Classic Car Finance Options

[smally289]

Hey guys, mid life crisis time! I have found a toy that I want and need finance to get it. Basic story - earn relatively good coin, lots of assets and a few overheads but no cash in the bank.
Who offers decent finance for older cars?

[nstg8a]

id say personal loan from your bank will be your best bet.

[GTPete]

Home equity, would be your best bet, personel loan for older cars will be regarded as unsecured so 13- 14% rates apply.

[GTPete]

Home equity, would be your best bet, personel loan for older cars will be regarded as unsecured so 13- 14% rates apply.

What car have you found?

[pottery beige]

Originally Posted by GTPete

Home equity, would be your best bet, personel loan for older cars will be regarded as unsecured so 13- 14% rates apply.

What car have you found?

^^^ what he said....

http://www.youtube.com/watch?v=Z2dEM2AIwi4

[nstg8a]

home equity only works out cheaper if you actually pay it off in the same sort of time frame as a personal loan.
ive seen heaps of people draw on their equity but not increase their payments by any significant amount.
false economy.

[pottery beige]

can do a mix and match.. part equity and part loan.. depending on what sort of $$$$ youre talking.....

[GTPete]

The only other way I know around it would be if you owned a late model car outright. You could borrow on a secured personel loan against the value of your late model car and use that money to fund your classic car purchase. Doing it this way you could source interest rates around 9%.

[smally289]

There's a '66 Mustang calling my name. I've always wanted one, everything else has been a compromise. At 44, I feel the time is right to say stuff it, get one and be done with it.
Might look into the equity thing, have a good amount in an investment property in Adelaide.

[GTPete]

Good stuff, its a good time to buy, home equity loan and pay it off within 5 - 7 years like nstg8a mentioned.

[davocol]

If you can pay it off in 15 months, put in on a credit card and then do a balance transfer to someone like a citibank http://citibank.com.au/tv/ 1.9% for 15 months.

If they wont let you pay credit use a visa debit and pay that off instead.

Just make sure you pay it off in time or they will hit you with the cash rate. Failing that peoples choice had a great deal last time I looked.

[smally289]

30k on a credit card scares me!

[Murph-51]

Originally Posted by smally351

30k on a credit card scares me!

awwwww c'mon wheres your sense of adventure its only money
pay it off in 15 month at 1.9% and you'd be laughing literally all the way to the bank!!!
The repayments would be huge though

[nuthin' fancy]

Originally Posted by smally351

There's a '66 Mustang calling my name. I've always wanted one, everything else has been a compromise. At 44, I feel the time is right to say stuff it, get one and be done with it.
Might look into the equity thing, have a good amount in an investment property in Adelaide.

If the available amount is redraw, you should have had an offset account, if you are increasing your debt (as opposed to redawing additional payments), perhaps you should wait until you are spending your own money rather than wasting equity in property.

[smally289]

Good advice, haven't got access to that much as a redraw. Might have to pull my head in for a couple of years - BORING!!

[Iggypoppin']

Sell investment property, use profit to buy the car, end up with no debt and the car? Only if you want to give up the IP though!

[smally289]

Originally Posted by Iggypoppin'

Sell investment property, use profit to buy the car, end up with no debt and the car? Only if you want to give up the IP though!

I like your thinking. Not sure if I would stay married if I did that. Win / win situation really!
If things go the way we plan (ie: kids move out) then we will be moving into the investment property in 5 years, so I'd better hang onto it. Mind you, if the other plan works out (6 numbers on a Sat night), then expect to see multiple of everything - cars, houses and women!!

[cedric]

i would use equity. or see your accountant and see if your self managed super fund can invest in classic motor vehicles !!!!!!!!!!!!

[davenl5l]

Originally Posted by smally351

I like your thinking. Not sure if I would stay married if I did that. Win / win situation really!
If things go the way we plan (ie: kids move out) then we will be moving into the investment property in 5 years, so I'd better hang onto it. Mind you, if the other plan works out (6 numbers on a Sat night), then expect to see multiple of everything - cars, houses and women!!

kids move out

[smally289]

Originally Posted by davenl5l

kids move out

Yeah, prob more chance of the numbers coming up!