HelpMeHelpU

I believe rates at Woodside and their ilk are very high, surely >6%.

I don't believe there's anything wrong with financing a Porsche at low interest rates as long as you have sufficient and reliable cash flow to support it. I would rather keep my cash working for me at returns that far exceed the cost of the funds. Why do you think Apple and MSFT borrow money all the time, even when they have huge cash balances?

As for lenders for classic Porsches, the two best choices are XCEL FCU, which advertises in Panorama magazine and has very competitive rates (certainly below 4%), and Lightstream. Sometimes for older cars XCEL requires an appraisal, which is very easy to obtain and cheap. PenFed is also a very good auto lender I have used many times. (At least two times in the past I "sold" cars to Penfed at very low rates for more than I could have sold the cars in the open market. This means they lent me more money at rates of 0.9% - 1.49% than I could have obtained by selling the car myself. In other words, I sold it to myself!) One benefit of Lightstream is it's an unsecured loan, meaning they don't put a lien on the title, which creates some flexibility and reduces hassles.

One of the nice things about working with XCEL is that it's a very small organization and I have the direct-dial numbers of the lady who handles title work, the loan officer, and my favorite customer service rep.

There have also been times when I didn't have $100k liquid, so I borrowed the money and ended up selling the car months later for 15%-20% more than I paid for it, even though I didn't buy with the intent to sell. Think of ROIE on those deals.

Feel free to reach out if you have any questions.

Auto_Werks 3.6

It *can be an unsecured loan at their discretion. When I bought my 2010 GT3 I originally financed $65k, and the car book value was $120k. I had 800 credit and no other lines open other than a small revolving amount, and they would not do the GT3 loan unsecured. If I remember correctly they look at your investments, etc, and I'm guessing there are many wealthier individuals than myself who have better portfolios, and maybe they can get the unsecured loans on larger assets. As it turned out, I didn't really care if it was secured or not, but I got a better rate from my local small town bank. The face to face transaction was easier for me, since it was an out of state purchase etc. I ended up pulling some money out of my investment accounts to pay off the car right before we had the huge dip in the markets. I was getting nervous that Trump couldn't keep things on "full boil" for much longer. I was surprised by the quick recovery, but I think we have another dip coming

PRSWILL

I've used Lightstream a couple of times. Unsecured both times and the interest rates are very competitive. Had funding in less than 48 hours from application.

michaelo

Thank God I didn't follow your terrible advice. I have always enjoyed all the toys I have ever wanted and because I financed all of them, I have excellent credit so I can enjoy even more toys.

josephvman

I have no argument against financing under the right circumstances, but if you need a 10+ year loan for anything you can’t live in it’s probably a bad decision. Some of those long-term loans also have pre-payment penalties.

n8kruger

Some follow up:
Hagerty's website lists 4 companies that specialize in financing classic cars. One only does leasing. Of the other three, the best offer was 4.69% over five years for 90% of the purchase price.

With the S&P at an all-time high my preference would be to pay cash.

parkerfe

yep

HelpMeHelpU

XCEL FCU will finance classic Porsches for at least 100 bps less than that rate.

Indiana Jones

I waited (too long) to get my first 911. I am 35, so still fairly young, but I am very conservative financially. To give you an idea, I own commercial real estate, all with no mortgage.

When my 1970 911 popped up, I searched for low rates, but decided to just write a check for the car. Can't stand banks for marginal amounts, but if it were easy enough I may borrow.

I think it makes sense to borrow with little risk (gap coverage) if rates are low though. My personal financial situation re: cash I have, and lack of interest to jump on real estate within the next 6 months made it easy for me to just write a check and get a title in hand, but again no right or wrong.

I will also echo some here that said borrowing money on an old long hood may be a bad idea from the start. Easy to drop $25,000 into them quickly haha. Either way they are so stable as far as cars are concerned, I think it is hard to make a huge mistake either way!

Mark Dreyer

I am buying an 89 Carrera. I inquired with my credit union about financing and was quoted 10% interest. What I’m doing instead, is giving them the title to my paid off 981 Spyder and they are giving me the Carrera purchase $ at 2.10% on a 36 month loan. At 10%, I’d pay cash, but at 2.10%, I’m keeping the $ in the stock market.

cairo94507

I think it is an age thing. I never cared about a car payment when I was young and just starting out in my working life. I knew I would be working and making money. One of the things I learned from my parents was to buy a home as soon as I could. I bought my first home at 22 by selling my Porsche for the down payment- never asked for any help. Not 1 year later I had another Porsche in my garage and have always had at least one for the past 40 years. I have no debt now and that is the best approach for me. My 914-6 is my toy/hobby and when it needs something it does not bother me to pay of parts, etc.

theiceman

im not sure i can believe that .. that has to be wrong ... people going into retirement in 60s and only have a net worth of 221 K ? is that for real ??? that would mean people retiring probably dont own there own home, or if they do they are pretty close to peniless ?? maybe my understanding is wrong...

Auto_Werks 3.6

Too many statistics floating around by "experts" to really know what's going on. Media likes to say that most households would need to borrow money if they had an unexpected $500 expense, and they tout the number of people who are living check to check. You see that with the Coronavirus lockdowns, with people needing rent and car payment assistance. So yeah, I would guess there are a lot of people in their 60s with a 200k net worth.... they probably never get to retire.

theiceman

Gees that's sad ...

I know someone who has two kids sitting at home being paid by the government because there work furloughed. Neither have any bills to pay and get paid by the government to sit at home all day playing video games...
yes they were working ut neither them have food bills, rent .. or car payments.

There has to be a better way ..

Honkity Hank

Source https://dqydj.com/net-worth-by-age-c...united-states/

I think median gives a better view of it, average is higher due to the very wealthy.

The link has a calculator so you can see how the age bracket and net worth falls as a percentile.