Financing a 92 model?

[AndyNSX]

I see what rx7fan is saying. Remember, the person taking out the loan is *guaranteed* to have to pay the ~7% a year. If that person were to invest in the stock market or other capital investment, remember that it's far from risk-free. The chance for the avg. investor to earn the same dollar amount as the amount of interest he paid on the car loan over a six year period is highly unlikely and he will be losing money.

While it may not be a great financial investment, I understand that there are a lot of emotional reasons in car purchases.

 

[DrVolkl]

There is a good article in today's WSJ on people who finance cars over long terms that those of you who think this is a brilliant idea might want to read.

I don't think anyone ever said it was a "brilliant" idea...you made a broad blanketing statement that "if you have to get a loan, you can't afford it".

Do you pay for everything in cash?

 

[myguitar]

I got 5.25% for 72 months from my CU... Paid off the car in less than 4 years.

I think it's a good idea on an NSX because the car will hold it's value and you won't end up upside down and you won't tie up your money in a car that's sitting in your garage most of the time biggrin: Maximus_NSX)... It's when you buy a crap car (read: Ford) that you have to finance for 36 or 48 months so you can keep up with the ever decreasing value of the vehicle.

 

[davidf]

I got 5.25% for 72 months from my CU... Paid off the car in less than 4 years.

I think it's a good idea on an NSX because the car will hold it's value and you won't end up upside down and you won't tie up your money in a car that's sitting in your garage most of the time biggrin: Maximus_NSX)... It's when you buy a crap car (read: Ford) that you have to finance for 36 or 48 months so you can keep up with the ever decreasing value of the vehicle.

Theres my plan right there. Payoff in 4 years. Doubling my pmts. every 2 months like I've done most of my life. If a plan works stick by it.

 

[ef you]

As for the insurance question...the real reason for this thread...has anybody ever checked out http://www.hagerty.com/? I have never gotten a quote, but a friend referred them to me when I was looking at a 60's Lotus Elan that wasnt going to get much time out of the garage. Hope this helps.

Cheers,
Ryan

that's who I'm insuring my 91 NSX with. its around 50 bucks a month for me, and definitely DO NOT have a clean insurance record.

 

[myguitar]

Theres my plan right there. Payoff in 4 years. Doubling my pmts. every 2 months like I've done most of my life. If a plan works stick by it.

You initially set yourself up to have a lower payment so you can keep the money for other things… but if you have extra, throw it on there.

 

[Zishan]

In the past, when I financed, I would always stretch the terms longer than I wanted to take to pay. I did this so my set monthly payments were lower, just in case I had a financially tight month, I could pay the lower set payment. But I would pay 1/4 or 1/3 more than the required payment. So, in turn, I have always paid my cars off months/years sooner than financed for.

I was going to finance my 91 w/27k miles because I didn't want to drop that much cash at once. I liked the way my savings account looked. Well, in a rush to buy the car, I just did the wire transfer and skipped the loan. I like having no payments! :tongue:

But I don't think there is anything wrong with financing. Isn't that the American way...."buy now, pay later" :biggrin:

Just be financial responsible, keep your priorities straight, pray, and you'll be ok!

 

[SOURCE 1]

Ok, I have to chime in here ( due to rx7 guy). You have no clue what this topic starters situation is financially so why run your mouth???

I am presently trying to get a loan on my 95 to reinvest my cash in my car dealereship. It is a buy here pay here car dealership and I usually earn 200-250% on my money. I can buy a car for 1000.00 wholesale and sell it on payments for 900 down and 2900-3900 depending upon the vehicle condition etc.. I get my money back at 50.00 a week incriments from every sale. So multiply that times my 498 accunts that I currently have minus my average of only 7.75% loss rate ( Lowest in the industry because I stay on top of my payments coming in on a daily basis). So the cash that I paid for my 95 is going to cost me a little bit more than the 6% intrest rate I'm getting on the loan.

So If you go off of what you said because I am financing the car I cant afford it? at 24900 a week and over 99k a month I think I can swing it what do you think mr. Rx7?

Also, as for your comment on the why wouldnt you buy a newer one??

Everyone has different reasons but I wanted a 95 for the simple fact it is OBD1 and much easier to toy with. Hell I even bought the highest mile one I could find because I knew I would be building the car this winter...

Any questions?


Brian

 

[davidf]

You initially set yourself up to have a lower payment so you can keep the money for other things… but if you have extra, throw it on there.

