Location: NYS
Posts: 2,511
My VIN: 4519
Last edited by Rich_NYS; 11-12-2019 at 08:57 AM.
Location: Northern NJ
Posts: 8,570
My VIN: 10757 1st place Concourse 1998
I have had the unfortunate pleasure of meeting more than a couple of owners who borrowed to get the car and could not afford it. It happens more often than you think. Their only way out is to sell the car at a loss. Sometimes the obvious must be spelled out.
David Teitelbaum
I got a good amount of crap for financing an old car, but this is exactly why I was comfortable with it. The amount of interest I ended up paying was less than the average increase in delorean values over the life of the loan. I could never justify a loan on a depreciating asset such as a new or slightly used car.
Speaking of spelling out the obvious, a person can just as easily get in financial hot water by draining their savings to buy a DeLorean in cash. Given the upward trajectory of DeLorean values, it seems like a lesser risk to retain a savings nest egg by financing the majority of a DeLorean purchase. No matter which way you approach it, buying a 40 year old toy involves plenty of risk, and some folks will make a losing gamble. To each their own.
Louie Golden
Location: NYS
Posts: 2,511
My VIN: 4519
I like the way you think! Meanwhile, people buy new cars all the time and follow the advice that financing a new car is ok, but financing a DeLorean isn't....lmao. I avoid new cars as a general rule due to where I live and length of my commute.
New 2013 Altima: ~$22.5K
Value of a 2013 Altima in 2019: ~$9K
Used 1981 DeLorean in 2013: ~$9K - $25K
Value of 1981 DeLorean in 2019: ~$15K - $35K+
If someone gets in over their head due to repair costs, it's not too hard to sell & recover as long as they didn't overpay too much on the purchase.
Location: NYS
Posts: 2,511
My VIN: 4519
Location: NYS
Posts: 2,511
My VIN: 4519
I mean you can stretch yourself on literally any large purchase.
Before I bought the DeLorean, I really wanted a Testarossa. Doubt I could have gotten financing, but in about 2 years they went from $70k cars to $120k and now some are $200k. They went from reasonably affordable Ferraris to increasing in value per year more than I made in a year. Not everything will be that extreme, but this was definitely a car I wanted to save up for over several years that is now well beyond my affordability.
Location: Northern NJ
Posts: 8,570
My VIN: 10757 1st place Concourse 1998
If you are buying a Delorean with the idea you will "make money" realize it is like stocks. Unless you sell it (hopefully at more than you paid for it) you do not capture your profit unless and until you sell it. Until it is sold it is just an asset but it still has it's expenses. If you figure what you will spend over the time you own it you must include acquisition costs, insurance, repairs, registration, storage, and gas. Is it really appreciating enough to cover all of it? Then there is the fact that you do get some use out of it. What is that worth? For the majority of owners it is not a money making proposition. It is done for the enjoyment. The thing to understand is "Can you afford it"? I stand by my statement that financing (borrowing) is a great way of saving time but it is not the best way to get into ownership of an old, used car that is not a necessity. Also remember that you only have so much borrowing capacity even if you can borrow cheaply. If you are saving up for a house, this is that much less that you will have available. If you are borrowing to buy an old car, fix it up and sell it quick to turn a profit, then that is a good strategy. Risky but a good strategy. Heck, look at what happened to JZD. He borrowed money from the British Government. Look how well that turned out. Sometimes you roll the dice and you lose.
David Teitelbaum