What's the least dumbest way to borrow $ for a hot rod?

True. Equity loans typically have long terms. You would effectively be paying off your car loan in 15 or more years, resulting in a whoop of interest....probably more than on a high interest short-term loan.

 

Most of these post have some very good advice. I too would never borrow money to fund a build or buy a rod that is out of my price range to start with. With the economy the way it is right now i would be terrified to borrow money to put into a rod. Myself, i am struggling trying to pay off a couple small loans so i can join the ranks of the "semi debt free" crowd. It will be so nice when the day comes i can say i am free of debt (except my house and wife's car of course).

Great advice everyone!!!

 

DONT BORROW for a toy period,your debt will increase a lot as you will say well I will just charge this one part next thing you know your in the dumper. When I started many years ago I bought a car cheap not my first pick fixed it and made a couple bucks ,then another ,and on and on. I have a car money fund and do not touch any other money,and after a few years I can now buy about anything I want,with just car money.It aint easy that way nor fast but ya never get in trouble and never try to blame debt on that "damn car" Good Luck.

 

I got an e-mail from Habeeb in Nigeria, seems I got a shit load of money just sitting there . He's just looking for people to take fathers money.

You want his phone number ?

 

You should never borrow money to feed an addiction. If I could put a smiley here it would be an "Otis" from Mayberry.

 

The best finance plan is 100% down and no monthly payments.....

 

Don't do it! Never pay interest to anyone. It's just never good.

 

Donno about that. I grew up on ugly street. The further down the road, the uglier people got. And I lived at the cul-de-sac.

Some of you guys sound like I'm asking about mortgaging the whole purchase and getting up to my a** in debt. I originally asked about borrowing a thousand or so to buy what I want before someone else gets it.

It seems like in my part of the country, a perfect situation of an affordable car with the things done that I can't do that is close enough not to break the bank in shipping is rare find.

I've lost a few by not acting immediately. I guess the unasked question is the logic of taking some extraordinary measures if a rare deal pops up.

If no one still likes the borrowing idea, would it make sense to cash in some savings?

 

The most straight forward answer to your question is....If you have to borrow to have a hobby...don't have the hobby.

 

if you need to borrow money to buy a project car, how can you afford to build it...

 

I can't disagree with all the "don't borrow posts". Very sound advise. It gets tricky if you don't have a project. I try and be good with money. But then there's hot rods.....

 

Kustom Chief, I'm not so sure a 63 year old man is going to make much cash pimping on CL.

 

When I was young I would borrow to buy cars and stuff. Not any more. Do yourself a huge favor and wait until you can pay cash for your dream car. And even then make sure you have money in the bank in case Murphys Law visits you. Borrow to buy a house, thats a different story and even then I can tell you I hate having a house payment. Paying interest is throwing your money away. Just my .02 on the subject.

 

uhh, because I'm still employed and making money and can buy things as I go.

I seem to be repeating myself. I'm not borrowing the entire purchase price. I could probably pay of what I borrowing in 6 months.

 

well, that means you can pay cash six months from now......and NOT have to borrow anything..

 

Then don't let the car get away. I wouldn't let a thousand or two stop me. If you get steal some savings, that would be the best thing. Even if you have to borrow a little, if your sure you can pay it off, just deal for a good interest rate

 

I'm not arguing that in these economic times, but in more credit-friendly days I bought several motorcycles by transfering the loan balance from one zero interest credit card offer to another and never paid anything but the principle (and a little transfering fees).

 

Man, this is a fast paced forum! I think my posts are lost in the mix as soon as I make them.

I was saying a few posts ago,Mazomma, that in NE Ohio a car I'm looking for that's located close and is affordable doesn't happen very often. I have lost out on a few cars that would have worked for me but for some ready cash over and above what I've saved up.


This isn't like Southern California where these cars are at a surplus.

 

Home equity line of credit...BAD idea...ask all the people selling off there Hot Rods and High dollar dune buggies.


Another one is selling your first born...wife gets pissed

 

From personal experience i'll tell you, DO NOT TAKE A LOAN OUT FOR A COMPLETE PROJECT!

I did it as kind of a birthday present for myself about 5 years ago. I bought a '65 GTO that needed floor pans, trunk pans, motor, tranny, wiring interior, paint and body, and all the little nit pick things that add up quick.

