Loans for your projects???

[67turbostang]

After years of working on my car and dealing with setbacks(financial and time) I decided that I am getting a loan to finish my build or at least get it closer to being complete. I'm at a point where I can afford it, so it seems logical.

How many of you fellow members have taken out loans for projects? I would like to here your input

[AMSOILGUY]

Most people are going to say its a bad idea! I've done it before mostly for key items though not a whole build. I just work at paying it off much faster then the full term to help not pay as much interest. I have an account with Navy Federal and they pay 250 dollars to refinance an auto loan. So I use a local bank or lendor and then before even making a payment I switch it to Navy Federal and always get a better rate and they pay me to take the note.
For instance I needed 3 grand so I called my local bank got a loan on a vehicle I owned and in no time at all I had the money in my account with an interest rate that was not great. So then I refinanced it with Navy federal they pay me 250 bucks and give me a good rate on a used car 2.59 so its like $2.50 day but I pay it off in 3 months and the interest was equal to the 250 bucks I recieved so basically its a wash for me. You must be careful though because if you are barrowing alot it won't happen like that or if you don't pay it off early.

[MattO]

Don't.

[Streetking]

Originally Posted by MattO

Don't.

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.

[randy]

Only way i would do it is if you thought it would take you 10k to finish your car. You have the 10k in the bank but dont want to take that lump some out. Borrow the money only if the interest rate is low and at most your loan only costing you under 1k over the mature date. remember at anytime you can pay it off right away without strapping you for cash.

[patriot68]

pay as you go

[DOOM]

Originally Posted by Streetking

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.

[GregWeld]

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.