Did you finance your Delorean?

[about2livethedream]

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

[jawn101]

Please don't take what I'm about to say in the wrong way, but if you only have "some" money saved towards it, then you probably can't afford the car. This is not a criticism of your financial situation or you as a person, but these cars take some serious cash to keep running.

Think of it this way: if it is going to come down to deciding between making payments or keeping it on the road (even if you get a great runner, big expensive things will crop up), do you really want to be stuck making monthly payments on a car that's now crippled in the garage?

So no, I did not finance my car. I saved my entire adult life for it, did TONS of research and went into the purchase with my eyes (and wallet) open. I bought a beautiful, well-maintained, all original and frequently driven example that was about as good as anyone could expect, and then proceeded to dump many thousands into it in the first two years anyway.

Read this thread... it may change your life.
http://dmctalk.org/showthread.php?371-Please-read-before-posting-%93I-want-a-cheap-DeLorean%94-or-%93Project-Car-Wanted%94-threads

Ultimately it is not anyone's place but your own to decide what your financial situation is and what you can and cannot do, but we've seen many people with good intentions settle for a cheaper car because they rushed into it without the proper funds. Those cars almost always get flipped once the new owner realizes just what they've gotten themselves into. We hate to see that happen to the cars AND the owners.

Keep the dream alive. There will still be plenty of cars when you're ready. And if you decide you're ready now, then welcome aboard. Show us any car you're considering first, we can help you make an informed decision.

[TheSmokingMan]

When I was 19, I took out a loan against my daily driver (which was paid off) to purchase the DeLorean. Paid it off again in less than 2 years. Had I to do it over again, I would just wait until I had saved up enough money to buy a REALLY nice car instead of the fixer upper I got. I was young and impatient and really should have listened to the advice of the more experienced people around me.

If purchasing the car leaves you tapped out, you won't have any money left over for maintenance (which these cars demand). It's a bad cycle that will end in you being in the poor house and stuck with a car that is unreliable and possibly undrivable.

[Dangermouse]

The big question is "Will the D be your daily driver?"

With a few notable exceptions, the general consensus is that it shouldn't be, no matter how it is paid for.

[DMC81]

Please don't take what I'm about to say in the wrong way, but if you only have "some" money saved towards it, then you probably can't afford the car. This is not a criticism of your financial situation or you as a person, but these cars take some serious cash to keep running.

Think of it this way: if it is going to come down to deciding between making payments or keeping it on the road (even if you get a great runner, big expensive things will crop up), do you really want to be stuck making monthly payments on a car that's now crippled in the garage?

So no, I did not finance my car. I saved my entire adult life for it, did TONS of research and went into the purchase with my eyes (and wallet) open. I bought a beautiful, well-maintained, all original and frequently driven example that was about as good as anyone could expect, and then proceeded to dump many thousands into it in the first two years anyway.

Read this thread... it may change your life.
http://dmctalk.org/showthread.php?371-Please-read-before-posting-%93I-want-a-cheap-DeLorean%94-or-%93Project-Car-Wanted%94-threads

Ultimately it is not anyone's place but your own to decide what your financial situation is and what you can and cannot do, but we've seen many people with good intentions settle for a cheaper car because they rushed into it without the proper funds. Those cars almost always get flipped once the new owner realizes just what they've gotten themselves into. We hate to see that happen to the cars AND the owners.

Keep the dream alive. There will still be plenty of cars when you're ready. And if you decide you're ready now, then welcome aboard. Show us any car you're considering first, we can help you make an informed decision.


I will have to disagree with you on this or at least to a certain point and please dont take it as disrespect. I just got my car last summer for less than $10,000 It did run when I got it but yes it needs some love..electrical work, basic engine work from what I have seen so far, brakes, shocks ect. I my self can not pour large amounts into this car all at once but I think if you are a true full blood Delorean fan you can make it work doing it a little at a time, you just got to do it in a smart way so that your not back pedaling and causing a bigger problem. I'm still a new guy to all this I may be wrong here but I know that if I didnt buy my car when I had the chance that I may never have gotten it. I do think I got a really good deal on it tho. Like I said though this is just my opinion, not being rude by any means. :wrenchin:

[aipri]

I am financing the D that I am in the process of purchasing. I went through JJ Banc. The process was pretty easy and they were very helpful. Interest rates aren't quite as low as a normal loan but as you know options are limited. Nothing wrong with financing guys!

[opethmike]

I'm with the previous poster. I financed my car as well. I really disagree with the 'if you can't buy it out right you can't afford it' mentality. The ONLY difference between financing a modern car and a DeLorean is that the DeLorean is probably going to need more work more frequently. So one needs to evaluate if the payments can be afforded comfortably, and a 'fix me' stash can be set aside at the same time.

[DashEight]

I financed a part of my DeLorean to have another reporting account on my credit history. The money I save on the better loan rate (due to a higher credit score) when buying a warehouse is what I am after. I have a microscopic a.p.r. on the car and after the purposefully large down payment; my payments are $60.00 a month for 36 months. The Loan requires full coverage insurance. It is a couple hundred dollars a year from a classic car insurance company. So it is very cost effective compared to a new car’s standard insurance rate. I would have the same agreed value coverage regardless of the loan. So if you finance it for the same reason I have it’s a good deal. This is one of 8 cars I own so it is a pure luxury item for me. Unless it is your 2rd (or higher) car, I wouldn't finance it.

Wanted to add that the car is financed by BECU. Boeing Employees Credit Union.

[Kane]

I went with USAA. They gave me no trouble with financing. It's not simple to become a member, but if you can, it's totally worth it.

[Kenny_Z]

I financed mine. The bank had no issues with setting up a loan on the car. The interest is a little higher for used vs new. I wanted her, was within my means to buy her, and have no qualms about letting her sit undriven for extended periods. I just didn't have all the cash to purchase her outright. I wanted a fixer-upper and was willing to take the risk on a painted D for a good price. It paid off for me.

Driving or not she's my project. I could spend the monthly payment paying for a gym membership I'll never use or on some other stupid hobby to occupy my time. Instead I spend it paying for my car and buying parts if needed. In the end I have zero regrets.

[DMC81]

I financed mine. The bank had no issues with setting up a loan on the car. The interest is a little higher for used vs new. I wanted her, was within my means to buy her, and have no qualms about letting her sit undriven for extended periods. I just didn't have all the cash to purchase her outright. I wanted a fixer-upper and was willing to take the risk on a painted D for a good price. It paid off for me.

Driving or not she's my project. I could spend the monthly payment paying for a gym membership I'll never use or on some other stupid hobby to occupy my time. Instead I spend it paying for my car and buying parts if needed. In the end I have zero regrets.

Well said Sir.8)

[mluder]

I financed mine as well. Quite honestly I could not afford to pay cash for my car. That being the case I have had no problem making payments AND buying parts/maintaining my car. It's no different from buying any used car that might need unknown parts or service.

If you want it and you can afford the payments, do it.

Cheers
Steven

[jawn101]

Wow! I honestly didn't realize I'd be in the minority on this. Live and learn I guess. I still stand by my opinion, but that's all it is - there are a lot of very successful owners on this thread, and if they made it work it's obviously possible!

Best of luck finding your car. Just buy wisely if you do buy - I doubt there will be any argument on that :)

[Josh]

Wow! I honestly didn't realize I'd be in the minority on this. Live and learn I guess. I still stand by my opinion, but that's all it is - there are a lot of very successful owners on this thread, and if they made it work it's obviously possible!

Best of luck finding your car. Just buy wisely if you do buy - I doubt there will be any argument on that :)

I agree with you Jon. I saved up and bought my car, which is almost insignificant in the scheme of things. The purchase price of the car is only 1/3 or even 1/4 of the amount of money I am going to put into the car within the first few years of ownership. But its all budgeted for and paid with money I have saved. If I didn't have the money, I would not have a delorean (at this time at least)

[seventy4burban]

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

I financed mine. I didn't have the money to outright buy it but I could put money aside for a monthly payment plus extra. I used the Capital One blank check program. At the time I was able to get a pretty good interest rate and since I got the car for a pretty good price so I went for it.