Yep, and it works for me.:smile:

 

[steveny]

If you need 6 years to finance a car you can't afford it.

Probably true of a brand new mini van that will drop in value the first year by 50%. If need be it wouldn't bother me to finance an NSX for 6 years.

 

[steveny]

Any questions?

Yes, Are there any special rules-laws about how much you can mark up the autos you are selling?

 

[BladesNSX]

I'm not a genius investor and have been notorious at not making the wisest financial decisions. If I could turn back the clock and make only "Rational" decisions, I would never have purchased my NSX in 2000. I would have lived for a year at my parents house when I started my career and saved up money to put down on a nice home; bought a reliable four door economy car. I would have taken out an equity loan for an investment home. While the market was so hot in S. Florida, I would have sold that investment home a couple years ago and cashed in, or something like that. Again, I'm not knowledgable in investment strategies.

Most of my foolish financial decisions revolve around my NSX. I'm so in love with the Car, I put her first over other things at times which is irrational. Even though my NSX is paid off now, She still sucks money out of me for regular maintanence, replacement parts, those seductive group buys :tongue:

But isn't that the whole point? (Not the foolish decisions) but the fact that buying a car based on the looks, performance, exotic appeal, etc. is all "Irrational". Correct me if I'm wrong, but isn't it a rule of thumb that cars WILL drop in value, they WILL depreciate and NOT appreciate?? Therefore, purchasing a car as an "Investment" isn't usually a wise Idea. What's so great about the NSX is that it holds it's value rather well compared to other cars. However, it will not increase in value on it's own. As my NSX buddy says, "We have an expensive hobby". Owning an NSX is a hobby, not so much an investment.

 

[Zishan]

But isn't that the whole point? (Not the foolish decisions) but the fact that buying a car based on the looks, performance, exotic appeal, etc. is all "Irrational". Correct me if I'm wrong, but isn't it a rule of thumb that cars WILL drop in value, they WILL depreciate and NOT appreciate?? Therefore, purchasing a car as an "Investment" isn't usually a wise Idea. What's so great about the NSX is that it holds it's value rather well compared to other cars. However, it will not increase in value on it's own. As my NSX buddy says, "We have an expensive hobby". Owning an NSX is a hobby, not so much an investment.

Buying the NSX was an investment in my sanity! I was bored out of my mind without it when I sold my first NSX and started driving around a Audi A4 3.0 quattro. Cool car, comfortable, sporty, luxurious, but not a NSX! Wise investment in my opinion. Besides, the heart wants what the heart wants. You only live once and trust me, you are not taking that savings account with you when you go! Live a little.

 

[SOURCE 1]

Yes, Are there any special rules-laws about how much you can mark up the autos you are selling?

No I still sell my cars under KBB.com excellent retail. But there are no laws on markup.

 

[mcano]

Getting back to the original question, I was able to finance my 95 over 6 years with my credit union (Southland Credit Union, Downey, CA). However, the experience was different than past car loan situations. When I began looking for an NSX to buy, I decided to get a pre-approved loan so that I could move quickly when the right car came up. I was also was interested in a 95 or 96 model since these were the least expensive T-top cars available. Unfortunately, my credit union's normal policy is not loan on cars over 7 years old. However, I explained to the loan officer that the NSX is not your average car, that the car does not depreciate like the average car and that I was going to make a $10k down payment. After some internal discussions, my credit union agreed to approve a loan for a 95 or newer NSX as long as the car did not have over 100k miles on the odometer. However, after a few months of looking, I could not find a 95 that was within my budget or in my vicinity, so I asked my credit union if they would make another exception for a 93 or 94 model. This time they agreed without discussion. Now eventually I was able to find a 95 within my budget, so that is what I ended up with. However, the lesson I learned was that some lenders are flexible, so don’t give up if you are initially turned down or limited by loan policies. By the way, I applied with Capital One, but their rates were higher than those of my credit union.

Good Luck!

 

[myguitar]

Owning an NSX is a hobby, not so much an investment.

Yep!!

I keep every toy I ever buy.
The biggest mistake I ever made must have been when I sold my Trek Y3 bicycle. I mean, it went to a good cause, it paid for some of the deductibles on my chemotherapy bills, but now I wish I had just taken out a pay day loan instead! :tongue:

My current toys and sometime soon, the nsx, will never leave my premises! :smile: