custom car values?

In March my wife and I are paying her car off 18 months early. We have been planning on buying a hot-rod toy car when this happens. A close friend of mine is selling us his 1923 Ford T-bucket because he just bought a model A. We are going to have to finance the purchase. Checking with two local credit unions we are members of, we are finding that the interest rate is 6% based on our credit score of 780. One credit union will finance 80% of the value and the other one, 90%.

The curiosity that I have is how do they determine the value? Both mentioned blue book. The car is custom made. My friend (the seller) had the car recentley appraised by a collector/antique car association.

My main questions are:

1) Is 6% a decent rate for an antique vehicle/ used car?
2) will the lender recognize the appraisal?
3) should I shop for a better rate?


Any insight would be appreciated!


DL

What I would do is take out a personal loan for the amount, that is what I did for a few cars I have had. I would also shop around to see if there is a better rate. That 6% might very well be the best rate though. The truck I just bought the lowest interest rate was 6.89% it had went down a lot for 4 years ago when I bought a car it was 8.99%.

hometownhero,

Thanks for the reply. It looks like a personal loan may be the way to go. I'm still checking to see if the lending institution will acknowledge the appraisal. The bad thing that I hear second hand is that if the lender goes by Blue-book, they may fing that a Model T in good condition is worth only $1,000 and will lend 80% of that. Nevermind that it is custom built and high performance.



DL

No suggestion on the loan, but congratulations on the new toy!

Handstiched seats in the future? I look forward to seeing some photos.

Dustinl said:

hometownhero,

Thanks for the reply. It looks like a personal loan may be the way to go. I'm still checking to see if the lending institution will acknowledge the appraisal. The bad thing that I hear second hand is that if the lender goes by Blue-book, they may fing that a Model T in good condition is worth only $1,000 and will lend 80% of that. Nevermind that it is custom built and high performance.



DL

Click to expand...

Id like to see a restored model T sell for $1000 when that day comes hell will freeze over. There was one for sale here at a car show. It was in nice shape defiantly not mint condition and he was asking $14,500

hometownhero said:

Id like to see a restored model T sell for $1000 when that day comes hell will freeze over. There was one for sale here at a car show. It was in nice shape defiantly not mint condition and he was asking $14,500

Click to expand...

I saw one on craigslist yesterday for 24k. It was pretty nice.



DL

I am in the car business on the finance side, I may be able to finally add some information after getting so much from you folks up to now

Depending on the state you live in, the lender is likely to use NADA, Galves, or Manheim (aka BlackBook) since those sources are active in the wholesale side of the business whereas kbb often combines information from those sources and other to get their values.

I advise my clients to obtain personal loans on odd items like this one or any vehicles that are more then 7 years old. Without getting to mired in details, 6.89 for a collector car seems pretty good. A lot of conventional banks I work with are between 3.5 and 5 percent on new cars, typically rates raise with the age of the car.

I hope that helps some, if I can provide any other information please let me know.

Got safety tubes, but I ain't scared.
The brakes are good, tires fair.

[YOUTUBE]http://www.youtube.com/watch?v=F9QpDvhshOQ[/YOUTUBE]

slugg77 said:

I am in the car business on the finance side, I may be able to finally add some information after getting so much from you folks up to now

Depending on the state you live in, the lender is likely to use NADA, Galves, or Manheim (aka BlackBook) since those sources are active in the wholesale side of the business whereas kbb often combines information from those sources and other to get their values.

I advise my clients to obtain personal loans on odd items like this one or any vehicles that are more then 7 years old. Without getting to mired in details, 6.89 for a collector car seems pretty good. A lot of conventional banks I work with are between 3.5 and 5 percent on new cars, typically rates raise with the age of the car.

I hope that helps some, if I can provide any other information please let me know.

Click to expand...

That does help. Thanks. I am a little worried about a personal loan for the amount of the car, though. We have a high credit score around 780 but we also have debt. We bought our home just a little over a year ago and will still have one vehicle payment. We are in Texas. The seller told me today that the back will use the certified appraisal on the car. I suppose I just need to call the lending institution back and verify that.

Again, thank you for your help!


DL

ouch said:

Got safety tubes, but I ain't scared.
The brakes are good, tires fair.

[YOUTUBE]http://www.youtube.com/watch?v=F9QpDvhshOQ[/YOUTUBE]

Click to expand...

The Reverend Horton Heat w/ Hot Rod Walt- Rock this Joint
[YOUTUBE]http://www.youtube.com/watch?v=jQEvqkgWtmg[/YOUTUBE]


Oops, wrong thead!


Thanks for the link, Ouch!


DL

Heck, no problem at all, happy to help. If the bank will honor the appraisal, that is awesome. Enjoy your new toy!