How do people afford...

OnCallZ

What do you think caused an economical implosion? (Well it was a combination of things) but mostly it was people who made financially absurd decisions; financing a TT kit would be one of those decisions.

m4a1mustang

That's a very foolish proposition. You end up putting yourself in a dangerous situation due to the amount of risk you have to take on in order to achieve an annualized return of 12% or greater to beat the loan's interest rate and could find yourself losing your money with one bad trade. Those of us in the business learn pretty quickly that no one is bigger than the market -- so don't think it's definitive that you're going to end up in the good.

You seem to be indicating that you make good money, and that you have the money on hand to buy what you wish. If that's the case, just buy it outright. Then you don't have to worry about getting burned trying to out-earn what you're spending on the borrowed money. It's just not worth it.

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FricFrac

LOL - reminds me of a story I just heard about a friend's 350Z he bought. Only had 18,000 miles on it and it seemed like a good deal. Anyhow its been burning about a liter of oil a month. He's cleaning the car out and decides after two years to clean under the seats - finds a receipt to remove a super charger on the car Anyhow he was planing on building a Stroker now I guess that's a have too....

Point is you start straying from stock for HP you can't use on the street be prepared to spend it all over again....

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Roo

I wouldn't even finance a car, if I can't pay cash for a toy I don't buy it.

Robert_Nash

Amen

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Roo

whoa whoa whoa, so you trade stocks yet your asking us if you should get a loan at 10-13% to get mods for your car?

Out of curiosity what are some stocks your invested at right now and or looking at? How much is in your portfolio? Day trade?

cptspeed

wtf! don't listen to anyone. Do what makes you happy. spend some, save some. Its not rocket science. Live life to the fullest! Who wants to work all their life saving money to one day be able to pay cash for their car. You'll be too old to get in and out of it by then.

Robert_Nash

I see "welcome to Wal-Mart" or "would you like fries with that" in your retirement future.

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Roo

Wow, this is exactly why we are in this financial crisis. I would get use to saying 'Would you like fries with that'.....

BTW I am only 27. I own 2 houses, 3 cars all paid off, motorcycle paid off, boat paid off and carry zero debt except the mortgage on my second house and I reside in Southern California.

Junior370z

Your point? You bragging or something? I finance my **** but surely am not living month to month. Your pretty much saying most of us in the U.S. Are lower than you for financing or something.

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Roo

Apparently you missed the entire point of that post, good job reading between the lines.

I never said its bad to finance a car I was rebutting his statement of 'You'll be too old to get in and out of it by then'.

theDreamer

We are in this financial crisis because the government went and forced banks to give bad loans on homes. Taking a loan on things is NOT bad if you understand the factors involved. Such as with a car, it will depreciate over time, a home will slowly increase yet you must invest into it.

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GMZ

Agree with your premise but not your delivery. Stinks of bragging to me.

Big deal, I financed my Z. I have enough stashed away to buy it cash (or pay it off if I need to), but my rate of return on my stash has so far been +25% which even factoring in interest on the Z is +20%. It made more sense to finance for me. Ever think of that? Thats how banks make money, borrowing short and lending long + pocketing the difference. Works the same for us, the smart ones who dont over extend themselves anyway.

ETA: I see no recovery in the next 5 years and things actually getting worse, devolving into societal breakdown.

ZKindaGuy

Given the younger age bracket of most tuners I am certain they don't pay for it up front. And if they do its only because mommy and daddy are somehow helping them with most of the basic necessities such as food, rent, insurance, school and etc.

I also doubt that the majority of that same age bracket is saving up the money to pay for it because though they may be saving the money up for the modifications they are surely running up their credit cards on other thiongs they would normally use cash to pay for.

As for the older segments if they are modding it more than likely is by saving up and doing a little here and a little there though blower and turbo mods are realy not possible that way due to the repeated tuning costs that add up when doing it piecemeal. More than likely they are using their credit power to make the mods and then robbing Peter to pay Paul for 3 or 4 years to pay it off. And by that time they have spent enough on interest to have done the mods twice over.

I doubt if loans are being taken unless it is done against their retirement 401K investments. No bank is going to loan money on an asset that is viewed by them as a liability rather than an asset. Particularly after the wall-stree and bank debacle era we just experienced last year.

So I would say 99% of those doing the high-cost mods are borrowing out their azz in some fashion and ther other 1% can actually afford it without a problem.

And anyone who claims they can easily make such mods are just plain lying out the ying-yang.

qnsblvd

Then when you get in over your head, just declare bankruptcy and start over. Nowadays, I'd be real surprised if banks were tripping over themselves to hand out $15,000 unsecured personal loans and if they do, the rates are 15-20%. Just pay cash. Or put it on your card, get the points, and pay the balance off in full at the end of the month.