[SteveyP]

From my own experiences then here's my opinion (and that's all that it is - so please feel free to ignore it if you like.) But financing a toy (and that's what a DeLorean really is - a lovely big boy's toy) is kind of troubling to me.

My D - VIN 4468 was a cheap Texas 'project' (somewhat more of a project than I had expected LOL) car imported back to the UK last September. And she has burned up an equal amount of money this side of the pond already. These toys are very expensive. There is rarely such a thing as a cheap DeLorean. So don't have any misconceptions about that before you enter into the buying process. Even a seemingly strong one, with great interior, will probably require a couple of thousand spent on it straight away.

BUT, I guess these cars hold there value well. And if you invest money into it, then you should see some/all of that money back if you had to sell it (although a proviso here is that a quick sale will inevitably mean accepting a lesser offer.)

It's up to you mate. But for a second car, a bit of fun, then I'm not sure I'd be happy having a loan hang over me for 3/5 years. At the end of the day it's totally upto you though ain't it?

[dmc6960]

I financed half of my car but no, I dont recommend it. Not because I had a bad experience. In fact, mine was pretty good. It was just a perfect storm of conditions which would be hard to replicate for others.

I purchased my car from a dealer, so while negotiating the final price sucked, they handled all of the problems getting a bank to finance part of a 19 year old car (at the time). They say it was VERY difficult for them.
I happened to negotiate a price FAR less than the market value at the time was.
I had enough cash to pay for half of the car outright, WITHOUT completely draining my bank accounts.
I had been involved with local DeLorean owners for 2 years, so I already knew most of the gotchyas and a lot of the general systems.
The particular car I purchased was in very very good condition, and needed no work. I also knew how to inspect it to know that for sure.
The loan term was for 3 years (was supposed to be 4 but that was part of the bank not wanting to do it). I paid it off in 2.

Without all of those factors combined, I likely would not have 06960 today.

[LordFly]

ABSOLUTELY! It's the only way I could ever get it. I won't technically "own" the car until about 2018, but the important thing is that I'm driving it NOW :D My parents co-signed, as my credit is (was?) terrible, but the bank didn't seem to care about the age or type of car or anything like that, they just want to make money off me.

[DavidProehl]

I'm also in the camp of "don't finance." Not for maintenance reasons, but because I don't believe financing cars is a good "investment."

Why would I pay interest on a depreciating asset? Yes DMCs depreciate, $25k in 1981 is not the same as $25k today. Also, what would I do if I lose my job, get really sick, or some other tragedy happens and I have to choose between paying the mortgage, eating, and paying the car loan? Well, I'd lose the car to the bank and lose all the cash I'd put in thus far.

Car loans create additional risk for you. Not a problem if everything goes according to plan, but if you run into trouble you'll wish you'd saved for a few years (I saved for the better part of a decade before buying).

Plus, if you haven't lived without a car loan, you don't know the freedom of having an extra couple hundred dollars every month to do whatever you want with, like buying DMC parts!

[Jonathan]

SteveyP mentioned more or less what I was going to add... that it is a toy. I would look at your decision to finance a DeLorean similar to how you might if buying a boat, jetski, snowmobile, motorbike, etc. And do so whether it is a project requiring a lot of additional time, money, and effort, or whether it is ready to go right out of the gate. The Ds are toys in much the same way these other items are, and some hold their value well and some are terrible at holding their value. A classic car can hold its value a lot better than a boat in most cases, but you don't have to look far to find a classic car guy that put some significant amount of money into his car and years later is selling it for no better than half that amount.

Point is, I wouldn't justify buying a DeLorean or not on credit the same way you would when justifying buying a daily driver on credit (and Ds not being DDs is another topic!). I would consider your decision as to put it on credit or not more along the lines of what you would do when buying any of these other toys, heck, even household stuff like living room furniture, a home theatre system, or putting a pool into your backyard.

That might get us into a discussion on using credit in general and the "generation now" debate. Put it on a credit card if you pay the balance at the end of the month and earn cash back or points, etc. But the whole "don't spend money you don't have" message seems to have gotten lost a number of years ago. If you finance your car, don't worry about being an oddball in your decision, as you will be among many who did. The debt problems in the economy extend quite a bit further than just those of us on a car forum.

[nullset]

When I bought mine, I had a decent down payment, and I went through one of the "exotic car financing" places on eBay (where I bought the car). They approved me but the rate was horrendous.

I called my credit union, and they gave me a personal loan (unsecured) in the same amount, which a much lower interest rate!

The loan will be paid off in a few months. I'm looking forward to that, for sure!

[OverlandMan]

My D is a project/weekend car. I don't use it as a daily driver, nor will I ever most likely. I agree w/ Jonathan in that I look at my DeLorean as a toy similar to that of a boat or something. And for all the toys I've ever bought, I've always paid cash. It was fulfilling to have the title and the car at the same time, all in my name and in my possession.

That said, those who financed their cars did so for their own reasons and that's their decision.

[thirdmanj]

It's all about ones finances and motivations. There different aspects to financing some take a certain moral stance when it comes to financing "...if you can't afford it, don't buy it..." To address this topic in any truly revealing way, we'd have to down a pretty philosophical road and adress the economics and implications of financing in the 21st century. The choice to finance can only be made by the individual. They know (or should) what their financial situation is and as long as they're honest with themselves where their motivations and finances are concerned, it should work out just fine.

[louielouie2000]

I paid cash for my first two DeLoreans, but now that I'm in my 30s with various adult financial responsibilities, I have no problem admitting my third DeLorean (whenever that may be) will more than likely be financed. Here's the deal: DeLorean values bottomed out sometime in the late '90s. Ever since then, they've been stable & moderately increasing. As others have pointed out, compared to other sports/grand touring cars of it's age, the DeLorean hold's it's value better than any of it's contemporaries. So in that way, it's actually far more financially sound to finance a DeLorean vs a new car because the DeLorean is not depreciating. Yes, you are essentially throwing out the money you are spending in interest, but that loss is somewhat offset by inflation and the fact the cars will gain value over time.

DeLorean ownership is like a marriage... every owner has a different relationship with their car, and the way everyone purchases/maintains/restores/modifies/enjoys their cars is utterly different from one person to the next. Don't let anyone dictate to you what ownership HAS to entail, because it's quite different for each one of us. Some people pay cash for their cars, others finance them; some aim for concours originality, others like to customize theirs; some folks think EFI is the best solution to the Bosch K-Jetronic fuel injection system's issues, others prefer the simplicity of carburetors; some folks enjoy restoring and maintaining their cars themselves, others prefer the car to be maintained by one of the various vendors; some folks use their cars as true daily drivers, others think the cars are best reserved for more recreational use. The list goes on and on. There is no one proper way to approach DeLorean ownership. What works for one person may not be applicable to the next. Forge your own path.

[Mark D]

I financed mine. I paid off my 3 year loan in 2 years and had a low APR so I didn't pay much interest. I don't see what the big deal is about financing a car as long as you can afford the payments and understand that there will be additional monthly costs for maintenance and repair. To me the real question is whether or not you can actually afford the car given your income and other expenses. If not, then don't buy one until you can afford it. Financing is just a way to get what you want sooner. You're either going to be making monthly payments towards a savings account for a few years, or making monthly payments to the bank to pay for the car that is already sitting in the garage. I got two additional years of enjoyment out of my car choosing the latter option. The few hundred dollars extra in interest was money well spent.

To each his own though. There is still some risk in financing vs saving the cash up front. If you lose your job or have some other drastic life event a full savings account is going to be much better than having all your money tied up in a car. Everyone's financial and job situation is different so spend some time going through your finances and figure out what you can afford. Have a plan for any other emergencies and do what's best for your own circumstances.

[Jonathan]

"What works for one, may not work for another."

I think what Louie said there, in essence, is something good to keep in mind with just about anything you do in life, not just DeLoreans.

