Loan to Purchase Musclecar

[owners2]

Does anyone know a Lender to help with Financing for a Musclecar.

[COPO]

Never used them, but I recall they were an advertiser in Hemmings for many years.

https://www.jjbest.com/auto-finance/Finance-Classic-Cars.aspx

[RPOLS3]

Mecum advertises this group on their website


https://www.lightstream.com/mecum?cid=LP-DSK-B-classic_car-B-ME-fact=15104&subid=header&fact=15104&isredirect=True

[tom406]

JJ Best has been around forever, but the people I’ve seen use them were never sure if the money was a”go” until the last minute. Putnam Leasing could be an option for you. Best bets are credit unions you have access to. Any lender is mostly concerned about over lending (like loaning $200k against a fake L88) and how hard it is to liquidate if they have to repossess (towing and wholesaling 3 year old Camrys is easy- grabbing your 409 Bel Air and marketing it, not so much.) Bringing a good third party appraisal that authenticates the cars pedigree and explains the market a bit might help a lender make a decision to say yes. When in doubt, they say no.

[Canuck]

There is a few guys in New Jersey that handle loans. There names are Tony and Big Phil,they hang out at the Badda Bing!

[olredalert]

----If you don't already have a home equity loan it may be a good choice. The interest is deductible still (I think) and generally all you have to do is pay the interest monthly. I have done this in the past when I wanted to buy a car to sell or knew that cash was coming in soon......Bill S

[Sean]

Mecum advertises this group on their website


https://www.lightstream.com/mecum?cid=LP-DSK-B-classic_car-B-ME-fact=15104&subid=header&fact=15104&isredirect=True

I used them several years ago very easy to deal with good business.

[DW31S]

There is a few guys in New Jersey that handle loans. There names are Tony and Big Phil,they hang out at the Badda Bing!
How YOU doin'?

[the427king]

If you have a 401K use the loan feature and pay yourself back the interest and you can do it at around 4% right now. best of both worlds. Can only boorrow 50K or half of your balance,which ever is lower ...

[quick-bowtie]

Woodside Credit is big into collector car loans and super easy to work with. I just sold a car last week where the owner used Woodside.

[Charley Lillard]

Woodside is always present at Barrett-Jackson.

[owners2]

Thanks for the help guys. one of my employees is trying to get finance to purchase my 68 SS 396 Camaro & his bank says its to old.

[WILMASBOYL78]

my banker is a real car guy...he started the collector car program at his bank...mainly offered to good customers, but they may do an outside deal?

contact me offline if you want more info..

-wilma

[YENKO DEUCE REGISTRY]

----If you don't already have a home equity loan it may be a good choice. The interest is deductible still (I think) and generally all you have to do is pay the interest monthly. I have done this in the past when I wanted to buy a car to sell or knew that cash was coming in soon......Bill S

HELOC % is no longer deductible if used for a car purchase, only if used for the purchase of a home or home repairs - how they plan to enforce this is unclear. I'd find a car being sold by a home construction contractor...... but that's just the view from a CPA! :grin:

"HELOCs and second mortgages will no longer be deductible if the loan proceeds are used to pay for personal items, including college tuition, vacations, credit card debt, student loan debt, a vehicle or clothing; the interest paid on that amount will not be deductible."

[YENKO DEUCE REGISTRY]

If you have a 401K use the loan feature and pay yourself back the interest and you can do it at around 4% right now. best of both worlds. Can only boorrow 50K or half of your balance,which ever is lower ...

While this can be a tempting option, the long term consequences can add up.... To make this work you should ensure that the appreciation of the car you purchase + the 4% you pay back to yourself (I'm not sure if you actually get all of that, but....) is greater than the gain you forfeit from the 401k fund itself. Also, not all plan administrators allow for 401k loans, so check before assuming. Finally, since 401k contributions are made on a pre-tax basis, loans greater than $50k and/or not repaid within 5 years will trigger a tax impact - at your current income bracket rate!! So, make sure you think this one through very thoroughly.....


"401(k) Loan Repayment
The IRS will consider your 401(k) loan to be a reportable, taxable distribution unless you meet either of these conditions:

You repay the loan within five years.
You use the proceeds to buy or build your primary residence.

Even if you satisfy either of these two requirements, the IRS will treat your total loan balance that exceeds the lesser of $50,000 or half the value (but not less than $10,000) of your vested account balance as a taxable distribution. If you’ve already taken a loan, you’ll have to reduce the $50,000 ceiling to the extent of the highest outstanding loan balance during the one year period ending on the day before the new loan minus the outstanding balance on the date of the new loan."

[the427king]

And if you are under 59 1/2 you will also be subject to 10% penalty on top of your tax bracket on any balance considered a taxable distribution .........however, paying yourself 4% interest instead of a loan company 10 or 12% is a big big positive...your payments are a lot lower, you can make payments quarterly instead of monthly,and thats a 14 to 16 % swing that goes in your pocket