Anyone know of any tips for getting financing for an 18 year old, 180k mile car?
Just wondering if there is a company out there that will provide competitive (or close to it) financing on an older car.
Try a credit union vs a bank.
Disclaimer : in general it is not wise to finance something this old.
Cars that are 18/180 typically will need further repairs/attention shortly after purchasing. Will you need to finance those repairs also?
Personal Loan if you can qualify. This is about the option you have.....
Then, credit cards, YUM!!!
JohnRW1621 wrote: Try a credit union vs a bank. Disclaimer : in general it is not wise to finance something this old. Cars that are 18/180 typically will need further repairs/attention shortly after purchasing. Will you need to finance those repairs also?
And you've hit on why I'm trying to figure out if I can--all the big repairs/maintenance items have been done on this car already, with the exception of a clutch. And no, I wouldn't finance them.
Like I said, I could pay for this in cash, but I'd be tapping into my emergency fund.
Ah, the smart decision is to buy something cheaper. I just know that in 5 years I'll be lamenting this as one that got away.
Thinkkker wrote: Personal Loan if you can qualify. This is about the option you have..... Then, credit cards, YUM!!!
Yeah, or lines of credit attached to your checking account, but those are often worse than the CC.
EDIT: a real option is to do a 'friend or family loan'. I won't get into the personal relationship risks of those (gulp), but they can be done and frequently are. Just make sure to draw up actual rates, amortization tables, penalties, etc beforehand to make it as smooth as possible.
EDIT EDIT: Actually, berk the emergency fund. Credit cards and lines of credit are perfect for that. The point is you don't plan to use it, but in an EMERGENCY, it is there for you.
Is collector-car financing an option?
Thinkkker wrote: Personal Loan if you can qualify. This is about the option you have..... Then, credit cards, YUM!!!
NO! I finally got my credit cards paid off, and all before the 0% interest rate expired. I'd like to keep them that way.
There's a difference between dipping into the emergency fund, and totally depleting the emergency fund. Which one are we talking about here if you were to pay cash? If you could replenish what you took from the emergency fund in like a week or two I'd just buy it outright. Financing something like this sounds like a really bad idea to me, but everybody has different levels of risk tolerance when it comes to finances.
This sounds like an emergency to me!
Thinkkker wrote: Personal Loan if you can qualify. This is about the option you have..... Then, credit cards, YUM!!!
This. Most lending institutions will not offer loans on vehicles over 5 years old.
STM317 wrote: There's a difference between dipping into the emergency fund, and totally depleting the emergency fund. Which one are we talking about here if you were to pay cash? If you could replenish what you took from the emergency fund in like a week or two I'd just buy it outright. Financing something like this sounds like a really bad idea to me, but everybody has different levels of risk tolerance when it comes to finances.
This sounds like the best option, just pay back into the emergency fund what you take out if its feasible. That way you aren't incurring interest and fees, you are just paying yourself back for "self-financing" the purchase. If the car was newer OPM would be viable, but not with that age and mileage.
Bobzilla wrote:Thinkkker wrote: Personal Loan if you can qualify. This is about the option you have..... Then, credit cards, YUM!!!This. Most lending institutions will not offer loans on vehicles over 5 years old.
And many won't allow a loan on anything past 100k in mileage.
mtn wrote: Like I said, I *could* pay for this in cash, but I'd be tapping into my emergency fund. I just know that in 5 years I'll be lamenting this as one that got away.
Let it get away. I can assure you I've had several cars that I KNEW were steals and that I desperately wanted, but "want" and "need" are two different things. Only you know your emergency funds' purpose, but I wouldn't dip into mine for a car. As much as it sucks, if you can't do traditional financing then just let it go. It'll suck, but you'll get over it.
401K loan is quickest and you can write off the interest. Not advisable though. Nobody is doing loans like that. Even the "buy here pay here" guys don't touch cars that old or with that sort of mileage.
A signature loan with a credit union is a small unsecured term loan at a fixed APR, but you typically have to have direct deposit to an account at the CU and some history there as a client before they will approve you.
So, what is it?
Is this an air cooled 911 or a V12 Ferrari? Because that's the only way that this idea even comes close to being a good idea.
If it's only a few grand, how about taking a short term loan out of your 401k?
You could have the payments automatically deducted from your paycheck and any interest would be paid into your account. Also, if you were so inclined, you could reduce your 401k contribution by the same amount that your loan payment will be so the amount taken out of your paycheck will not change. It's essentially free money, from a certain point of view. :)
Is this about the e36 M3?
I say call every credit union you can get a hold of, SOMEONE has to be willing to lend you the money. My CU's policy is that they will basically lend on anything worth more than $3k, at 1.5% for 36 months or 2.5% for 37-60. They didn't bat an eye when I asked about a 95 Landcruiser with over 200k, which I ultimately ended up not buying.
You seem to be a pretty fiscally responsible guy, judging by some of your other posts I've seen. As long as it isn't gonna bankrupt you if the car breaks, I say berkeley it and buy the thing.
It is about the E36 M3.
If I felt better about driving it through the winter, I would. But I'd feel bad driving it in the winter, which means a winter beater takes top priority.
Bummer.
(and no, I will not do a 401k loan)
My 328IS was fantastic on snow tires...just sayin 
Furious_E wrote: My 328IS was fantastic on snow tires...just sayin
I don't want to expose it to salt
mtn wrote: (and no, I will not do a 401k loan)
Good call.
I did that last year because I had no other source of quick cash to help pay off the divorce costs.
2.5 months later I was laid off and had no way to pay it back. When I filed my taxes this year I think it was $4600 I owed because of that.
z31maniac wrote: 2.5 months later I was laid off and had no way to pay it back. When I filed my taxes this year I think it was $4600 I owed because of that.
BTDT, as have my parents. Don't do it. Life can catch you out and then you pay big penalty fees and have set back your retirement savings too.
Credit union
My credit union - Delta Community- lends based on nada book value alone. Nothing else. Look up the book price for the same year and mileage of what you are buying, and they'll lend up to that amount.
I used them to keep from dipping into savings when I bought my 99 Miata in April, since I bought the car before selling the car it replaced. Their rates were awesome then as well.
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