Realize that what someone else is doing might work for them and it may or may not work for you. But only you will know what is right for you. And what they are doing isn't for you to judge or critique. Everyone out there is entitled to make their own decisions. You are, and I am, everyone. Letting people make their own decisions in life and not feeling threatened by those decisions personally, is probably a good recipe for making the planet a nicer place to be. Across all subjects :)

[thirdmanj]

Realize that what someone else is doing might work for them and it may or may not work for you. But only you will know what is right for you. And what they are doing isn't for you to judge or critique. Everyone out there is entitled to make their own decisions. You are, and I am, everyone. Letting people make their own decisions in life and not feeling threatened by those decisions personally, is probably a good recipe for making the planet a nicer place to be. Across all subjects :)

What'd I say? ;)

[bladerunner]

I look at it this way: if you can afford the payment for a Delorean now, then just save the cash each month, like a payment. In the mean time, research the car, think about what you want to do, and in a few years, you will have the cash to go buy your car. I always do the same when I buy a regular car. After I paid off my first car, I just keep saving the car payments and in a couple of years I can buy my next car with cash. Or I typically keep driving the car I have until it dies and enjoy the extra money in my budget.

But if you just HAVE to have it, you could make a solid argument that a D depreciates a lot less compared to a comparable new car.

[Jeff K]

Nope. All cash for my money pit (aka DeLorean) :sad30:

I can see financing a daily driver (or lease in my case), but not a toy car.

[Dangermouse]

"Realize that what someone else is doing might work for them and it may or may not work for you. But only you will know what is right for you. And what they are doing isn't for you to judge or critique. Everyone out there is entitled to make their own decisions. You are, and I am, everyone. Letting people make their own decisions in life and not feeling threatened by those decisions personally, is probably a good recipe for making the planet a nicer place to be. Across all subjects :)

http://www.bethanyingraham.com/wp-content/uploads/2012/09/Life-Of-Brian.jpg

I'm Not!

[Stainless]

"Those who understand interest earn it; those who don't, pay it."
—Unknown

"There is no class of people in the world, who have such good memories as creditors."
—P.T. Barnum

"You don't need no credit card to ride this train."
- Huey Lewis

"A bank is a place where they lend you an umbrella in fair weather and ask for it back when it begins to rain."
—Robert Frost

I dreamed of owning a DeLorean since I was a kid. I thought that it was going to be something that I would do after I retired, later on in life. Long story short, I made it a bigger priority and saved, waited, found the right one, and paid for it with cash. Not everyone has the means to do that, but it would be nice if more people in the world had the patience to do that. I look at Dvonk's Obtain-O-Meter in his signature and it seems like that thing hardly moves, but it does. He'll eventually have the cash to buy a nice D and will be able to own it outright, pay less for the car since it will be an interest-free purchase, and he will have the title from day 1. Financing is a necessary evil for some, but I personally prefer debt, if possible.

[thirdmanj]

http://www.bethanyingraham.com/wp-content/uploads/2012/09/Life-Of-Brian.jpg

I'm Not!

"Life of Brian"?

[Dangermouse]

"Life of Brian"?

I'm Brian and so's my wife :)

[Silverbullet]

Well,...... We ALL Pay to Play, some pay in full, some pay a little at a time. We live in a "I want it now" world, and it works for some and not for others... Only you know how secure your job is, and what your disposable income is... As some have stated the 2 or 3 years having the car, while making payments, was worth the small amount of intrest. They can put time in as a hobby, better than Golf, where you end up with nothing, and some day payments stop.

I have a love for cars, always have, I am a car guy... When I was younger money was tight, as income was less... when older and income is higher, saving and paying cash is nice... But if it fits your budget go get it and enjoy.

Craig

[Mike Z]

I decided in 2010 that I wanted a DeLorean and here I am in 2013 and I still don't have one but I'm working on it. I will be financing because I want a good car from the start and I don't have $25K laying around to blow on a car in one shot. I'm hoping it happens within the next year but I wouldn't be surprised if it ends up being early 2015 (which would still be kinda awesome because of BTTF2)...and I'm saving so I can put down a decent down payment and not have a $400 car payment every month.

When it comes down to it I don't want to save until I'm 40 or 45, I want to drive it and enjoy it while I'm still relatively young.

[thirdmanj]

I decided in 2010 that I wanted a DeLorean and here I am in 2013 and I still don't have one but I'm working on it. I will be financing because I want a good car from the start and I don't have $25K laying around to blow on a car in one shot. I'm hoping it happens within the next year but I wouldn't be surprised if it ends up being early 2015 (which would still be kinda awesome because of BTTF2)...and I'm saving so I can put down a decent down payment and not have a $400 car payment every month.

When it comes down to it I don't want to save until I'm 40 or 45, I want to drive it and enjoy it while I'm still relatively young.

40-45 is still pretty young, old man.

Well,...... We ALL Pay to Play, some pay in full, some pay a little at a time. We live in a "I want it now" world...

We've always "wanted it now" the difference these days is that for the most part we can. Them internets have sped things up and as a result almost everything is faster as a by product. As a species, we're never content with the status quo.

[Silverbullet]

For the Payment people FYI $25,000 financed at 8% (which is low for a used 30 year old car) for 48 months is $610.00 a month which is $4280 in intrest. At 10% it is over $5400.

Craig

[DavidProehl]

Them internets have sped things up and as a result almost everything is faster as a by product.

I thought it was fast food and MTV that caused the I want it now mentality...oh wait, no, that is just what we blamed it on in the 80s and 90s.

[about2livethedream]

Just to clarify, I am looking at this as a hobby and somewhat of an investment. It would not be my daily driver, as my wife and I both have fairly new dependable vehicles that are paid off. Wanted to clarify those points...thanks for all the different thoughts. Very interesting.

[Jonathan]

21096

This won't work for everyone of course, but back in 2005, I gave myself some extra motivation for saving up to buy the DeLorean.

And it was related to quitting smoking.

I smoked like a chimney for years, say from age 15 to 25 roughly. About half a pack per day on average. I knew all the reasons why I needed to quit, and yet it remained super difficult to do so.

I had gotten the idea of actually getting a DeLorean at some point back then, perhaps related to the Internet letting you look things up you didn't have the opportunity to in the past. I knew I wanted to own a DeLorean at some point and I knew I didn't want to smoke the rest of my life. When smokes in Canada went over $10 per pack, I made myself this little pickle jar you see in the photo.

The two labels were "DeLorean Fund" and a (poor artistic attempt of) the no smoking symbol. Each day from October 16, 2005 onwards I put $5 in it, as that was about what smoking was costing me. Every month I then took the $150 or so that was in it and put it into a savings account at the bank I had opened specifically for that purpose.

Now, by no means did this magically add up to the $25k+ that would be needed when I bought my car in 2007, but it definitely got me started. I think I actually spent a chunk of the savings on paving my driveway, lol.

It is kind of that "latte a day" idea to saving money. The bonus was it got me through the tough first part of quitting smoking. And 3937 is sitting in the garage at least partly because of that :)

[thirdmanj]

I thought it was fast food and MTV that caused the I want it now mentality...oh wait, no, that is just what we blamed it on in the 80s and 90s.

No one ever thinks to blame themselves. It's human nature to want instant gratification. We're not a patient people...generally speaking. "Fast food" is a terrific example of this.


Just to clarify, I am looking at this as a hobby and somewhat of an investment. It would not be my daily driver, as my wife and I both have fairly new dependable vehicles that are paid off. Wanted to clarify those points...thanks for all the different thoughts. Very interesting.
Also, generally speaking, cars are lousy investments.

[Josh]

Also, generally speaking, cars are lousy investments.

X2! However, I do appreciate that up to a point, the parts installed and work done to this car increase its value. You can take a 8k car and triple its value. Not alot of cars you can do that with!

[louielouie2000]

For the Payment people FYI $25,000 financed at 8% (which is low for a used 30 year old car) for 48 months is $610.00 a month which is $4280 in intrest. At 10% it is over $5400.

Craig

This is what I was saying by it's an offset/wash in regards to financing a vehicle that is appreciating in value vs depreciating. Let's say you buy a $25,000 DeLorean with cash today. Do you think you'd be able to buy the exact same condition car in 5 years for the same amount of money? Due to inflation & DeLorean values rising, probably not. In fact, you might just come out ahead if you buy now & finance vs waiting several years & saving.

Obviously it's anyone's guess where values will be in 5 years, but it might turn out to be a smart gamble to finance & buy now. Just something to think about, especially seeing how the last DeLoreans are now 30 years old. The 30 year mark is really a transitional milestone for cars being viewed as classics/antiques vs simply being used/future collectors.

