How do people afford...

m4a1mustang · 07-18-2009, 02:13 PM

Exactly.

Most people you see doing this are doing it to their fun car. They just have plenty of cash on the side.

This is my DD, so it's bolt-ons only for me. And I'd never take a loan out to finance any mods... it's just a waste of money.

Modshack · 07-18-2009, 02:20 PM

Don't do it! It'll be a downward spiral from there. A good friend just had to sell his Prized Mustang because he got in over his head. Used a Home equity loan to finance his Supercharger. Car's gone, He's still got the loan.. bad way to go especially now since the house is worth less than he owes on it..

.

I won't get into the "I want it now, We're the entitlement generation" thing as it may not describe you at all, but if you can't afford to pay for it outright you probably shouldn't be doing it. Times get tough and you need to sell that $25K worth of stuff, it may only be worth $5K...

m4a1mustang · 07-18-2009, 02:32 PM

Quote:

Originally Posted by Modshack

Don't do it! It'll be a downward spiral from there. A good friend just had to sell his Prized Mustang because he got in over his head. Used a Home equity loan to finance his Supercharger. Car's gone, He's still got the loan.. bad way to go especially now since the house is worth less than he owes on it..

.

I won't get into the "I want it now, We're the entitlement generation" thing as it may not describe you at all, but if you can't afford to pay for it outright you probably shouldn't be doing it. Times get tough and you need to sell that $25K worth of stuff, it may only be worth $5K...

Exactly. There are things that are fine to finance... like a home or a car. But anything else could really screw you up financially.

Spikuh · 07-18-2009, 02:48 PM

If you are having to finance the mods on your car, you should have bought a cheaper car.

frost · 07-18-2009, 02:57 PM

Quote:

Originally Posted by Modshack

Don't do it! It'll be a downward spiral from there. A good friend just had to sell his Prized Mustang because he got in over his head. Used a Home equity loan to finance his Supercharger. Car's gone, He's still got the loan.. bad way to go especially now since the house is worth less than he owes on it..

.

I won't get into the "I want it now, We're the entitlement generation" thing as it may not describe you at all, but if you can't afford to pay for it outright you probably shouldn't be doing it. Times get tough and you need to sell that $25K worth of stuff, it may only be worth $5K...

Nail on the head. Most financial experts would say that even financing a car is not a good idea, much less specific mods for a car. That's a good way to find yourself in real trouble, real quick.

m4a1mustang · 07-18-2009, 03:05 PM

Quote:

Originally Posted by frost

Nail on the head. Most financial experts would say that even financing a car is not a good idea, much less specific mods for a car. That's a good way to find yourself in real trouble, real quick.

Financing a car is totally fine if you need it. The only issue we financial experts have with it is depreciation. There's risk involved so that's why GAP insurance or a large down payment is a good idea when buying a car. If you can stay above water with your loan you are totally fine.

frost · 07-18-2009, 03:18 PM

Quote:

Originally Posted by m4a1mustang

Financing a car is totally fine if you need it. The only issue we financial experts have with it is depreciation. There's risk involved so that's why GAP insurance or a large down payment is a good idea when buying a car. If you can stay above water with your loan you are totally fine.

Rapid depreciation

What's the rule on downpayment? Isn't it something like, 15-20%?
I think financing is okay if done right, but as with all credit, people abuse it. As we have seen in other threads, we have kids in here living with their parents purchasing Zs. Many better things to spend money on than a new car.

Sardis · 07-19-2009, 05:48 AM

As a Fin Adviser, please DO NOT finance any modifications to your vehicle. If I was a foaming at the mouth old fin adv with a pocket protector, I would be telling you financing a depreciating asset such as a car is a bad investment, but live the dream

The car has some value, even though it will always be in a state of depreciation. Don't do things to this car that will make it deprecate it even quicker, if you don't pay out of pocket.

Last thing you want to do is end up paying for a car + modifications long after the car is gone IE Repo/Loan/Etc..

07-18-2009, 02:13 PM	#1 (permalink)
m4a1mustang A True Z Fanatic Join Date: Feb 2009 Location: Northern VA Posts: 55,385 Drives: on two wheels Rep Power: 6964	Exactly. Most people you see doing this are doing it to their fun car. They just have plenty of cash on the side. This is my DD, so it's bolt-ons only for me. And I'd never take a loan out to finance any mods... it's just a waste of money. __________________ - Steve Zs & Coffee - Saturdays at 10AM in Fairfax, VA and Columbia, MD (Click the banner!) LIKE us on Facebook!

07-18-2009, 02:20 PM	#2 (permalink)
Modshack A True Z Fanatic Join Date: Mar 2009 Location: Greenville NC Posts: 2,883 Drives: 370Z Sport Rep Power: 978	Don't do it! It'll be a downward spiral from there. A good friend just had to sell his Prized Mustang because he got in over his head. Used a Home equity loan to finance his Supercharger. Car's gone, He's still got the loan.. bad way to go especially now since the house is worth less than he owes on it... I won't get into the "I want it now, We're the entitlement generation" thing as it may not describe you at all, but if you can't afford to pay for it outright you probably shouldn't be doing it. Times get tough and you need to sell that $25K worth of stuff, it may only be worth $5K... __________________ Steal my car! (SOLD)...Now Porsche Cayman S Oil Cooler DIY: Here!

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07-18-2009, 02:48 PM	#4 (permalink)
Spikuh A True Z Fanatic Join Date: Jul 2009 Location: The Ark Posts: 2,357 Drives: '09 370z Rep Power: 22	If you are having to finance the mods on your car, you should have bought a cheaper car.

07-19-2009, 05:48 AM	#8 (permalink)
Sardis Base Member Join Date: Apr 2009 Location: CA Posts: 72 Drives: EX Z Owner Rep Power: 18	As a Fin Adviser, please DO NOT finance any modifications to your vehicle. If I was a foaming at the mouth old fin adv with a pocket protector, I would be telling you financing a depreciating asset such as a car is a bad investment, but live the dream The car has some value, even though it will always be in a state of depreciation. Don't do things to this car that will make it deprecate it even quicker, if you don't pay out of pocket. Last thing you want to do is end up paying for a car + modifications long after the car is gone IE Repo/Loan/Etc..