Car Restoration Financing?
 

Does anyone know of a company that will finance car restorations? I've heard of one, but I'm looking to see if there are others / if anyone has any experience doing it.

That's like financing a drug habit! :G-Dub:

yeah, that would be a bad thing. its never ending. You maybe able to find a shop like mine that offers financing and a credit card.

I always recommend working with in your budget. If you can't afford it yet then wait.

I have very strict and simple rule - - CASH only when it comes to hobbies.


You will likely have to put up collateral other than your project car to get anyone to loan any money for such work. Even at that, I don't think it's a good idea.

Speaking from experience..do not finance a restoration. Once the car is done, or you think it is done, you have to pay on it for years. Then a couple of years, when you want to change or improve it, you are still paying a bill are trying to come up with additional monies.

Pay cash and save.

I knew the replies to this would be ..... interesting. :D

If there was a bank (or individual) risk tolerant enough to lend for this, the interest rate/fees would be (should be) astronomical enough to make you say no thanks.

Free market interest rates to reflect risk would be ideal, but since the rates are fixed at the top, they don't reflect reality. Now they're set artificially low to encouraging borrowing. What could go wrong? lol

If someone was to keep their cash liquid and borrow money to finance a resto at 1.9%, I can't say I'd blame them though.

I'm glad Lat-G has its own Ben Bernanke smiley. LoL!
:G-Dub:

Agreed on a better route to take if it's available. Not that many of us would condone it. :)

You could always wait for Dave (Flash68) to go a different direction on his build, get a new engine and chassis, and pick it up from him at a screaming deal!.. and not have to finance much!. :unibrow:

I'm not one to tell someone they shouldn't build a car. :D :lol:

I have looked into financing in the past from a local credit union at work, but the rates were rather high. So, I just saved up the money and paid cash. Even if you pay for via Credit Card, then pay off each month. I had 2 friends that couldn't wait, so they end up filing bankruptcy.

Jeff

X2 I agree cash when available.

Oh man you guys are killing me....

Especially the Ben Bernanke comment :G-Dub:

I would only pay cash for my habit...I am only part of the way through mine and life has diverted the money elsewhere...Life being my Wife, haha:confused59:

I would never finance anything other than a Home, and FOR SURE Never a hobby like a Car Build....

Not even tempting..

Heed the words of those who have thrown money like confetti....

I have a High Interest in finishing my Car, and a Low Interest in borrowing to finish it...

hey now Art that is gloating! :poke: :lol:

Good point. :D

Wise words again from this man. :thumbsup:

[QUOTE=Flash68



Wise words again from this man. :thumbsup:[/QUOTE]

Thanks Dave:thumbsup:

True spoken words. If anything, at most, borrow and buy a completely finished car. But do not borrow to build a car. :smiley_smack: :smiley_smack: I can assure you, if you borrowed to build a car, you blow thru the budget rather with redo's, illegitimate shops, changing your mind on the direction of the build, etc just to name a few.

Looks like someone new joined this site, got overwhelmed with all the great projects on here and forgot about all common sense when building a car and forgot to realize that his eyes were bigger than his wallet:G-Dub:

Financing a build is a sure-fire way to go broke... or even worse

Someone wise once told me that you should pay for toys with cash. So, I am in the majority here. I have the means to move faster, but I choose to plan and buy as I can after tithe, paying bills, savings plan, life/disability insurance, family fun expenses, etc.

This site has a way of making you spend more money...:G-Dub: :thankyou:

But it should be disposable income...Because it goes fast and never far enough..

all good advice . Dmaxwell did you get your answer ? just a thought but have you found a pay as you go builder ?? thats why some of these projects take a while. I would not pay any shop all up front.:idea:

AMEN.. You only pay for the parts needed for each phase. And then you pay for the Labor AFTER the labor is done..:thumbsup:

Hey what kind of car are you building. Maybe I'll grab it for $0.50 on the dollar when you realize you can't afford it and put it up for sale. :lmao:

Financing is for buying a home or machinery needed to run a business. Anything on this board should only be bought with cash in hand.

