Except paying cash for things doesn't build any credit, which like it or not, everybody needs.

 

also very true, thanks.

has anyone done it recently? if so, through who?

 

Best thing is use your money as collateral.. I buy all my cars and trucks like that. I bought 3 work truck a few years back $21,000 and put that in the bank as colateral on the loan. When the loan was paid i still had my $21k.

Did the same on my dump truck.. I had been approved for a $100k truck and needed $30k as a down payment. I put the $30k in the bank and borrowed against that. So i kinda got two loans one for 30k and the other for 70k, and still got my $30k large in the bank. Plus they are kinda cool on not totally securing the said collateral, meaning its not really 100% tied to othe loan, so if you needed couple thousand of the money you could get it..

 

Yeah but he finance 18 grand.

How much are you financing??

Thats why i said most credit unions are forgiving and they offer some of the lowest interests available. Those are the advantages of being part of a credit union bank.

If you're financing like 10-13, im sure a credit union will still give it to you, given you have a good credit score and have a good monthly income.

 

These types of loans are still out there. A friend of mine just financed a 91 NSX last week (literally). It was $27k. I think he used a credit union.

 

that is what i did the first time, my credit union was pretty strict on me using any of the collateral. i dont want to do that again do to my money being locked.

 

I'm not sure owning an FD is wise to begin with

(But it sure is fun )

Have you considered a partial loan? That would reduce the interest you're going to have to pay off (and number of payments), make it easier to get a loan, and still leave you a nice chunk of savings (for the FD to chomp through).

I swear I think my FD knows my bank balance, cause something always breaks when I get my tax refund (FEED ME SEYMOUR!)

 

My buddy just financed his 1994 348 through Scott Credit Union. 4.9 %

 

ill check that out. but i could see that being on a slightly different playing field, Ferrari vs Mazda.

 

This is true if you have no use for cash, but most people do. Being a little leveraged is always good, as the cost of debt is usually lower than the cost of equity. So this leaves him cash in the bank to go put to work in other areas if a good opportunity comes up.

Or what if something really unfortunate happens (health issues that aren't covered by insurance for example) you definitely want a little cash to cover that as that would be harder to finance.

Bottom line is, if you can get a killer financing rate, and can easily make the payments, there is no reason not to finance a large purchase such as a vehicle (especially one that holds value as well as the FD)

 

I financed my current FD though a local credit union. Sure I would live liked to pay cash for it, but hey, I'm a full-time student with a full-time job, and I don't have $20k floating around at any given time.

I put about 1/2 up front and financed the rest. Only a few more payments and it's paid off!

 

actually mine is a credit union not sure if they are the same as a bank but i bought my car at the end of 08 without a problem i'm only 21 and i was working at kroger at the time lol.

 

wow my loan is credit union at 8% got it june of 09 for 1994 base model

 

I financed mine through a federal credit union. Got a sweet deal because I was a new customer. Going to be paid off in August. That being said, if you're financing because you can't swallow the expense of buying it outright I would avoid the 3rd gen for now. The paranoia that you can't afford to break it is not worth the pleasure of driving it.

 

i used my scholarship

 

I personally would try to avoid financing if possible, because I cant imagine having to fix a high performance 17 year old car, maintain it, and then on top of all that have a monthly payment too. That'd be overwhelming

 

^ sure is overwhelming, but I don't give a ****. Most places won't let you finance an FD anymore. I got in before the deadline. My dream car has helped me build a respectable credit score for my age.

 

According to "wealthy people" (AKA boring and usually unhappy people), you never, ever, ever borrow money to purchase a depreciating asset. Even if your car is holding or slowly increasing in value, you're still paying insurance and spending on maintenance.

Of course, by the time most people are in the financial position to purchase according to "wealthy people" rules, they're life has past them by and they would've drove a POS through their glory years.

I can relate to both sides of the discussion, but I'd still never spend more than 10% of my monthly take-home pay on a car payment. Most of the country spends more than that, of course, most of the country has negative net worth. I'm curious as to what percentage of income the average FD owner is spending or how much money they've spent relative to net worth. I suppose I could start a thread in the lounge and only use ratios or percentages so that people don't have to explicitly state their income and/or net worth.

 

You don't have to be a wealthy person to buy an expensive car with cash and pay it off right away. You just need to save money for a long time, maby a year or 2 years depending on the price of the FD. Then again with a bad economy this statement may no longer be true.

I remember watching a documentary on how the Chinese will save their money for 3 or 4 years $15-20,000 and buy a brand new car with cash, but idk if I could wait that long that'd require a LOT of patience haha

 

I financed mine a year and a half ago through a local credit union. Don't remember the rate but I did it without a problem.

 

I will have to check this out.

 

Just make sure you have DD if your doing it on a loan . . .

 

This.

It would be soo stupid to be paying for a car you cant drive and not even having a backup car to use.

So many people fall into that trap.

 

my wife and i currently have 3 cars, so i think im good. they arent all pretty but the all run well. and my father in law damn near has a used car lot, the dumb thing is none of the cars are for sale. lol

 

A credit union will probably do it for you.

I was in the same situation. I had the cash on hand to buy it, but I didn't want to spend it all at once.

I got my bank to give me a secured loan. Basically, I put enough money into a CD to pay for the loan, and they gave me the loan for the CD interest rate plus only 0.25%

It's was kind of a crazy thing to do, but it forces me to make payments while I get to keep my savings. If I had just bought the car with my savings, I might have ended up blowing the money instead of putting it back into savings every month. Plus, I needed to build some credit anyways.