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NSX Financing

Joined
1 May 2001
Messages
4
Location
San Antonio, TX USA
Hello All,

I am working on getting an NSX and have been looking at 1991 - 1992 models. However, I am having trouble finding any financial institute that will loan on a car that old. I have looked both online and my local banks.

Does anyone have any suggestions on financing a car of that age?

Thanks,
Gerald Stowers
San Antonio, TX
 
I have a 91 and financed through Premier Auto Finance via the dealership I bought through. I am currently looking into refinancing the car and have looked at JJ Best. DOn't expect a good rate on the intial loan. I am embarassed to say what mine is, but it is well over 10% under 15. Good luck> I would be interested to see what rate you can get.

[This message has been edited by Sig (edited 01 May 2001).]
 
I also financed my 1995, at a ghastly rate of 12.5 (i had buy it now fever), i plan on re-financing soon through PFCU. JJBest will finance at around 10.5 to 11 on 1991's, with fairly easy approval. Give them a try.
 
I would think that as long as the cars purchase price is less than mid book you should beable to get a loan.

I got my '92 for $34K financed thru my credit union.. they told me that the book on it was $37 so it was ok.. hmm.. Oh BTW my rate is 8% at 5 years.
 
I need to join a credit union! Unfortunately, I don't know of any that take Joe Schmoe off the street. Congrats on your loan BTW, 8% is impressive.....at least to me.
 
Hey guys, thanks for the input.

My credit union will give me a loan at close to 8 (well almost, 8.99) but they will only do so on a 1994 or newer. I have been told by everyone but JJBest that 1991 is too old, even though the asking price is below both Kelly and NADA. I even had a local bank say that they won't take anything older than 1997!
 
I financed mine through Star of Texas Credit Union here in Austin. Interest rate less then 8%, and you can finance for up to 6 years.

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92 Red/Blk
 
Straight up through Washington Mutual bank for 72 months at 9.875%. Financed 35k on a 91.

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Todd Arnold
NSXotic.gif

http://www.geocities.com/nsxcessive/index.html
 
You will likely have a difficult time finding a financial institution to write an auto loan for a vehicle more than 4-5 years old. Even if it is a 91-92 NSX.

You might consider a home-equity loan (which is also a good tax deduction) or a 401(k) loan (if that is an option for you).

Just make sure you're not doing something that doesn't make good financial sense. I don't know your personal situation, but you'd be looking at one hell of a car payment for a 10-12 year old car. Doesn't make much sense to me. Go lease a new one if you have that kind of disposable monthly cash flow.

EDR
91 Black/Ivory #3012
 
EDR,

I have thought of just that. However, in my research I have seen that a 2 yr lease is about the same as a 5 yr note on most cars. A 4 year note on a $35k car is about $870, but a 7 year note on a $90k is almost $1500. That is a big difference. I have not seen what a lease on a new NSX is, but I have trouble seeing it less than $1000/month. Have you seen differently?

Thanks for the info!
Gerald
 
Gerald,

You just missed a 4-year lease offer from Acura for $995 for a brand new NSX. Not too far from the $870.

They had this offer last August when I got mine, and I noticed they kept extending its expiration date - I believe it expired 3 days ago.

You may want to keep checking the Acura site for "current offers" to see if they bring it back.
 
Here is my thoughts on a lease, please let me know if I am not seeing it in the correct way.

I can lease a new NSX for $1000/mon for 4 years, at the end I turn it in. The car then costs my $12,000 per year.

I can spend $1,000 on a 1996 (roughly $48,000), keep it for 4 years and sell it for roughly $32,000 (about what a 91/goes for). This only costs me $4000 a year. Add $2000 a year for an aftermarket warranty and I am still only at $6000 per year.

That is half the cost, with cashflow staying the same.

Any thoughts?

Thanks,
Gerald
 
Gerald,

Using extremely ballpark math if one went for a 48k / 48month loan then the only thing you seem to have left out of the equation would be the interest, which may average 9 or 10k.

On the other hand you overestimated an extended warranty, that would be way less than 2k/year.

But agree that still you would have something at the end of the 4 years.

Had I known more about the NSX before getting one, I would have likely gone with a purchase of a 97+ rather than leasing. Guess the NSX is one of those few cars where new vs. 5 or 6 year old is just not that huge a difference.

Best of luck with your decision,

Ralph
 
I just read an ad in the NY Post this morning by Paragon Acura in Queens, NY showing a four year lease at $999.00 per month, so Acura must still be offering those lease terms.
 
One other financing option -- if you're a homeowner, you can take out a home equity loan and use that to buy the car. The interest rate is usually comparable to what a credit union has, plus since it's secured against your house, it's tax deductible.

-Bob
 
Whatever you do.....do NOT take a home equity loan for a car. You'd be taking an equity position and putting it into a negative equity position. Granted it's an NSX and it doesn't depreciate as much as most but it's still the worst thing you can do. A 401k loan is also very dumb for a car loan. The 2001 lease is NOT the same as the 2000 deal. The 2k deal was 2-5k out of pocket and 995/mo. +tax. The 2001 is 9,999 out of pocket and 999-1099/mo. +tax. Simply go to your bank and get the loan. It's not unusual to finance 10 yr. old exotics for 60-72 mos. AND it's not hard at all to find a lender with a good rate given that you have good credit. I have 10 banks that will finance you all day long. Contact me if you'd like.....after all, it's my job and I work all the time anyway, so why not a little extra effort on my off time.... right, Ralph?
smile.gif


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Todd Arnold
NSXotic.gif

http://www.geocities.com/nsxcessive/index.html
 
Originally posted by Nsxotic:
Whatever you do.....do NOT take a home equity loan for a car. You'd be taking an equity position and putting it into a negative equity position. Granted it's an NSX and it doesn't depreciate as much as most but it's still the worst thing you can do.

