Did you finance your Delorean?

[Hill Valley PD]

Financing a new car makes little sense as they depreciate right away and continue to do so over time. However, most people do not have 30-40K laying around to plunk down for a vehicle, so the reality is most people finance them. Classic car financing actually makes more sense because they tend to appreciate over time and can eliminate the interest paid on the loan if the rate is not too high. The DeLorean is appreciating in value, but you also have to factor in running costs, which are higher than your standard classic car like a 1st generation Mustang. I made money on my last classic car, 1970 Mustang Mach 1, approximately 3.5K over 4 years of ownership including running costs. I have put more than that into my DeLorean in the last year. As David T stated, cars are also about enjoyment, and that has to be worth something. I know I cannot sell my car for what I have in it at this point, but my enjoyment is worth something. It depends how much it is worth to you

[mr_maxime]

Considering that a collector car is usually not a daily driver, running costs aren't really necessities. Another thing to look at is that a used daily driver car probably has way more mileage and wear and tear. Sometimes the cost of maintaining those exceeds the value of the car itself.

While no one likes large bills, spending $2k to keep a ~$35k delorean on the road makes way more sense than $2k to keep a $1k honda on the road. You're also way less likely to lose money on a classic car if you ever need to sell it. I've definitely spend way more on my Mazda in one year than I'll be able to sell it for.

[David T]

If you don't put any miles on a car you still have a bunch of "running costs", insurance being the highest. Figuring a cost per mile is meaningless if you don't put any mileage on (or very low miles). You have to figure in the "cost per smile". In fact, the lower the mileage you put on, the higher your repair/maintenance costs will be when you finally do start using the car.

[mr_maxime]

Insurance may be the highest but that's like $120/year. Not exactly a bank breaker.

It is by FAR more expensive to regularly drive a delorean than letting it sit. That $2k maintenance bill wasn't a fictional number. That's a legit shop cost from when I drove the car 100 miles a day to and from work.

[Giamanut]

I am looking at options for financing classic cars. I have good credit and could get a new car loan easily, I have just noticed that most lenders won't lend for older vehicles. I have some money saved towards purchasing a D, I am just getting antsy Any advice to this novice would be greatly appreciated!

thanks!

Zach

Funny I have been financing all my cars through PSECU so when I found my D I Called them they said send pictures had the cash in less than a week! PA. State Educators Credit Union = PSECU. 2.49%

[Giamanut]

what is the name of the lender? Is it a private party sale?

A rate that low makes it a no-brainer. My score is usually 800+, so i've been fortunate to get low rates when/where available but not seeing good rates [for a vintage car] lately.

psecu

[David T]

My insurance costs around $350 per year. Very dependent on what State you live in and your "Agreed Value". I have found that over time your maintenance costs will go down if you have been diligent with your maintenance. Eventually you fix or replace all of the stuff that breaks. Then there are the expensive years where you might replace tires or some other high cost item. To really understand those costs they need to be amortized over their life, not just any one year. Of course the more you use the car the sooner you wear things out. For example the tires again. I don't wear them out, they just get old.

[SamHill]

Insurance may be the highest but that's like $120/year. Not exactly a bank breaker.

It is by FAR more expensive to regularly drive a delorean than letting it sit. That $2k maintenance bill wasn't a fictional number. That's a legit shop cost from when I drove the car 100 miles a day to and from work.

What is consistently breaking every year that costs $2K?

[mr_maxime]

What is consistently breaking every year that costs $2K?

That was the bill for the exhaust gaskets and front crankshaft seal. That was the single biggest bill so that's the one I remember. There were a lot of things I could have let sit for longer without fixing had I not been constantly driving the car.

During about a year and half of daily driving the car I had to replace radiator, cooling fans, fuel pump (2nd time), exhaust gaskets, front crankshaft seal, tires (plus alignment), tie rod end boots, angle drive, radiator hoses, water pump while I was there, and multiple alternator belts. That's what I remember off the top of my head.

My biggest expense right now not driving it is renting a garage which I'd do regardless

[SamHill]

That was the bill for the exhaust gaskets and front crankshaft seal. That was the single biggest bill so that's the one I remember. There were a lot of things I could have let sit for longer without fixing had I not been constantly driving the car.

During about a year and half of daily driving the car I had to replace radiator, cooling fans, fuel pump (2nd time), exhaust gaskets, front crankshaft seal, tires (plus alignment), tie rod end boots, angle drive, radiator hoses, water pump while I was there, and multiple alternator belts. That's what I remember off the top of my head.

My biggest expense right now not driving it is renting a garage which I'd do regardless

That litany is about the first several years with my car after it had been sitting nonoperational for a long time.... but I make a distinction between that fraught period and regular maintenance. Either things tend to smooth out or it's a really good lie I tell myself... I found that things weren't so traumatic after that period.