Let me see.....

It will be worth half what you have in it.

You have to insure it.

It burns gas.

You need to maintain it.

And that's if you own it free and clear.

Start here... https://lateral-g.net/forums/showthread.php4?t=34700

UH NO you will have to pay as you go on labor too I don't think ANY shop is going to foot the bill on a complete build. they don't want your car they just want to build it.

This is a bit off the topic, but a buddy and I were talking.... he is firmly against any debt whatsoever... my argument was that, if rates are so crazy low, wouldnt it be wise to borrow money at 1.9%, and keep your cash liquid? He thought not. I disagreed: The cost of the loan is worth the price, if I can keep my cash, and even make money on what I have, and use the bank's 'cheap' money. I'm all about avoiding debt, but living by that absolute isnt always the wisest choice IMO. In this case though, it's a wise one. lol

Nope.

This. I didn't say I needed to finance a build, I was curious if such a service existed and, if it did, how cheap the money was. If I can barrow at a low enough rate, why would I tie up $100k+ in liquid capital if I have an alternative?

I would make a call to the classic car insurance people ??

otherwise its probably going to be an unsecured loan from a bank
and not the lowest interest rate probably around 6.5% for excellent credit

a purchase money second on your home could be an option for a low interest rate.

what kind of car is it that could change things ???

I doubt that is what he meant.

Yes. Some people avoid debt at all costs, and it is not always the most strategic decision financially, but it makes them happy.

More info in your first post on this forum would have been helpful. :rolleyes:

Oh I meant to say that you pay the Labor as you go...Each phase gets paid AFTER it is done...But you are paying as you have things completed..:thumbsup:

[QUOTE=Flash68;461053]



Yes. Some people avoid debt at all costs, and it is not always the most strategic decision financially, but it makes them happy.

Some debt is OK...I would always keep my Home Loan even though I could pay it off...I would rather Invest the Money and get double the return.

But only on a Home loan. That Debt sounds fine to me,especially at mid 3%..

Such as?

Such as a sentence or two explaining your reasoning behind it. It would have prevented much of the 2 pages of responses telling you not to do it.

Not a case where less is more. More is more.

Oh, and welcome to the best forum on the internet.

Not being mean, but some people have to learn from experience. DMaxwell, go ahead and procure a loan for whatever amount you feel you need. Let's say $100k for a decent car with all the bells and whistles. While building the car, see if you can stick to that budget, hope you can see the project all the way thru til the end. If so, you now owe the back, with interest, roughly $120k. You get tired of the car and want to sell it. The best offer you've gotten was for $70k because you built the car for you and the market is still bad. Now you still owe the bank $50k. All we are saying is it isn't a wise choice to borrow for a build. Do whatever you feel is right and makes you happy. Good luck.:thumbsup:

Even if you do finance, I would search for a completed project closer to your liking. It sort of like paying top dollar to buy new car with 0 miles, and saving thousands buying the same car with 10-20,000 miles on it.

And one more thing. Ben Benanke for president. Print money bitchaz!
:G-Dub:

Not sure how everyone on here thinks its such a bad idea, its like doing work at your house and everyone thinks thats such a great idea...... If you really want a car and can afford to do the payments on it this will fast track that. We have thought about doing something like this for many years with a flooring company. Just have to work out all the details so everyone is on the same page and you understand what you are getting yoursefl into. :thumbsup:

Chris, I wouldn't compare a house, which is a necessity and gains equity, to a classic car, which is a luxury and can lose equity. Now, I know the housing market is not good now, but a house is still an equity item. Like some one else mentioned, unless you have some rare Duesenberg, the very first James Bond Jaguar or something like that, the muscle car is not the same thing. 20 years from now, housing will still be a necessity. In those same 20 years, we can only hope pro-touring is still as big as it is today. If not, you'll still be paying that lone you borrowed. Just my $.02. There's no right or wrong answer.