??? I don't understand -- perhaps we're talking about different things? The loan doesn't cause the value of my house to go down, so I'm not taking from an equity position. The loan is merely secured against the equity in my home -- if I default on the loan, they come and take my house (but I'm not going to do that). For this security the lender gives me a lower rate; plus, the IRS still allows this interest to be tax deductible (but perhaps not for much longer, according to recent news stories).

Please enlighten me as to why it is the "worst" thing to do. I would think putting it on credit cards at 21% would be somewhat less desirable.

A 401k loan is also very dumb for a car loan.

Agreed. Personally, I think 401(k) loans are dumb for just about anything, short of an absolute, life-threatening emergency.

-Bob
 
Originally posted by Nsxotic:
Whatever you do.....do NOT take a home equity loan for a car.

I dont agree with this. It is a better idea to do a home equity loan / line than a traditional auto loan assuming same interest rate. Why? Interest is tax deductible for equity loans or lines but not for auto loans.
 
ex. you have 50k equity in your home. You take a loan for 50k to buy a car. How much equity do you now have? 0. How much equity do you have in your car? 0. In fact, it will likely be negative equity, if not immediately, definitely within the first year and after. So now you start paying on your 'car' loan at ~8-9 %. Same as if you had a normal car loan. So you write off the interest at the end of the year.. maybe 2500 deduction. Saving you about 6-700/yr. IF you intend to pay your equity line off within 5 yrs. Will you? Not likely. More like 10 yrs. for most people with a 50k second. 5 yrs. would be best case scenario.($1000 per month) So, a total of 3-3500 in tax savings over those 5 yrs. Now, how much can you get for your car at THIS point? Guaranteed, much less because it is a car and it DEpreciates. What if you sell your house over the next 5-10 yrs.? Is it likely? You WILL lose if you do. If you don't sell, then it's a tiny difference to you but why risk it? Remember, equity in your home is like the stock market. You only truly gain if you cash it out when it's up. And you only truly lose if you sell when the equity isn't there. last example.... You do it, 50k equity is gone. You sell your house. You have 0. Can you sell your car and redeem the equity you had? No. So why do it? Get a car loan at a good rate and a short term.

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Todd Arnold
NSXotic.gif

http://www.geocities.com/nsxcessive/index.html
 
even though I'm not planning on purchasing an NSX at the moment, nor do I own a home, it was a great explaination on the facts there Nsxotic. much appreciated.

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2001 S2000
http://www.buymeaferrari.com
 
OK, Nsxotic, I see your point, but I still disagree with you. In particular, I disagree with the statement "IF you intend to pay your equity line off within 5 yrs. Will you? Not likely." Maybe I'm more disciplined than the average person, but when I bought the car I put the payments on a schedule that will have it paid off in a reasonable amount of time. (FWIW, less than five years.)

Let's do some more math
smile.gif
...

Say you have a $200,000 house, of which you carry a $150,000 mortgage. So, you have $50,000 equity. You take an equity loan for that amount, and buy the NSX. (As in your example, I'll just let the value of the NSX=0.) So, nothing else considered, your net worth is now $200,000 house - $150,000 mortgage - $50,000 equity loan = 0.

Same guy, but this time he gets a car loan from his credit union for the car. In this scenario, his net worth is now $200,000 house - $150,000 mortgage - $50,000 car loan = 0.

In either case, your net worth is the same. So, you must look at the interest you're being charged (factoring in the equity loan's tax deduction) to make a decision as to which is the better deal.

Your main point seems to be that the rigidity of a car loan will benefit the simpleton borrowing the money, who would certainly drag out his equity loan 10 or more years. I think NSX owners are more clever than that
wink.gif
.

-Bob ('94 #496)
 
I agree with bob. todd, your point has to do with the assumed discipline of people, not with which financing option is better. apples to apples - meaning same rate, payoff schedule, amount, etc. are the same any time you can get a tax break you are better off.

of course, you are right that someone will likely pay more in interest if they do an equity line amortized and paid over 10 years vs. a car loan amortized and paid over 5 years.

another point, most lenders will not provide aggressive interest rates on older vehicles. thus, potential NSX owners interested in 91 to say 96 models will find home equity an easier and more cost efficient option.


[This message has been edited by justin hall (edited 04 May 2001).]
 
Originally posted by justin hall:
another point, most lenders will not provide aggressive interest rates on older vehicles. thus, potential NSX owners interested in 91 to say 96 models will find home equity an easier and more cost efficient option.

This is an excellent point: What if you're buying a '91, and because of its age/mileage, the best rate a credit union will give you is 12%. Or, you can take an equity loan for 9%. A blanket statement that a equity loan is the "worst" way to finance the car discounts many other factors.

-Bob ('94 #496)
 
All the right tracks of thought. Like I said, if you pay it off quickly as a car loan, then there is minimal difference. The major factor is will you sell the house in this period. If not, then it's okay but that's a big factor. By the way, as I posted before, I have 9.875% x 72 on a 91. I have many lenders that will do the same. It'd be nice if we could all just take a week's net pay and pay cash and be done with it.
wink.gif


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Todd Arnold
NSXotic.gif

http://www.geocities.com/nsxcessive/index.html
 
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