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67LS1
67LS1 Reader
9/27/22 12:56 a.m.

I to have been fortunate to have never had to finance a car. But then I'm also 65 and I've also never bought a new car.  
But if I were to buy a car (new, used, classic) and the interest rate was less then I was earning through investments, I'd finance it.

Wicked93gs
Wicked93gs Reader
9/27/22 8:38 a.m.

While its a tempting way to acquire a classic....I simply don't finance cars at all. I have done it once...once was enough for me...never again. Rent/Mortgage is one thing....but I prefer to keep financial shackles to a minimum.

Kreb (Forum Supporter)
Kreb (Forum Supporter) GRM+ Memberand PowerDork
9/27/22 9:25 a.m.

I'm struggling over this one right now. I've always done things the cheapskate way - often to my detriment. But my wife has come into some money. Since I've been the primary breadwinner for the last 35 years I feel like it's not out of line for me to ask her to finance a car that's relatively finished instead of a big project. After all, I've kept her in a succession of new cars while I drive 15YO stuff. But then, asking for stuff isn't my way. So perhaps I finance it and let her make payments? But interest? 

93EXCivic
93EXCivic MegaDork
9/27/22 9:29 a.m.

I would never finance a toy or a daily driver for me. But I will finance a car for my wife to make sure there is a newer car that I don't have to worry about at home. That is worth the extra cost for me. 

EmmaMcgee
EmmaMcgee New Reader
2/27/23 3:09 p.m.

Financing a classic car is definitely a tricky decision, but I think it can be a good choice if you're smart about it. Personally, I think it makes more sense to take out a loan to buy a well-maintained classic car instead of a fixer-upper that needs tons of work. You'll save money in the long run and enjoy driving your dream car. Of course, it's important to be careful with your finances, especially when it comes to loans and interest rates. I recommend consulting with a financial expert or even reaching out to Mortgage Broker Cambridge to help you plan your budget and figure out the best options for your specific situation.

Datsun310Guy
Datsun310Guy MegaDork
2/27/23 3:20 p.m.
NickD said:

if you can't afford to pay for a toy out of pocket, then you don't really need it.

We had two drivers and three cars in the 90's.  Third was a Datsun 1600 roadster.  If I can't pay cash I can't get a toy.

If it breaks down I have to do all the mechanics.  If it takes me 6 months to change out the cylinder head it sits for 6 months then.  It's a hobby that needs to run frugally.   

karplus2
karplus2 GRM+ Memberand Reader
2/28/23 9:08 a.m.

The guy I sold my 72 240Z to financed it. I was a little shocked that someone would do that. He messaged me from the bank asking me for the VIN, which I had given him multiple times already. I had to explain that VINs from a 70s Datsun doesn't look like a VIN from a modern car. He must have gotten that across to the bank because he showed up with cash.

David S. Wallens
David S. Wallens Editorial Director
3/1/23 11:36 a.m.

Something to think about: At the bigger end of the spectrum, bigger gains can be made–and lost, too, of course.

For example, what if you had financed a Testarossa two years ago?

Paul_VR6 (Forum Supporter)
Paul_VR6 (Forum Supporter) UltraDork
3/1/23 11:50 a.m.

Had I financed a 70s 911 in the early 2000s I would have had my retirement taken care of by now. laugh

frenchyd
frenchyd MegaDork
3/1/23 11:54 a.m.

My approach is to buy what I can afford to lose.  
   I spend $500 for a car and race prepare it.  I might have another $4500 into it.  $5000 I can walk away without feeling bad.  
    If it should be more valuable I'll profit.  

Ian F (Forum Supporter)
Ian F (Forum Supporter) MegaDork
3/1/23 12:09 p.m.
NickD said:

I don't finance any car. A classic car is, 9 times out of 10, going to be a toy, not a necessary vehicle. And if you can't afford to pay for a toy out of pocket, then you don't really need it.

I buy cars the same way, but that is looking at the car as a toy and not as an investment.  Most folks financing these purchases could pay for it in cash, but chose to do other types of investments with their money.  They also tend to be less risk-adverse than I am. 

Tom1200
Tom1200 UberDork
3/1/23 12:32 p.m.

I played with the idea but the rates for classic car financing tends to be a bit higher so I've managed to avoid doing it.

At the current rates $21,500 is the most I could justify financing and so 30K is going to be the number I top out at.

Our most expensive car payment to date was $375 per month...........Like I've said in numerous posts; we're cheap.

DirtyBird222
DirtyBird222 PowerDork
3/1/23 12:35 p.m.

I did once. I had the cash to buy it; however, my ex-wife was hesitant to dump that much cash into a car all at once. I reached out to my credit union and they actually had a really lucrative lending option for classic cars. I took that info to her and she okay'd it. Then I explained to her how much more for the car we would be paying over the life of the loan, and she told me to pay it off. I then proceeded to make a boatload of cash off that car post divorce and didn't have to split the proceeds with her. 

DirtyBird222
DirtyBird222 PowerDork
3/1/23 12:39 p.m.
Ian F (Forum Supporter) said:
NickD said:

I don't finance any car. A classic car is, 9 times out of 10, going to be a toy, not a necessary vehicle. And if you can't afford to pay for a toy out of pocket, then you don't really need it.

I buy cars the same way, but that is looking at the car as a toy and not as an investment.  Most folks financing these purchases could pay for it in cash, but chose to do other types of investments with their money.  They also tend to be less risk-adverse than I am. 

See above, sometimes you have to play games to get what you want with your SWMBO

paddygarcia
paddygarcia GRM+ Memberand Reader
3/1/23 2:04 p.m.

I sold my '72 'cuda 340 to a guy who financed it. Seemed like a bad idea to me but he died about 2 months later, so maybe there's a carpe diem aspect.

Ian F (Forum Supporter)
Ian F (Forum Supporter) MegaDork
3/1/23 2:48 p.m.

In reply to DirtyBird222 :

So... SWMBOO? (occasionally obeyed) wink

DirtyBird222
DirtyBird222 PowerDork
3/1/23 3:02 p.m.

In reply to Ian F (Forum Supporter) :

Maybe there's a reason she's an ex now devil. The new one doesn't care what I do so long as I take care of the house and meals. 

But if you have the cash and interest rates are reasonable, sometimes it's better to have that cash sitting in another investment making you money vs being completely wrapped up in a car purchase (new or classic). 

Tom1200
Tom1200 UberDork
3/1/23 3:48 p.m.
DirtyBird222 said:

In reply to Ian F (Forum Supporter) :

Maybe there's a reason she's an ex now devil. The new one doesn't care what I do so long as I take care of the house and meals. 

But if you have the cash and interest rates are reasonable, sometimes it's better to have that cash sitting in another investment making you money vs being completely wrapped up in a car purchase (new or classic). 

I'll put up this scenario; I got offered a 356 for 40K. It was a Vegas car all it's life, we had the cash but it would have run the savings down substantially.

I could have part financed it in order to keep the savings in tact. 

I knew that the car was worth more then 40K but  didn't buy it because I knew that once I had the car fully running I'd be to tempted to sell it.  

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