Lateral-g Forums - Loans for your projects???

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Quote:

Originally Posted by Streetking (Post 479000)

I agree. It's too easy to get a loan and build your car. Wait until you can save enough up or buy parts as you can afford.

SW hit it right on the head!! I put money away for ten years.

I always love it when guys say "I can afford it"...... and then they're making payments. If you're making payments -- then NO, YOU CAN'T AFFORD IT.

Go read the INVESTING 102 thread.... follow along... THEN maybe you could afford it before you're 40.... which is plenty young.

What he said.^^^^

I've seen it too many times! It will feel good when your project is done and know that you don't owe anyone. Pay cash, alway's! Remember, it's just a hobby!

To his point, people borrow to buy new cars all the time. Nothing drops in value faster. But it's not financial disaster, just paying for a luxury.

If he wants to finance a project, and pay for some fun, instead of having a new car loan, I don't see the difference. Assuming he can stick to the plan and be successful with his build, it will hold or loose less value than any new car purchase.

My first real hotrod project said "powered by credit" on the decklid. Thats how I learned not to do that anymore. The happiness is in the achieving, not the having.
Enjoy the journey.

Quote:

Originally Posted by bret (Post 480017)

My first real hotrod project said "powered by credit" on the decklid. Thats how I learned not to do that anymore. The happiness is in the achieving, not the having.
Enjoy the journey.

Isn't that the truth Bret!

Half the fun is the "hunting and the gathering" part of these builds.

it took me ten years to get mine done and i would have done it the same way if i could go back.
FIGHT THE McDONALDS MENTALITY. pay cash

Quote:

Originally Posted by GregWeld (Post 479718)

I know I can't afford to finish the the car right now. That is why I started this thread to begin with. I know that there is a lot of wise/experienced people on here and wanted some input.

Thanks for posting the INVESTING 102 thread. looks like I have some reading material for the next few days/weeks haha

Quote:

Originally Posted by 69znc (Post 479510)

I will push back and drop it. If everything Tony says is true then go for it. I could agree.

But the need to do it now was my reference to instant gratification. Yes going into debt for something you do not "need" id this the definition of instant gratification. It was not at all a statement of work ethic. They are very different things. You seem to have a great work ethic. You have a good job, again that is now, do you have all the savings done for a change in that income due to health or economic events. Can you make it a year and not worry with all the existing debt and health care costs? I have no idea. If you are married and the wife gets pregnant it changes things...

It is great you paid off two new car loans in half the time but why did you need two new cars already only being 29? You just wanted them or a requirement for work?

Getting credit is easy. Especially if you are young and making a good income. Saving and paying in cash is much harder emotionally when you know in your heart "if everything stays the same" you can easily cover the debt.

I have been fortunate enough to work at the better consulting organizations in the world for 25+ years and we are always the largest recruiters on campus. Fortunate to hire and work with some of the best and the brightest from the best schools for all these years. People who will be successful so I know the thinking and logic. I still stand by my experience and advise them accordingly. I have instilled the same in my two 20 something daughters.

Best of luck with your decision!

Thank you. I appreciate you taking the time out of your day to give a stranger some advice.

Now, time to answer some of your questions.

I do have savings some savings put away. I am single, no wife.

I bought my first new car at the age of 18. It was a 5 year loan and I paid it off a little after 2 years. I sold it to buy a used truck and my mustang(project car). I put the rest of the money in savings. I purchased my second new car(06 Honda Civic)at the age of 22. I wanted something reliable with good gas mileage. I paid the loan off in 2 years and sold it soon after. I used the money to buy a used Honda Civic and put the rest toward a student loan.

Thanks again for all your input and advise!