[bladerunner]

21096

This won't work for everyone of course, but back in 2005, I gave myself some extra motivation for saving up to buy the DeLorean.

And it was related to quitting smoking.

I smoked like a chimney for years, say from age 15 to 25 roughly. About half a pack per day on average. I knew all the reasons why I needed to quit, and yet it remained super difficult to do so.

I had gotten the idea of actually getting a DeLorean at some point back then, perhaps related to the Internet letting you look things up you didn't have the opportunity to in the past. I knew I wanted to own a DeLorean at some point and I knew I didn't want to smoke the rest of my life. When smokes in Canada went over $10 per pack, I made myself this little pickle jar you see in the photo.

The two labels were "DeLorean Fund" and a (poor artistic attempt of) the no smoking symbol. Each day from October 16, 2005 onwards I put $5 in it, as that was about what smoking was costing me. Every month I then took the $150 or so that was in it and put it into a savings account at the bank I had opened specifically for that purpose.

Now, by no means did this magically add up to the $25k+ that would be needed when I bought my car in 2007, but it definitely got me started. I think I actually spent a chunk of the savings on paving my driveway, lol.

It is kind of that "latte a day" idea to saving money. The bonus was it got me through the tough first part of quitting smoking. And 3937 is sitting in the garage at least partly because of that :)

Nice story:thumbup2:

[thirdmanj]

Nice story:thumbup2:

Naaah... He's blowin' smoke!! ;)

[Silverbullet]

21096

This won't work for everyone of course, but back in 2005, I gave myself some extra motivation for saving up to buy the DeLorean.

And it was related to quitting smoking.

I smoked like a chimney for years, say from age 15 to 25 roughly. About half a pack per day on average. I knew all the reasons why I needed to quit, and yet it remained super difficult to do so.

I had gotten the idea of actually getting a DeLorean at some point back then, perhaps related to the Internet letting you look things up you didn't have the opportunity to in the past. I knew I wanted to own a DeLorean at some point and I knew I didn't want to smoke the rest of my life. When smokes in Canada went over $10 per pack, I made myself this little pickle jar you see in the photo.

The two labels were "DeLorean Fund" and a (poor artistic attempt of) the no smoking symbol. Each day from October 16, 2005 onwards I put $5 in it, as that was about what smoking was costing me. Every month I then took the $150 or so that was in it and put it into a savings account at the bank I had opened specifically for that purpose.

Now, by no means did this magically add up to the $25k+ that would be needed when I bought my car in 2007, but it definitely got me started. I think I actually spent a chunk of the savings on paving my driveway, lol.

It is kind of that "latte a day" idea to saving money. The bonus was it got me through the tough first part of quitting smoking. And 3937 is sitting in the garage at least partly because of that :)

Be VERY glad you quit... and 1/2 pack a day is not a lot... My Dad smoked 3 packs a day... and died of lung cancer in 1994, before he turned 67 years old... I still miss him... I did everything I could to convince him to stop... Then he did after stage 3 lung cancer was found... gone 14 months later... The Delorean is a WAY better place to put your money...

Craig

[aipri]

For the Payment people FYI $25,000 financed at 8% (which is low for a used 30 year old car) for 48 months is $610.00 a month which is $4280 in intrest. At 10% it is over $5400.

Craig

Just as a point of reference, I got approved for 6.99% with JJ Banc. I have excellent credit so that was the lowest they go. That being said I put down a large downpayment and will be paying the loan off much faster than the 5 years. With them there is no penalty for paying off early, so you can avoid paying the entire interest amount. This was a good option for me because as others have said, I didn't want to clean out all of my savings in one shot. This way I have some flexibility.

[LordFly]

Just as a point of reference, I got approved for 6.99% with JJ Banc. I have excellent credit so that was the lowest they go. That being said I put down a large downpayment and will be paying the loan off much faster than the 5 years. With them there is no penalty for paying off early, so you can avoid paying the entire interest amount. This was a good option for me because as others have said, I didn't want to clean out all of my savings in one shot. This way I have some flexibility.

As another point of reference, I think my loan is at 10% (or very close to that). I have terrible credit. But making DeLorean payments is slowly fixing that. By the end of it all, I'll have "wasted" about $5000 or so in interest, but my credit rating will be considerably better. And you know what? There's a DeLorean in my garage right now. In fact, I'm going to go take it for a drive right now, then wash it for the show tomorrow :D Have fun saving up everyone! :wink:

[Lenny]

I financed mine at my credit union. I got a rate of 4.5 percent.

[Silverbullet]

Is that a "Car Loan" where they hold the title, or a Home equity loan, or just a unsecured loan?

[Lenny]

Is that a "Car Loan" where they hold the title, or a Home equity loan, or just a unsecured loan?

If you are talking about mine it was a Used Car Loan

[Silverbullet]

If you are talking about mine it was a Used Car Loan

Credit Unions are great... That is a GREAT rate for a used car loan.... Sweet!

Craig

[howlingwind13]

I bought mine 11 years ago...financed it for 14k...took advice from other owners rule of thumb back then, that if you paid under 25k expect to pay at least that much to bring it up to par...and then some. Of course that really doesn't apply now a days when people try to sell you a $30k because they think it's worth it and it's really a mechanical nightmare on top of being 30 years old.
So knowing that I would eventually have to sink probably 10k or more into it...I bought it anyway.
Then "life got in the way" and the car had a major meltdown...needless to say after I paid the car off (that was sitting undriveable for years) I used the car as collateral to get another loan to fix it. Not the best way to go about things but, now it's running and driving, only took 10 years.
If I had to do it over again...I probably would...just because if I didn't buy the car when I did...I never would have been able to.


mike

[Jonathan]

Nice story:thumbup2:


Naaah... He's blowin' smoke!! ;)

Thanks! Hahaha... thankfully the only smoke is that ocassionally eminating from my wallet after the next PO-DMC surprise appears! ;)


Be VERY glad you quit... and 1/2 pack a day is not a lot... My Dad smoked 3 packs a day... and died of lung cancer in 1994, before he turned 67 years old... I still miss him... I did everything I could to convince him to stop... Then he did after stage 3 lung cancer was found... gone 14 months later... The Delorean is a WAY better place to put your money...

Craig

You got that right, Craig. There are two or three decisions I made in the past decade or two and think of them being "the best decisions I ever made." Quitting smoking is very high on the list.

Strange how as a young person, you "know what you are doing" and have all the answers. Yet, quitting before it gets ingrained in you doesn't register the same way it does when you're 30, 40, 50, ... So many things we all have to learn the hard way as kids or young adults because we can't seem to take the good advice offered to us by our elders. To me, spending time with your grandparents is probably the best example. Doing it before it is too late and then you can't. And that there, if quitting smoking isn't number one, would be my best decision ever made, on Remembrance Day in November 2006... Grandparents don't live forever.

[Kane]

I got the loan last month at 2.75% through USAA.

[Silverbullet]

Thanks! Hahaha... thankfully the only smoke is that ocassionally eminating from my wallet after the next PO-DMC surprise appears! ;)



You got that right, Craig. There are two or three decisions I made in the past decade or two and think of them being "the best decisions I ever made." Quitting smoking is very high on the list.

Strange how as a young person, you "know what you are doing" and have all the answers. Yet, quitting before it gets ingrained in you doesn't register the same way it does when you're 30, 40, 50, ... So many things we all have to learn the hard way as kids or young adults because we can't seem to take the good advice offered to us by our elders. To me, spending time with your grandparents is probably the best example. Doing it before it is too late and then you can't. And that there, if quitting smoking isn't number one, would be my best decision ever made, on Remembrance Day in November 2006... Grandparents don't live forever.

I don't preach, but I will add encouragement to people who quit... Smoking is just stupid, because people think it will never happin to them...but just when you want to live, do things and have money in the bank... you die...

As for payments on loans... it costs way less than playing Golf, and if your hobby is WORKING on the car and being able to take it places and have fun, there is nothing wrong with making payments.

