Did you finance your Delorean?

[aotmfilms]

Not really applicable here, but typically when you hear of people removing all their "mods" when they get rid of a car, it's because they leased it.

IMO modifying a car that you are essentially renting is beyond idiotic, but it happens all the time.

Actually it will depend on what your loan documents say. No one can give you advice about this without reading them to see what the deal is. You may need their permission to modify the car.

@ DMCMW Dave, Yeah, I don't understand WHY people would do that, but never have seen an example of it, so I'll take your word for it. I would be curious as to why people would do that, that would be like upgrading an apartment that you are renting.

@ David T. On another note: In my case I'd probably keep it stock until I paid it off. My thinking is that I would funnel as much money in keeping the car running as possible with the only exception is upgrading stuff that would ensure the safety of the car, its occupants or others on the road.

Let me explain: "upgrading" would be a relative term. While reading The Illustrated Buyers guide, it mentions that there are superior after market parts at the full service vendors for stuff such as a gas filler cap, door seals, convex mirrors and led lights etc, but are those really "upgrades"?? at all when, had John Delorean kept the company alive, they would be on DMC-60's today (give the DMC-12 was supposed to cost 12k back in the day lol, 60k today), so I'd consider them standard equipment. (I understand that he would have also upgraded the PRV engine but I think that would be extreme for me to do that until paid off). Maybe the bank would cut you a little break on those necessary upgrades?? When they repo'd the car? (take money off of the loan, probably not but wouldn't hurt to ask).

[Andrew]

The only car that I ever partially financed was my first Delorean back in 1998. From a financial standpoint, financing a classic car such as a Delorean is much different than financing a new car. The biggest factor in new car financing and also the largest drawback is depreciation. Generally speaking a new car depreciates like a stone...roughly 75% within the first 6 years or so. With a newer car mileage and maintenance are a factor, but the single biggest aspect is simply time. Thus, if somebody finances a new car for 5 or 6 years with little or nothing down, there is often a period of time in the loan where the borrower owes more than the car is worth. This is otherwise known as negative equity or "being upside down" in the loan. Hence, a new car purchaser usually pays principle plus interest on a negative asset. From a strictly fiscal standpoint, it is not a very wise decision.

In contrast to a new car, a DeLorean has been fully depreciated for 20+ years. Thus, absent damage or a catastrophic mechanical failure, with routine use and maintenance a DeLorean will not go down in value simply by the passage of time. To the contrary, a DeLorean that would have sold for $15,000.00 in 2000 would probably sell for roughly $25,000.00 today all other things being equal.

Cars in an of themselves are not usually good investments, and the current surge in DeLorean prices may be a bubble. But if forced between financing a classic and financing a new car, I would personally finance the classic every time! Of course my newest car is a 1985 :-)

Andrew

[thomasuncles]

If you are a USAA Federal Credit Union member I always recommend a USAA auto loan. I got a 3 year loan at 1.98% last year on my D and they are very helpful. They also offered me a 5 or 7 year loan under 4%. I checked a lot of other places but they were the best and did not care how old the car was. Even the car insurance is cheap through USAA, since mine is a daily driver and I require standard auto insurance.

[aotmfilms]

If you are a USAA Federal Credit Union member I always recommend a USAA auto loan. I got a 3 year loan at 1.98% last year on my D and they are very helpful. They also offered me a 5 or 7 year loan under 4%. I checked a lot of other places but they were the best and did not care how old the car was. Even the car insurance is cheap through USAA, since mine is a daily driver and I require standard auto insurance.

Yes. You got a really good rate then with excellent credit 720 or better. Mine isn't that stellar but is at 5 percent for 6 years. For 3 years USAA wanted 2.9 percent for people with excellent credit, for people like me with just good credit it was 3.9%. Car insurance for the D for me is around 85 bucks per month for insurance. 170 for both cars.

They have been on me asking me "When are you going to pick up the check?"

Me: "When I find a Delorean"

USAA: (Dejected complements me on the Delorean that I haven't bought yet), promises not to bother me but then calls me the next day.
So the moral of this story is to help this poor sapp (Me) by finding one so my bank, that is begging me to take money for a 34 year old finicky car, will quit bothering me lol!

[dodint]

Do any of the USAA folks remember what they stated the collateral value was? I know it's subject to change, just trying to get a ballpark. I'm not starting a search until April but I'm getting my ducks in a row.

I'll have about $10K cash on hand. Hoping the CV is over $25K so I can have money left over for fixes and upgrades as I figure I'll buy in the $28-32K arena.

[DMCMW Dave]

I'll have about $10K cash on hand. Hoping the CV is over $25K so I can have money left over for fixes and upgrades as I figure I'll buy in the $28-32K arena.

We sold one to a USAA member (financed) in that price range a while ago, easiest finance transaction I've ever seen. The only bank I've run into that lets the borrower mail in the title himself. I think at the time the USAA person said "we trust our members" and the buyer told me "well, they certainly know where to find me" (active duty).

[dodint]

Yeah, I'm a vet, but they have my home, motorcycle, insurance, retirement accounts, credit cards, wife....I can't hide.

Thanks for the input. I'll end up calling them in the spring for sure, they're pretty strict about the CV limit on older than late-model cars so I'll need to get a solid number from them anyway.

[mr_maxime]

I see you're in Wisconsin. I financed mine with Landmark credit union.

[Morpheus]

I financed my D with Partners FCU, which is the Disney credit union. I have been a member for a very long time, and financed several cars with them. Since I have a solid relationship with them, they had no problem financing my DeLorean with decent terms.

My view is this: You only live once. Most people finance new cars nowadays, so why is it so much worse to finance a DeLorean? The only 2 differences i see is that the D won't depreciate like a new car will, and a new car won't need as much extra $$ for repairs and maintenance. So long as that extra $$ is budgeted, I don't see a problem with financing.

[Johnny-T]

I used DCU (Digital Federal Credit Union) to help me buy VIN 967 last month. But I only financed a little over half of the purchase price. The rest I saved for. I got a super low intrest rate and low monthly payments. Like others have mentioned, I would always do as much reaserch as possible to make sure you are getting the best deal and also take in to account you will probably have to do some work to the car. Ive had my Delorean for just over a month now and its my daily driver here in Vegas. It runs perfectly with the exception of a window switch that went out driving it from WA to NV. But one of the reasons I looked for the best lender was because I wanted to make sure my monthly payments wouldnt be so high as to force me to not get any work done when it needs it. You have to find a good balance that works for your specific finances.