ceboyd

so I talked to a dealership sales guy and asked what the scoop is with 993s selling higher in the marketplace than what Kbb states as resale value..

What I was told is that any car 10 years old or older cannot get financed though any bank (not sure how accurate this is) so you are looking at a cash sale transaction (paid in full) deal only so dealerships don't like to take that 'risk' on resale for used older cars.

I had never heard that reasoning before and wonder if it is 'for real' or just a dealership line.

Since we sold Eric's 993 in a day and it was indeed a cash deal, I never ran into any problems or issues with trying to go to a dealership and getting raped on trade-in.

What is interesting, however, is all the 993s this "Victory Auto Sales" dealership in TX seems to buy up (I wonder if they buy for so cheap as well and just mark up $5k to $11k on resale).


For Example: KBB is stating that my 993 is worth about $21k (which we know to be quite a bit off based on market sales -- heck, even ebay hasn't been that low for a 993 recently with higher mileage!)

Spuds993

ceboyd,

I think stated correctly banks typically won't finance a car more than 10 years old, which means your 1996 can be financed, 1995 and older can't. However, there are lenders out there that have old car programs, they use a book called "cars of particular interest" (CPI) or something like that. If the car your buying shows up in this book they will finance it up to %100 of the CPI book value. My lender (a credit union) has this program available and I've used it several times.

Don't forget though that lots of buyers may also be using their home equity line of credit to purchase the car, thereby making the interest deductible for some

tj90

I financed my 1995 last year and ran into the 10 YO line at many banks. Even my CU would not finance it and I did equity line and 2 cars through them. I ended up going thru Capital One - not the most competitive but very easy to work with and made the transaction easy. In retrospect, I guess I could have financed a newer 993 thru a bank at a slightly better interest rate, but I was actually targeting a 95 to avoid potential OBD2/smog hassles (which I just went thru on my other car a few months earlier).

ceboyd

ah.. so it is true then.. (about the 10 year thing).. ICKY

that's just bad news

Phil

To some extent.

There are a few lenders that will lend on older cars, but you have to have perfect credit with a high fico score. The dealerships captive lender will usually make exceptions for "high line" vehicles.

tj90

Why is it bad news? Most guys buying these dont need the financing and if they do, they are willing to take a slight hit on interest rate to find a bank that will finance older sports cars. Remember some banks are more than willing to throw money at guys with good FICO scores.

I financed from a cash flow perspective. The only thing I worry about is if I total the car, I will owe more than insurance will pay out. The KBB value that ins. companies use scare the crap out of me!!!!! I remember my insurance agent was suprised that the cost of ins. was so cheap on the 993.. I thought it was due to the demographic of the driver, but now Im thinking that the value of the car (according to kbb) is so much less than what I paid, that Im only partially insuring the car!!

I wonder if that is another reason banks wont touch older cars. Say you default on the loan. They are going to make a loan on a car that is > than the book value. I can see the guy at the bank - you know the gray hair gentleman in the back with the cigar - nix that idea. "If we finance this deal and 993man defaults on the loan, we wont get all our money out of it when we repossess the car!!!"

Phil

we tend to look at these cars has prized possessions....spending thousands and thousands on "mods"......banks and car dealers just look at them as metal with wheels. Cars have no intrinsic value to banks, ins companies, etc....

ceboyd

that's a bit odd because I pay MORE insurance for my 993 than I do for my 02 Boxster S and the KBB value is HIGHER on the Boxster than on the 993.. go figure

mborkow

i think HP and wheel base play into the calculation of the premium

ceboyd

o.k.

my Boxster S is 250hp and my 993 is 282hp

not that much of a difference IMHO

Bull

A friend owns a high line used car dealership...mostly Porsches, but Ferrari, Aston, etc. also...and has no problem getting financing for his buyers. The better the credit, the lower the rate, but the loans are out there. It all depends on the Charter of the bank in question. BTW, he can't get enough 993s to meet the demand.

jnx

Thats BS {typical dealer talk} about the 10 year thing. If your credit is good the banks will finance just about anything.

mborkow

is the wheel base the same? the other difference is that, theoretically, the 993 could carry 4 people (more injuries to pay out if there is an accident)...i guess we need an actuary to explain all this to us...

tj90

Not sure thats true. Maybe if I had a corporate account and it was a bro deal maybe. I have witnessed the 10 year rule at my CU with a FICO of 750. Not 850, but getting there... The 10YO rule is for the masses. Rules can be broken, but I dont personally know the decision makers.

ceboyd

so I guess that means my score of 764 isn't all that great huh?