Craig

[Mike Z]

My credit union has car loans for 2.25% if you have excellent credit which I do. Hopefully it will still be that low when I'm ready to get my DeLorean :cool:

[aotmfilms]

Well said Sir.8)


I financed mine. The bank had no issues with setting up a loan on the car. The interest is a little higher for used vs new. I wanted her, was within my means to buy her, and have no qualms about letting her sit undriven for extended periods. I just didn't have all the cash to purchase her outright. I wanted a fixer-upper and was willing to take the risk on a painted D for a good price. It paid off for me.

Driving or not she's my project. I could spend the monthly payment paying for a gym membership I'll never use or on some other stupid hobby to occupy my time. Instead I spend it paying for my car and buying parts if needed. In the end I have zero regrets.

<clap> <clap> I feel the same way, financing mine via USAA. I have money budgeted for fixing things as well. In my situation I would rather have a mechanically sound car with dings here and there than a nice looking car that craps a trans. Panels for me are easier to fix.

[aotmfilms]

ABSOLUTELY! It's the only way I could ever get it. I won't technically "own" the car until about 2018, but the important thing is that I'm driving it NOW :D My parents co-signed, as my credit is (was?) terrible, but the bank didn't seem to care about the age or type of car or anything like that, they just want to make money off me.

Yeah, I am financing 30 to 37k. 5k I plan to put down. I make very good money and single with no kids. I am currently looking at a couple at DMCMW. I won't "own" the car until 2021 :). For me it is a good investment as how the car will hold around 25 to 29k value based on my research vs. the depreciation of a new car. I've been studying D's since June 2014, and have liked them since I was 12 (1982), but I still am bracing myself for a couple surprises so I bought the:

The Illustrated Buyer's Guide to DeLorean Automobiles

http://www.amazon.com/Illustrated-Buyers-Guide-DeLorean-Automobiles/dp/0985657804/ref=sr_1_1?ie=UTF8&qid=1430844209&sr=8-1&keywords=Illustrated+Buyer%27s+Guide+to+Delorean+A utomobiles+by+James+Espey

To round things out.

[aotmfilms]

My credit union has car loans for 2.25% if you have excellent credit which I do. Hopefully it will still be that low when I'm ready to get my DeLorean :cool:

It would be nice. My pre-approval with good credit is 5%. Very good credit (720 and above), will get you 4% from what USAA tells me. I just went back yesterday and re-requested an approval since my earlier one expired. Every 45 to 90 days you have to do this unfortunately but this is necessary when shopping for a D as how it takes time to travel, take time off from work etc. Off topic, something to factor in as well: Every time I go somewhere it costs me a MINIMUM of $200 dollars if I drive (Hotel and Gas), so factor that in as well. Being old school, I am not comfortable with just looking at pictures. I have to go see the car. Flying to Texas or Florida in September, from Michigan will cost me more obviously so factor that in with the cost of the car #projectdelorean.

[David T]

It would be nice. My pre-approval with good credit is 5%. Very good credit (720 and above), will get you 4% from what USAA tells me. I just went back yesterday and re-requested an approval since my earlier one expired. Every 45 to 90 days you have to do this unfortunately but this is necessary when shopping for a D as how it takes time to travel, take time off from work etc. Off topic, something to factor in as well: Every time I go somewhere it costs me a MINIMUM of $200 dollars if I drive (Hotel and Gas), so factor that in as well. Being old school, I am not comfortable with just looking at pictures. I have to go see the car. Flying to Texas or Florida in September, from Michigan will cost me more obviously so factor that in with the cost of the car #projectdelorean.

When buying a used car, especially an old one, borrowing money is not the best strategy. Not only must you have the money to buy the car you MUST budget and be able to handle the costs of the inevitable repairs the car will require. The very worst scenario is where you borrow to your limit, the car breaks down and it will take more than you can afford to fix it up. Now you are stuck with the payments on a car you can't use and can't fix. If you try to sell it to get out of the payments you will take a big loss because it won't run so you can't pay off the loan by selling it. Now what do you do? Borrow more money to fix the car?

[bfloyd]

I paid for mine outright in cash... as in a stack of $100 bills. In hindsight, the method in which I paid for it was something you'd read about in the news of a Craigslist horror story, but clearly I wasn't thinking about anything but the car when i bought it. I drove (alone by myself) 2 states over to meet a Craigslist seller I'd never met before with $9k in cash riding shotgun in the front seat of my truck. Probably one of the dumbest things I've ever done. The whole transaction turned out well, I didn't get killed, the truck didn't get stolen, or arrive to find no Delorean.

I own business with my wife (movie industry) and work a day job as well, so the Delorean for me is more of a mid-life crisis toy. I didn't finance our daily drivers either. Only thing I've ever financed in the last 15 years has been my house and our business. House is almost paid for and the business will be in about two years.

My wife and I agreed to about $3,000 a year from our family budget for the Delorean, and that's something realistic that I can live with. I'm doing all of the work myself, learning more about the car each day as I go.

[Chris 16409]

I got a loan at my local credit union for my DeLorean. The only reason I was able to afford it was because I still lived at home at the time. It was either move out and pay rent or buy the car I've always wanted. I decided to stay at home for a few more years. I have been lucky (knock on wood) and drove it as my daily driver for 4 years and did my maintenance/upgrades on the weekends. Once I started teaching and earning a living, I was able to pay the loan off early. I believe I financed around $18,000, and paid the rest in cash. Had I saved up the money and bought one outright, I probably would have paid more. My car was driven and well maintained all it's life. It had more miles than most DeLorean cars, but was much more reliable. It feels good to own it now though.

[dn010]

I traded for mine, I got the D + an additional $1K with it. Back in '02 though... :smile:

[SKnight]

I got a loan for mine through my credit union with a really good interest rate. I also put a decent down payment on it, so the monthly bills aren't too bad. As long as you can live with the payments and are able to budget for maintenance/upgrades then there's nothing wrong with financing.

[Dangermouse]

I made my PO an offer he couldn't refuse............

[davidc89]

I financed mine, but it was no easy task. A lot of banks turned me down because of the make of the car, not because of my credit score. They couldn't put a value on it, even though they had NADA guidelines. If they did give me an offer it was a short term high interest type loan. After a lot of rejections and I was able to find a bank that believed in my dream as well. I had never had a loan before though either and I am 26 years old. So that probably didn't help much either. I bought a good car that didn't need a lot of stuff either. But if something does happen I am able to pay for parts as well. They need a little more love, but it is an old used car. Its to be expected.

[LordFly]

I financed mine, and I'd do it again in a heart beat. Coming up with a few hundred a month is nothing, but saving up $20K+ takes time. A lot more time than I felt like waiting to get one. If you're just scraping by and it's the decision between food and a car, maybe financing a classic car is not he best. But if you've got a reasonable amount of disposable income, financing a classic car is no different than financing a new car (a side from the fact that there are repair bills to pay). Ultimately it just comes down to how good you are with your money. The worst that can happen is you lose you job and have to sell the car, pay off the remainder of the loan, and use the rest to live off while job hunting.

And on those days when you hate your job, driving your DeLorean to work makes it a little bit better :)

[berickson926]

I financed but it was probably the worst car buying process I could imagine. Restrictions on financing and difficulties in sorting out the paperwork became a nightmare when combined with other issues I had with the actual classic car dealership.

I got a good rate from my credit union similar to what was mentioned by others in this thread. The CU was also far more lenient about duration worked at job, salary, down payments, etc. compared to classic car finance companies I spoke to.

Once I had my loan pre-approval I thought I was in the clear to make an offer. The offer was accepted by the dealer and I tried to finalize details with the CU. Only at this point did the CU try to back out repeatedly for reasons not initially disclosed to me. I ended up having to battle the them for weeks and supposedly the CU CEO had to approve the deal personally in the end.

A few things I had to painfully learn throughout the whole ordeal:

-CU didn't really want to deal with financing a car from a private seller, so I focused on cars held by dealerships.
-CU only allowed the car to be registered prior to sale in your home state (CA for me, which also requires valid smog - the smog cert is another fun story).
-CU only wanted car purchases for relatively new/used cars (I think they told me only up to 10 years old).
-CU tried to say they will only approve loans for only the bottom end NADA guide valuation on used cars. That is $16k for the DeLorean which was not in line with my actual offer, the condition of the car, or my loan approval limits.

