Just wanted to ask a question that has always confused me. How would you buy an older used car that costs a lot of money besides paying in cash? I was told that banks won't finance a car no matter how much it costs if its older than 10 years or something like that. How would you buy, say, a 91 NSX then? Would you be forced to shell out $20,000+ in cash just like that?

What I'm wondering is, are there any ways to finance an older used car like an NSX? I'm just using it as an example, because I'm actually looking to get a 91-95 MR2 Turbo for around $4000-$6000 and I don't have that full amount just yet.

 

A lot depends on your credit. You can get an older car financed if you put a pretty big down payment on it....30% or so. Otherwise you drive something cheaper while you save up your pennies.

 

Lot's of places will finance a used car... like Capital One/People First:

http://www.capitaloneautofinance.com

 

Personally, I would think its wise to pay cash, but on the other hand I know of many collectors that purchase an expensive used car via a credit line. A credit line is in some ways a useful tool as it requires an interest only payment. Some collectors have a tremendous amount of equity in their businesses, homes, and investments and have no trouble securing a line of credit for several hundred thousand dollars. At times they purchase a rare collectable, drive it for a year or two only paying the interest charges, and then sell the car usually recapturing the interest charges. In many instances even more so. It may not apply directly in your case, but this happens more often than one would think.

Terry

 

:wise: That is the way it always should be.

 

Some folks don't get approved even with a new(er) car just because of bad credit ratings. Others just walk in, say that they found a car they want and need a loan and get the money right away. It may not necesarily be a "car" loan, but if they feel they can lend you the money, they will. It depends on your relationship with your bank or credit union. Keep in mind that a car is the worst investment you can ever make, except of course some really collectable ones that do appreciate in value.

Also, if you are in the market for an older car, do make sure that you can have access to parts for that particular model. A older nice, sleek looking Porsche, for example, if it seems as a "great deal" may not be so if your water pump goes and you can't find the part for it. The "sleek" car may be sitting in your driveway indefinitely.