Loans for your projects???

[ErikLS2]

Borrow money for things that go up in value, pay cash for things that go down in value.

[214Chevy]

Originally Posted by Al Moreno

than you'll spend your time doing this with your wife ... and after a few years this is what you'll look like

Then after all of that with the wife, she'll do this to you >> And you'll be looking like this or this or this after she does this to you all because you shouldn't have done this to buy this in order to have fun doing this on the weekends.

[Bucketlist2012]

Now you need to ...Do not be a ...

You are only 29...And if you think a certain amount will finish the project ? Oh man, it is always more..

These are toys.... They need to be paid for as you go IMO...

I mean if it took you 6 years you would be ONLY 35....That is still young...

So go out and and think about it ..

Houses are not ATM's and These Cars are not appreciating assets with all the costs involved..

[BPDRacing]

Look at it this way, if you could afford it you would not need the loan.

Take the money you would be using for payments on the loan and create a car savings account. As you save enough money for certain items buy them and keep going.

It takes discipline, patience and a budget. But in the end it yours free and clear.

[sik68]

Turbostang, I am also 29 with a project car I've also owned for over a decade. Some of my gearhead friends growing up decided put their lives on hold to be able to finish their cars...I talk with them now and, yeah their cars are cool and all, but I don't envy their financial positions or general position in life one bit.

Pragmatically, the size of the loan you're talking about is not too bad...basically an average new car loan. So maybe financially it feels "normal" to take out this loan. But the payments will be around far longer than the warm and fuzzy feelings of getting shiny new parts in the mail. Happiness is freedom, and a lifestyle loan like this takes away your financial freedom.

Find another way to "finance" your build... set aside money each month, start a revenue generating side project, take a class or two that will improve your upward mobility/pay in the long run.

[69znc]

There are a lot of smart people telling you no, but your response still seemed to want to justify it.

Some facts: (reinforcing what others have said)
- your financial position is not guaranteed
- the car is pure discretionary spend, health expenses, retirement, college for kids... are not
- is will lose value
- whether you like it or not you are of the instant gratification generation ( see my post to Al on his sons build - many hours and one small step at a time
- at 29 you are invincible! I know, and most of us know, we were all that age and anything was possible

Anything is possible. Just make sure to keep the main thing the main thing and a loan for the car is not that.

One mans opinion

Cheers
Peter

Yes I waited for 30 years to build mine and I could have "afforded" it before but other things come up.

[67turbostang]

for all the replies and input. I really appreciate all your advice and got a lot of good laughs with the smilies use

I'm not just a young guy that wants instant gratification. I can see how some of you guys might think that with my previous posts. Also being that you guys don't know me it makes sense. Trust me I probably would have thought the same thing

I'm actually a very responsible person believe it or not. I got my first job at the age of 14 and have been working hard ever since. I have always bought my cars in cash(used) or given more then half down(new). The couple of times that I have bough new cars I paid the loans off before half of the term length. I bought my house at the age of 24 and have refinanced(for lower interest rates) my mortgage 2 times since then. I was able to lock in a 30 year fixed mortgage interest rate at 3.25% I have always put my responsibilities before fun. That's the reason why I even considered taking out a loan for my project. I'm at a point in my life where I have a really good job and making good money. I guess I just wanted to do something for myself. Give myself a gift for all the hard work I have put in over the years.

I will definitely consider all of the input and advice from you guys before I make a decision. I will also do a little more research. Again, I really do appreciate you guys taking the time to add your two cents. Keep the input coming!!

[Tony_SS]

Do you have car payment now? Are you sitting on any other debt, 2nd mortgage, credit cards, student loans? If not, then I would say go for it. File for an LLC and write it off. Use a credit union and get a good rate. You are young, single no kids, debt free (besides the house) and fiscally responsible, I don't see a problem with it all.

Outline a plan, stick to the budget and just make sure you aren't making payments on a car that doesnt run when the money runs out. And start a build thread!

[69znc]

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!

[Flash68]

Originally Posted by ErikLS2

Borrow money for things that go up in value, pay cash for things that go down in value.

Roger that.