I had gone with this same CU to finance my daily driver which was not difficult at all. I made a serious oversight in assuming buying the DeLorean would be an equally painless experience.

The car I have now is actually the second DeLorean I tried to buy! I ran into the 'no out of state cars' issue early on.

[Gregadeth]

For those who financed through a credit union with a low interest rate, can I ask what kind of CU? I also plan on financing part of my purchase but so far the credit unions I've contacted - including the one through my employer - won't finance cars older than 7 years. Their only exception is taking a personal or unsecured loan which inevitably has a much higher rate.

[aotmfilms]

When buying a used car, especially an old one, borrowing money is not the best strategy. Not only must you have the money to buy the car you MUST budget and be able to handle the costs of the inevitable repairs the car will require. The very worst scenario is where you borrow to your limit, the car breaks down and it will take more than you can afford to fix it up. Now you are stuck with the payments on a car you can't use and can't fix. If you try to sell it to get out of the payments you will take a big loss because it won't run so you can't pay off the loan by selling it. Now what do you do? Borrow more money to fix the car?

Actually I make good money In the 64k to 84k range depending on Customer reviews (I am in IT), Customer's like me, I get bonuses and stuff, 44 years old, single with no kids (scratch that, the Delorean will be my "kid"), and my daily driver is paid off. My insurance for my 2007 Sonata and 81-83 Delorean thru USAA is roughly $170 dollars per month for BOTH cars. There is a portion of that insurance policy that allows me to store the D from October to April, so I am in about as good of a position as I will ever be in aquiring this car.

(Actually I am better than that because being 20 years retired from the US Army, USAA will more than happily take a portion of my Army retirement check if I were to default on my car loan.) ;)

I also have the DMC Parts Manual, The Illustrated Buyer's Guide to Delorean Automobiles, The Workshop Manual and Owner's Manual so I am not flying blind. More than likely I will be buying from DMCMW but keeping my options open.

CAVEAT: I have been researching this since June 2014 and have already driven a Delorean already. (The guy wanted more that what I was willing to pay, else I'd have a VIN by now)

:)

[David T]

Actually I make good money In the 64k to 84k range depending on Customer reviews (I am in IT), Customer's like me, I get bonuses and stuff, 44 years old, single with no kids (scratch that, the Delorean will be my "kid"), and my daily driver is paid off. My insurance for my 2007 Sonata and 81-83 Delorean thru USAA is roughly $170 dollars per month for BOTH cars. There is a portion of that insurance policy that allows me to store the D from October to April, so I am in about as good of a position as I will ever be in aquiring this car.

(Actually I am better than that because being 20 years retired from the US Army, USAA will more than happily take a portion of my Army retirement check if I were to default on my car loan.) ;)

I also have the DMC Parts Manual, The Illustrated Buyer's Guide to Delorean Automobiles, The Workshop Manual and Owner's Manual so I am not flying blind. More than likely I will be buying from DMCMW but keeping my options open.

CAVEAT: I have been researching this since June 2014 and have already driven a Delorean already. (The guy wanted more that what I was willing to pay, else I'd have a VIN by now)

:)

Buying from a Delorean vender at least you can get a very good idea of the car's condition and can create some kind of a budget and list of what the car needs so you aren't completely surprised. Since you have the manuals you might try doing some of at least the minor repairs yourself. Your budget goes a LOT further if you only have to buy parts and you have the time to do the work yourself.

[ssdelorean]

Not I. I’m one of the weird ones who saved his money and then paid cash for my D.
Can’t stand being in debt. When I buy something, it’s mine. I don’t want to be at the mercy of employer, economy, lender, etc.

For the years I was saving I read all he could about the car (books, DML, DMCTalk, etc.), joined a local club to learn more about the car & made some great life long friends along the way. I’m also glad I went this route because I learned alot from everyone else’s triumphs and tragedies before making the jump into ownership.



A side thought (“squirrel”) -
For those of you who financed… Are you allowed to modify your car?
If you do modify and put more money into your car while paying it off, if you default on your loan for what ever reason and they have to repossess your car - do they just take it as is, or are you allowed to remove the modified parts, upgrades & improvements (and you put on the original parts) since that is not what was financed?

Besides all the profit they are making on your interest they might be making out even more in the end with your improvements/mods.

[aotmfilms]

Not I. I’m one of the weird ones who saved his money and then paid cash for my D.
Can’t stand being in debt. When I buy something, it’s mine. I don’t want to be at the mercy of employer, economy, lender, etc.

For the years I was saving I read all he could about the car (books, DML, DMCTalk, etc.), joined a local club to learn more about the car & made some great life long friends along the way. I’m also glad I went this route because I learned alot from everyone else’s triumphs and tragedies before making the jump into ownership.



A side thought (“squirrel”) -
For those of you who financed… Are you allowed to modify your car?
If you do modify and put more money into your car while paying it off, if you default on your loan for what ever reason and they have to repossess your car - do they just take it as is, or are you allowed to remove the modified parts, upgrades & improvements (and you put on the original parts) since that is not what was financed?

Besides all the profit they are making on your interest they might be making out even more in the end with your improvements/mods.

Well I would think that most "repossessions" would be hard to do if the vehicle was in storage as how they couldn't get to it to get it, so I would think that you could have the time to take your stuff off but in any instance it would probably devalue to the point were they would just come after you for the difference. One of the good things about Deloreans now is that they don't depreciate like most cars do. Most places just send the car to an auction house and get what they can for it then come after you for the difference. Its a win win for the bank. In my case USAA will just go after my Army Retirement (one of the few that can do that) and DFAS will pay them automatically.

I could eat Ramen for another year and add to the 5k that I have for a Delorean, so save 15k more = 20k (for the last 4.5 years I paid off an 80k divorce at 20k per year saved, but that was rough, baloney and ramen were my best friends during these past 4.5 years and part of the reason I'm doing something for me in getting the Delorean), but with the BTTF craze going on a 20K D is selling for 25 to 30k, hence the financing. It is what IT is I guess. I am not in a rush but would like to own one before the end of summer else I'll just save the storage fees, etc. and wait until next spring when I should have at a minimum 10k to put down.

So to answer your question. It depends on where you have the D stored, and if anything you did would bring value to the car, but most times they will auction it off and then you will be stuck for the balance.

Sorry about the run-ons but its late and just typing what I am thinking.

(Source: My uncle who repo'd cars for Michigan National Bank back in the day).

[aotmfilms]

Buying from a Delorean vender at least you can get a very good idea of the car's condition and can create some kind of a budget and list of what the car needs so you aren't completely surprised. Since you have the manuals you might try doing some of at least the minor repairs yourself. Your budget goes a LOT further if you only have to buy parts and you have the time to do the work yourself.

I agree. I plan on taking a couple of automotive classes at Macomb CC just to get me back up to speed on some things. My priority is that the car is as close to mechanically sound as it can be before I buy it. IE Transmission and engine. Frame and panels I can work with as how I know some good welders, body shop folks, but if it craps a trans then my headache will increase.

So the priority is, if it has a ding here and there, fine. If it has a tear in the seat, fine. If the radio don't work, fine. If the door ajar indicator with the buzzing comes on, I'll wear earplugs or unplug the dang fuse, until I get it fixed or fix it BUT if the engine and trans (or in the case of summer, AC) are FUBAR, I'm sunk.

One of the redeeming values of Michigan is that it is only warm here 3 months out of the year, so if the AC goes out, I can still potentially drive the car for 3 months out of the year (April, May and October) before I start roasting in it, so the bar is low (engine and trans HAVE to work sort of reliably, everything else is just gravy).

Honestly, the car probably will never go farther than 15 miles in a straight line from Macomb Michigan. If it goes farther, I'll borrow a friends closed car hauler trailer and transport it (DCS 2016?)

Thank you for your advice.

[SKnight]

A side thought (“squirrel”) -
For those of you who financed… Are you allowed to modify your car?
If you do modify and put more money into your car while paying it off, if you default on your loan for what ever reason and they have to repossess your car - do they just take it as is, or are you allowed to remove the modified parts, upgrades & improvements (and you put on the original parts) since that is not what was financed?

