Car Restoration Financing?

[wiedemab]

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.

[mdprovee]

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.

[214Chevy]

Originally Posted by mdprovee

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.

True spoken words. If anything, at most, borrow and buy a completely finished car. But do not borrow to build a car. 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.

[Flash68]

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

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.

[Tony_SS]

Originally Posted by Flash68

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

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!

[Flash68]

Originally Posted by Tony_SS

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 encouraging borrowing.

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.

The official smiley for this thread

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

[Tony_SS]

Originally Posted by Flash68

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

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

[Sparks67]

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

[califconstruct]

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!.

[waynieZ]

Originally Posted by wiedemab

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.

X2 I agree cash when available.