for online/telephone transactions, ad well as earning rewards. I do not use them as loans.

If you absolutely must finance your mods, I would reccomend finding a card that has a special offer or introductory rate without a time limit. Put the purchase on the card (balance transfers to that card are ok as long as there's no fee) and then pay off the card as you see fit. Just make sure any time limit imposed on the special rate is long enough for you to pay off the balance. You can usually find something that will give you under 5% for the life of the loan, as long as you have good credit. Of course you need to make sure that you don't put any purchaces on that card at the regular rate, because those amounts will be paid off last.

 

I was raised in a German farming town in the midwest. All of the farmers said if you can't pay for it you don't need it. Wait until you can pay cash for it. I had to laugh when I saw a new store open in Daytona Beach "Rent To Own Wheels" . Where else can you get those 22' chromes for your Impala. I wouldn't buy I new Vette if I could't pay for it,let alone start moding it. Thats just crazy.

 

When I was 23 I had to get a Firestone credit card to replace the tires on my Formula... a great lesson.

I spent 10 years thereafter rebuilding my credit because I way over-extended my means. So you can listen to the people saying that we are being critical, or you can learn from people who know what they are talking about from experience.

If you cannot afford mods - you cannot afford mods.

 

Or - perhaps, the people here have learned (or were smart enough) to understand personal finances.

I learned the hard way - and set myself back some years. So you can call people precocious - but then again, perhaps they have something of value to say as well.

 

Yep, I charge often and pay in full with my AK Airlines card. You simply cannot get too many miles. Heh heh, thats the one I gave to TJWong (see above) when he did my tune.

On topic... Buy mods with an ongoing payment? Sure, why not? If you cant otherwise afford to pay cash but use good common sense in regards to taking on too much debt I dont see it as being any different than using credit for any other purpose.

There are many truly well off people that frequent this forum. There are also many who like to put on a brave show. The truth is most people are not wealthy and can benefit from the prudent use of credit. There is no shame in trying to improve your life as best you can within your means.

 

2005 Corvette: $40000

Headers: $2000

Exhaust: $1200

Tires: $1300

Being 25 and having a Mastercard: PRICELESS

 

coming over from the mustang and its mods, what you forgot to factor in is the dreaded "corvette tax"

 

How did you get them to take MC for your Corvette? I tried, but they would not even take it for the deposit.

The Jeep dealer however, had a new finance manager and he took it.........

 

Well said. I know a guy who spent a lot of money on mods and put it all on his credit card (that he could not afford to pay off). This is a generally very smart guy with a good job. He wound up driving an old beater, selling his house and living with his parents while in his mid 30's. It has taken him three years to recover and he still can't afford another Corvette.

No, you didn't ask for this advice but I'm giving it anyway. You should only borrow money for things that can be sold for more than you owe, or for true emergencies.

And one more thing - forget about how the guys with Mustangs do it. Trying to keep up with other people is the single biggest reason that people get into this kind of bind.

 

 

Most should hold off on financing mods - your interest only loan is about to bite you in the ***