Besides all the profit they are making on your interest they might be making out even more in the end with your improvements/mods.

You're absolutely allowed to make modifications, it's your car. When you finance a vehicle, the bank puts a lien on the title because they loaned you the money to buy the car and therefore have an interest in it. It allows them to repossess the car if you default on the loan. That's really the extent of the bank's involvement, they don't have any say on what you do with it, all they care about is getting paid back.

Your second question is interesting. I would assume that as long as you take off any modified parts and put the originals back before the repo-man shows up then the bank really won't care. That's just a guess though.

[David T]

You're absolutely allowed to make modifications, it's your car. When you finance a vehicle, the bank puts a lien on the title because they loaned you the money to buy the car and therefore have an interest in it. It allows them to repossess the car if you default on the loan. That's really the extent of the bank's involvement, they don't have any say on what you do with it, all they care about is getting paid back.

Your second question is interesting. I would assume that as long as you take off any modified parts and put the originals back before the repo-man shows up then the bank really won't care. That's just a guess though.

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]

.... I would assume that as long as you take off any modified parts and put the originals back before the repo-man shows up then the bank really won't care. That's just a guess though.

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.

[Silverbullet]

I would think that it would be harder to get a "Car" loan on a 30 Plus year old car.... Than to just get a bank loan, Home Equity, or Line of Credit... Interest is more than likely lower, and it has nothing to do with the car or car title.

I saved for mine, but if I was to borrow money that is the way I would go.

Craig

[SKnight]

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.

I know that certainly isn't the case with my loan and I can't say that I've ever experienced it.

[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.

[dodint]

Yeah. I don't have a car payment at all right now. I'd rather finance a DMC now instead of a new car. A very good friend of mine is saving for a C7 Grand Sport. I just can't stomach the amount of depreciation he's going to suffer on the drive from the dealer to his house, it's just staggering. If some financial hardship did befall my household I don't think I'd find myself upside down on a DMC loan, especially given I'm bringing cash to the purchase. If I'm socking away $500/mo for five years I might as well drive and enjoy the car today instead of throwing it in a savings account, you know?

Thanks for the tip, mr_maxime. Will file that is a backup plan if things go sideways.

[krs09]

I saved 4k to lessen the overall loan amount to bring down the monthly payments. Once the payment amount was "do" able I took the plunge on a car that sat since '93 and just barely ran, sight unseen. Took 8k to make it a great car with me doing all the work.. sooo yeah... pay within your means

[Rich_NYS]

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.


IIRC, it was well over $25K.

I called in for a bunch of info before getting pre-approved; they looked up the DMC-12 and told me the amount I'd be pre-approved for.



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.

Roger that....that's what I did (mailed in the title.)



RE: financing a DeLorean... I said years ago (when I was still a DeLorean newbie) that although I paid cash, I believed financing versus "saving up" would put you ahead of the "appreciation curve."

I believe that might still be the way to go as long as you get a decent rate.

[dodint]

Old thread but I wanted to respond to 'myself' in case anyone else wondered how it turned out.

USAA will tell you they will finance a collateral value between $25k-47k for a DeLorean if you call and ask. To get the true number you have to actually apply for the credit as they have to do a 'backroom' market analysis that takes up to 24 hours and they won't do it unless you are serious enough to do a credit pull. Not every call center person knows this so be diligent. When I called back to apply for the credit the call center person gave me the $25k number as the collateral value after approving the loan, I had to remind her to check the notes on the backroom analysis.

As of today a 1982 DMC-12 with 21k miles has a CV of $40k with USAA.
Same car costs $60 a month to fully insure under Limited Tort in PA, lots of variables there though.

If you are buying a car from a private party with a lien on the title, USAA sends a check for payoff to the lien holder and will send a second check to your option of you or the seller. I applied on Thursday and had the check on Saturday afternoon, awesome service really.

That is my DMC buying experience through USAA that will probably benefit one or two people at most. ;)

[Foootball_Man]

My current plan is to save up 10k over the course of the next year and finance the rest, if all goes well I'll have a project delorean, or be prepared for one, this time next year!

[dn010]

This makes me want to call USAA and see what they value my D for. I certainly don't want to have an accident and have a low value on it.

As an aside, USAA has been a great company to me-I've been with them since 2006. End of October of last year, a guy had left a side road crossing 3 southbound lanes to get to a gap in the median in order to access the northbound side. Problem was, he did this while I was headed south in my daily driver (not the D) in the left most lane, there was no one else on the road! We collided. Being in Florida, I had no fault and he was 100% at fault and received a ticket, apparently he did not see me coming. I went through his insurance - after a month+ of time waiting for them to do an "investigation" to make sure their insured was at fault, and countless emails and phone calls to them, I decided enough waiting and called my insurance, USAA. Within a week my truck had two estimates and was already at the shop, and I was in a rental. They took care of business fast, waived my deductible and made sure I was being taken care of during the whole ordeal (truck should actually be out of the shop today!).


Old thread but I wanted to respond to 'myself' in case anyone else wondered how it turned out.

USAA will tell you they will finance a collateral value between $25k-47k for a DeLorean if you call and ask. To get the true number you have to actually apply for the credit as they have to do a 'backroom' market analysis that takes up to 24 hours and they won't do it unless you are serious enough to do a credit pull. Not every call center person knows this so be diligent. When I called back to apply for the credit the call center person gave me the $25k number as the collateral value after approving the loan, I had to remind her to check the notes on the backroom analysis.

As of today a 1982 DMC-12 with 21k miles has a CV of $40k with USAA.
Same car costs $60 a month to fully insure under Limited Tort in PA, lots of variables there though.

If you are buying a car from a private party with a lien on the title, USAA sends a check for payoff to the lien holder and will send a second check to your option of you or the seller. I applied on Thursday and had the check on Saturday afternoon, awesome service really.

That is my DMC buying experience through USAA that will probably benefit one or two people at most. ;)

[Rich_NYS]

USAA as changed their interest rates since the last time I financed a DeLorean, they now have a "tiered structure" based on how old the car is.

When I financed 4728, my interest rate was 2.75-ish for any used car....it's now around 6%.

Also a good time to mention [again:] financing is the way to go as long as appreciation will outpace the interest rate. This continues to be proven for all that followed that sage advice...lol. I said it back in 2013 and it's still holds true....enjoy!

[David T]

Financing is a great way to buy a car and not having to wait years to save up enough to afford it. In doing that keep in mind you must have some cash left over to cover the cost of repairs. You do not want to be in the position of borrowing the max to buy the car and not having anything left to get the parts you need. Now you find yourself in the worst position possible. You can't afford to fix the car and you must make payments on a car you can't use. In this way borrowing can be risky if you underestimated what it will cost to fix the car up and/or overpaid for the car.

[Giamanut]

16k 2.4% 36months

[Michael]

USAA as changed their interest rates since the last time I financed a DeLorean, they now have a "tiered structure" based on how old the car is.

When I financed 4728, my interest rate was 2.75-ish for any used car....it's now around 6%.

Also a good time to mention [again:] financing is the way to go as long as appreciation will outpace the interest rate. This continues to be proven for all that followed that sage advice...lol. I said it back in 2013 and it's still holds true....enjoy!




Financing is a great way to buy a car and not having to wait years to save up enough to afford it. In doing that keep in mind you must have some cash left over to cover the cost of repairs. You do not want to be in the position of borrowing the max to buy the car and not having anything left to get the parts you need. Now you find yourself in the worst position possible. You can't afford to fix the car and you must make payments on a car you can't use. In this way borrowing can be risky if you underestimated what it will cost to fix the car up and/or overpaid for the car.


Two very true statements. One was an honest look at the OP subject matter written for a serious buyer thinking of financing.

The other was condesending advice written to a 7 year old.

[Rich_NYS]

16k 2.4% 36monthsWhat 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.

[David T]

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.

[dn010]

You've already spelled it out, twice now. However, I'm confused:


When buying a used car, especially an old one, borrowing money is not the best strategy.


Financing is a great way to buy a car and not having to wait years to save up enough to afford it.