Two months after purchasing the car i bought a house, a year later i got married, about 7months after that i had a kid. During all of this chaos I lost interest in muscle cars completely. (hot rods are more fun, with way less rules) So in the end i had partial car sitting in my garage that i no longer wanted, but could not sell for anything close to what i had invested. And thats not counting interest on the loan.

Dont do it! Save your cash, buy it piece be piece. A bank will not give you a car loan on none working classic cars. Personal loans have some of the highest interest rates you can get.

 

I feel that if I don't have the funds I don't go in debt for it. I hate credit cards. Seen what they've done to my family and friends, America and all others in between. People these days have to have it now and that my friends has really screwed up our economy. You know I bought my truck for 1500 bucks in '96. I was working two jobs and saving up to buy something affordable and reliable. I knew that one day it would become my dream truck but it had to serve double duty by the same thought. I bought my truck from my uncle who wanted to buy a car. I continued to work two jobs and save and save. It seems sort of stupid now but for me it was about being able to do something with my truck. Now almost fifteen years later I've still yet to build my truck but I'm getting closer. I've been saving up for suspension and engine peices for awhile now. I have a house payment and other bills. I refuse to bow down to the credit card games. I don't care if you use it and pay it off the next day it just seems stupid to spend money you don't have now. I think waiting it out has worked for you to get your bills down so waiting alittle longer won't hurt either. Anything worth waiting for is worth waiting. If you still want it in six months and you have the money then by all means do so. Just my thoughts. Good luck.

 

best way is whatever way is lowest fee/interest, hard for anyone to know what that is without knowing your credit and equity status, if your going over 5% or will take longer than a year to pay back don't bother.

a good buy is a good investment, a bad buy isn't, no matter where you are deals will come up if your always looking. great deals are worth jumping on, OK deals aren't...

 

Honestly, if you have to BORROW money for your hobby - you need to rethink your hobby selection. Out at the airport, there's all kinds of guys that are whining now that the economy has taken a downturn...don't know HOW they're going to pay for maintenance on their turboprop twin pressurized toy, not to mention hangar leases, etc, etc. Same goes for cars - if you have to use money you don't have....that isn't a very good way to indulge. Look at all the cars and car stuff for sale as people find they need to buy groceries and pay for utilities.

sorry, but I was a banker for way too long, I guess.

dj

 

A banker lecturing me about borrowing money responsibly!? Aren't you the guys who got us into this mess? A few years ago I had bankers calling me literally every night trying to get me to re finance my mortgage. Promising me wheelbarrows full of cheap money (I didn't fall for it). One even said I should re-finance with him because his wife was dying. Possibly true, but a sleezy sales technique.

 

I pattern myself after the "Thrifty Tom Cat".every night I put a little in the Kitty...

 

if you have to have it, take out a signature loan and pay it back in 6 months.

 

IF ... it is a running, driving vehicle and a GOOD DEAL ...

DO IT ...

Only YOU ( and your wife ) really know how well off you are money wise. If you think you can make it ... go for it.

I would NOT borrow for a long term project now ( like I did 30 plus years ago for my Deuce roadster ) ... but I KNEW the roadster was going to be mine for a long, long time. Over 30 years now and no plans to sell it ever. I believe FAB 32 borrowed some $$$ to buy his 32 5W coupe over 30 years ago. He still has it also. SOME cars are worth the risk !!

 

What he said! Good point.

 

Life is a lot sweeter when not burdened by debt. I would never go into debt for a toy. If you lose out on this deal, another will come along. You said you missed out on a couple already, this means they do happen on a somewhat regular basis. I currently own 6 vehicles (only 2 of them are old) and owe nothing on them. I am not rich, but I do try to make wise decisions with my money, primarily not going into debt.

 

Monday there were 220 employees at the Bayer plant near my home who were saying the same thing. Yesterday, the Plant Manager notified them that they are closing the plant and they will be out of a job very soon (the employees had no clue it was coming!). The exact same thing happened at the local Dow Chemical Technical Center two years ago. A job today does not necessarily mean a job tomorrow. Never pay interest.....collect interest! Just my .02

Jim