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Discussion Starter · #1 ·
Hello all! My husband and I are looking to purchase a Cobra replica and we're trying to figure out what our financing options are. The car was built by a friend and he is looking to sell it. We are going to check with my credit union about our options, but we thought we'd check on here to see if any of you had suggestions on where we might be able to get financing. We're also checking into insurance as well, so if you have any ideas, please let me know! Thanks!
 

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A Home Equity is a good option with low rates and tax deductable interest. Only downside is appraisal fee and some closing cost. You can do a revolving Home Equity line of credit that just sits there for when or if you need it.
 

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I honestly would never consider financing a Cobra, a Race Car or any other "Toy or Hobby Car". Not trying to be critical but but making payments on an un-pratical non daily driver just doesnt make sense to me. Just my 2-cents
 

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Ask yourself if you would finance a $20,000 watch. You will get more use and benefit out of the watch.
Now do you think it is a fiscally responsible action to finance one of these cars?

My opinion (and worth every cent you are paying for it) is that unless you can get a no interest loan, do not borrow money in order to obtain one of these toys.
 

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Look at how many people finance boats, bikes, planes,"summer homes". None of which are practical, but I think we should enjoy life while your here. You can't take it with you.
With that said, I think South Dakobra's suggestion is the way to go.
 

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Originally posted by Lex:
I honestly would never consider financing a Cobra, a Race Car or any other "Toy or Hobby Car". Not trying to be critical but but making payments on an un-pratical non daily driver just doesnt make sense to me. Just my 2-cents
I couldnt agree more,sell a toy to buy a toy is the best way,get a loan to buy a house not a toy.
 

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Guys,

I mean this in only the best way but...

She's asking how to finance a car. Not if you think she should.


CobraGirl, welcome to the forum!

If it's finished, it's easier because a bank 'may' loan the money.

A home equity or a loan against your 401k are two good options if you're in that position.

Home equity - tax deductable interest.
401k loan - you pay yourself the interest. (win-win)

Hope this helps!

R :D
 

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I am not going do deny that financing a "toy" is probably not the best route to go but hey you only live once.

I made the decision to partially finance one of these specacular machines through 0% cc's and then once the build is done either refi using a vehicle loan or bounce to another 0% cc. I am "justifying" this decision in that I will be using this as a daily driver, will not have any payments on another vehicle, I just quit smoking, I graduated college with no debt and I want my toy and I want it now lol.

I would love to hear how others have accomplished this task through financing. I do however agree that this is probably not the best way to go about it.
 

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I'm with SD. Home Equity loans make sense for many people. It may allow you to deduct some interest epense and is often at a lower rate than other loans.

I'm not sure why some people feel you shouldn't finance "toys". I feel it's more important to have an overall balance of debt, equity, investment and income. I know people who carry (what I feel) way to much debt on those necessary things like a daily driver and home. If you pay cash for everything, you can't invest as much.
 

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I'm Financing with a home eqity loan, 5yr fixed. I took out enough to pay off my current car loan and have about half the cost of the kit in cash. My payments will stay about the same, so it seems like zero cost money in my budget, and the interest is tax deductible. It works for me......
 

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Discussion Starter · #12 ·
Well, didn't know I was gonna get a lecture on finances. I appreciate the advice and completely understand the don't finance the toys idea, but my husband and I are intelligent, educated people and are very good with our finances and it is our prerogative to finance a "toy" if we choose. Thank you for the advice anyway, even though I was simply asking of known options for financing one these cars so we could look into it. ChevyCobra - Randy J. Thanks for the support. This is a dream car for us and we have the opportunity to get a beautiful, well built vehicle for a great price. I'll definitely check into the info on Factory Five's website and home equity idea, thanks!
 

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Your credit union should be able to do this, you will need to get an apprisal of the value. I think they may require a down payment as it you were buying a new car.
Good luck
 

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Welcome,
What Randy says. Have fun now!!!

cheers

c
 

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As a direct answer to your question, if you have a home, I also think home equity is the way to go. There are also a few companies that do financing too. I think Hagerty is now doing it.

As for whether it should be done, I couldn't disagree more with those who say you shouldn't do it if you can't pay all cash. There are tons of people who don't have $30,000+ laying around, but would have no problem affording a monthly payment. It's a personal decision everyone has to make. When I bought mine, I didn't have the cash laying around to pay for the whole thing. However, after paying all my monthly bills, putting money aside for emergencies, and investing, I had some left over to play with. If cars are my hobby and I can afford to make a payment, why not? Had the car for 4 years, enjoyed the hell out of it and got much of my money back when I sold it. I'm going to get another Cobra again after my family life settles in more, and I can assure you I won't have the cash to pay for the whole thing!

Steve
 

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redhotcobragirl:
Welcome!

I can tell you what worked for me. Called up my credit card company and told them I wanted 17K at 5% fixed for five years. As far as the "if you should" I don't know, and would not tell someone else, but I do know that you CAN sell these things. Yes, most of the time at a loss. But, a friend of mine put it to me this way: "So, you are making monthly payments at 5% on a DREAM. Cool."

Every question I have ever posted has been answered on this forum. I sold a part to someone on this forum and he gave me 15 bucks more than I asked "because it was the fair thing to do."

WOW! The people on this forum are how people should be.

Welcome. I hope you pull the trigger soon. There is NOTHING like the day when Stewart Transport pulls up.

NOTHING.
 

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Since your looking at an already completed car. Keep in mind it may need to have already gone thru the inspection or titleing process if wanting to get a more traditional auto loan like thru a cretid union or such. Wonder how this would work for how the lender would put a worth on the car? Appraisal? Thinking home equit would be easyest and lowwest rates. Hope this works out and you drive away in your cobra. You do understand pics need to be posted once you have your car?
 

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redhotcobragirl

I will be using Home Equity (once my home is actually built) the low tax deductible interest is the way to go for me.

As for all these people lecturing about” financing one of these toys” I guess that would mean they all have there homes paid for in full. Otherwise how could they justify putting $20k out to buy a “toy” when according to them $20k would be better spent paying off a home loan. IF they have a mortgage they should sell you or I their Cobra and use the $$ to pay towards their loan. THEN once they have the "home fully paid off" they can save the $$ up again they can go pay cash for there Cobras.

Borrowed money is borrowed money. How one rationalizes it changes nothing!
 

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Cobragirl,

You're very welcome.

It looks like you have some good answers to your question!

A tangent though and only because you're new here..

:D

If the car you're considering is already registered and on the road, outstanding. If it hasn't been registered for the street yet, there is some more due diligence you should do to make sure there are no surprises at the DMV window. This forum can help!

Also, like was already stated, we have a rule around here... "No pictures, didn't happen!" That means that when your new toy is in the garage, we are going to require pictures!

R :D
 
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