[mr_maxime]

Also a good time to mention [again:] financing is the way to go as long as appreciation will outpace the interest rate. This continues to be proven for all that followed that sage advice...lol. I said it back in 2013 and it's still holds true....enjoy!

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.

[louielouie2000]

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.

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.

[Rich_NYS]

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.

:thumbup: 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.

[Rich_NYS]

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.

+1

(BTW, looking back on my ownership history, I think you gave me some good advice when I posted about buying my first DeLorean in 2013 :thumbup:)

[Rich_NYS]

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.

TBH, I can see the potential for that to happen. If a new owner is uninformed, over-extended...etc.

[mr_maxime]

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.

[David T]

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.

[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.

[Rich_NYS]

New info: USAA has made a lot of unfortunate changes to their processes and interest rate structure. There's now more than twice the paperwork (as in: real paper,) Interest rates are higher than average, and a high credit score doesn't carry as much weight as before.

PSECU mentioned above has better rates, but a bit slower process.

[louielouie2000]

A couple of years ago I bought a vintage Mercedes SL roadster, and financed it through Lightstream, which is an online-only division of Suntrust bank that focuses on specialty loans such as classic cars. The whole process could not have been easier. I applied online & they called me within an hour of my submission. The next morning the funds were in my account. I was able to get a very reasonable interest rate, too (under 5%). Though I paid the loan off in a year... so I didn’t end up paying out a whole lot in interest anyway.

It looks like they’ve altered their program some since I used them: they have shorter loan terms than they used to, and interest rates are a little higher as well. Still, I can’t recommend Lightstream enough from my personal experience. Super easy transaction, reasonable rates, great customer service.

[Rich_NYS]

A couple of years ago I bought a vintage Mercedes SL roadster, and financed it through Lightstream, which is an online-only division of Suntrust bank that focuses on specialty loans such as classic cars. The whole process could not have been easier. I applied online & they called me within an hour of my submission. The next morning the funds were in my account. I was able to get a very reasonable interest rate, too (under 5%). Though I paid the loan off in a year... so I didn’t end up paying out a whole lot in interest anyway.

It looks like they’ve altered their program some since I used them: they have shorter loan terms than they used to, and interest rates are a little higher as well. Still, I can’t recommend Lightstream enough from my personal experience. Super easy transaction, reasonable rates, great customer service.+1

Coincidence....I just came back to this thread to report on Lightstream. Total winner on all accounts, and no BS paperwork hassles.

Sent from my LGL164VL using Tapatalk

[CFI]

I used LightStream for my car as well. Super easy, good rate.

[David T]

Don't discount going to your bank and setting up a personal line of credit. Might be a little more expensive but once set up you can get money quickly when you need it. Good for a quick flip, not a long term loan. Of course this depends on how much you are worth, what you have in the bank etc.

[mr_maxime]

Don't discount going to your bank and setting up a personal line of credit. Might be a little more expensive but once set up you can get money quickly when you need it. Good for a quick flip, not a long term loan. Of course this depends on how much you are worth, what you have in the bank etc.

SunTrust bank outright refused an auto loan for something as old as a delorean. They gave me a rate for a new car and that was higher than what the credit union gave me for the DeLorean loan.

[AirmanPika]

$9100 financed through USAA 11 years ago. Paid off 2011. My DeLorean is the only car I have actually owned outright. As mentioned tho, seems some things have changed so I dunno how easy or generous they are now. Might want to look at credit unions...especially if they are military and you are too. They seem a bit more willing to lend and have better rates.

[dodint]

I have a race car financed with Lightstream. I like them a lot and they would be my default if I weren't a USAA member.

[Rich_NYS]

$9100 financed through USAA 11 years ago. Paid off 2011. My DeLorean is the only car I have actually owned outright. As mentioned tho, seems some things have changed so I dunno how easy or generous they are now. Might want to look at credit unions...especially if they are military and you are too. They seem a bit more willing to lend and have better rates.


I have a race car financed with Lightstream. I like them a lot and they would be my default if I weren't a USAA member.

I'm a USAA member; their banking is very good, and they have good customer service.

In 2015 (when I bought 4728,) the auto loan process was smooth & easy: low rate, no physical paperwork, and a loan amount based on book value.

This past week I learned the lowest rate has almost tripled, they require a notarized POA/Lien Certification, I couldn't get the lowest rate with a credit score of 800, and they only approved half the average book value. I paid off the 2015 loan in 48 months, but that didn't seem to matter either.

While I had a USAA loan in progress, I got a Lightstream unsecured loan for a better rate than a USAA secured loan, and no BS involved.

[dodint]

I bought a late model used car with USAA recently and it was still painless, the way you describe it being before. Must only be for unconvential stuff that they have changed things. Getting my DMC through them took about an extra day because they had to conduct a market analysis for collateral value, but that was it. That was in late 2017.

[Rich_NYS]

I paid off the 2015 loan in 48 months, but that didn't seem to matter either.

I paid off my loan in 24 months....not 48. Short edit time here sucks.

[MrChocky]

There's another option for finance, which you might not have considered. None of this invalidates what has been said here,
and it's my personal opinion that for a car like this, you should at least pay *some* of it out savings to have some skin
in the game.

If any of what I suggest here seems like a gimmick, then it's probably not for you. But it's what I've done for my last
3 cars.

The following uses a number of assumptions and simplifications, which I'll leave as an exercise for readers to spot.

Let's say you find a perfect D for a mythical total price of 24K (we can also assume it's 1995 if you like). You work
out you can pay ~$500/month over 4 years, and peeking at today's car loan rates, let's assume 3.75% (compound
interest).

An amortization calculator comes up with $538.68/month for a total of $25,856.71. Ok, cool.

But what if you were to finance it with a credit card balance transfer offer? This requires that
you have:

* Excellent credit
* Several credit cards with *zero* balance and large limits
* Are on top of paying your bills, *always*.

Balance transfers offers vary a lot, but the good ones might be 2-3% (fixed interest) over 12 months. If you're
lucky, 18 months. Take a look at those slips that the companies endlessly send you. Very
occasionally on new cards, it's 0%.

So, again, $24k, plus the 2% = $24480.
After 12 months, you need to transfer again, with a balance of ~$18.5K with 2% = 18900
And once more, after 12 months = 12800 at 2% = ~13K
And finally for the last year, $6500 = $6630.

The total in interest is approximately $1200. So the amount you want to be paying each month
is actually $525.

Realistically, the alleged saving of $600 over 4 years probably isn't that meaningful giving inflation
and other factors. And there are some obvious downsides to this approach:

* You have to be on top of your payments, and you need to have lined up the next transfer ahead of time,
and set alarms in your calendar to do so.
* The amount the credit card companies require you to pay or the minimum payment, is anywhere from
1-3% of the balance depending. As the balance goes down, the amount they need you to pay is a smaller
and smaller amount compared to a traditional loan - so if you don't keep up paying this amount, you're screwed.
* Your credit score is going to take a big hit as you max out one of your cards.

There are however a couple of advantages:

* Less paperwork in loan establishment, and getting the money usually takes only a day or two max if it's
an existing offer.
* No ding to your credit score for hard credit inquiries (which last 2 years on your report) - assuming you aren't getting a new card
* You get the car title up front, rather than more paperwork at the end to get it passed over
* You have a degree of flexibility in how much you pay. For example, if you had an emergency and ended up having
to work on paying another card down.

Earlier this year, I had an emergency expense. I could have taken it out of savings, but it ended up (for me) making
sense to roll it into a transfer I was doing anyway.


This is obviously flame worth material, so post away.

[David T]

While this scheme is legal and possible, miss one payment and any potential savings is lost. A risky strategy with low potential gain, large possible loss. If you have to do this in the effort to save such a small amount you should rethink your reason for getting into debt in the first place. Try to save money elsewhere either by doing more work on the car yourself or trying to save money buying the parts.

[Rich_NYS]

I get the loan for convenience, and to avoid any "freak accidents" involving loss, theft, or civil asset forfeiture type things.
I pay the loan off super quick to avoid as much finance charge as possible.

For my recent [long distance] transaction, the sellers bank & mine were within 0.10 miles from each other so I had loan funds deposited to my account and we did a cash transaction at the banks. We also got the paperwork notarized at the same time.