Financing an E55 with value over KBB.
I have found a couple of E55's that I really like and in clean condition but are in the $18k-20k range. The only thing stopping me from getting one of these E55s is that I am having a hard time finding a credit union/bank that will finance them. I have excellent credit, its just that since they are older cars, most banks wont touch them. I have found a credit union that is willing give me a loan but only based on NADA values which are in the $13k range at most for one of these that I found going for $18k-20k. Have any of you guys found a bank/credit union that Is willing to work with cars that are older and priced above book values?
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Lightstream or exotic finance groups, but you pay a huge premium and be required to carry stated value full coverage insurance
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Banks usually wont touch cars older then 10 years or over 100k miles. You just need to find a credit union that will do it for you. When I sold my E55 over "market value" the buyer went through Penfed Credit union and they did the loan for him on my 05. Give them a try.
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if you're lucky they'll give you what the KBB value is and you'll have to cover the rest...
beyond that you'll need to find another banking institution or request a personal loan. the difference between a personal loan and auto loan is that the personal loan will hold a higher interest rate. Also, they won't hold onto the title of the vehicle, you will. |
also be advised...if you buy at say, $18k, and a week later you (heaven forbid) total it? Insurance will only pay what their third party appraisal service appraises the car for. And I can guarantee it wont appraise through them for $18k..
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Credit union is the answer you’re looking for here. I financed mine a month ago through my local credit union. Even though they valued it at around $13k they financed more than that. Purchase price was just under $20k. I did buy GAP insurance through the credit union to cover my butt in the event I do have something happen. Also great rates. |
I hope you also have a spare $5k for all the maintenance the previous owner didn't do and any unexpected repairs.
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I know I'm in the minority here, but I don't think you should be buying one of these cars if you have to finance it.
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if you have $18k cash, you wouldn't be looking at a 12+ year old car.
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Originally Posted by b16gsr
(Post 7602456)
Lightstream or exotic finance groups, but you pay a huge premium and be required to carry stated value full coverage insurance
If you have decent credit you should have no problem getting the loan through them. |
I financed mine only cause the interest rate was so low. I rather keep the cash and make interest on it on a money market account.
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I financed an E55 wagon that was a good $5k over KBB.
I used lending club, because banks won't touch a car that old for financing, especially over KBB. I had to pay slightly higher interest rate than a traditional auto loan (4%) but it's completely unsecured and I have the title to the car. Edit: I recommend them for weird, older car purchases like this. They make a decision and deposit the money straight into your bank account within 24 hours. I was able to cut a certified check for the car about a day after I first found the listing. |
Originally Posted by Strigoi
(Post 7602781)
I know I'm in the minority here, but I don't think you should be buying one of these cars if you have to finance it.
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BECU (boeing employee credit union) set me right up when I overpaid for my car when it came up on Ebay during my off-season. To deal with insurance issues, I got a declared-value policy through progressive. I don't like that outfit much but the car is insured for more than I paid for it. And when I got rear-bumper-tapped in the parking lot, they didn't balk at all with the whole replacing of the bumper cover with the same EV12 item direct from Brabus it came to me with.
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Originally Posted by EvoTechnik
(Post 7602827)
I financed mine only cause the interest rate was so low. I rather keep the cash and make interest on it on a money market account.
Originally Posted by cfmistry
(Post 7602936)
I agree. Toys shouldn’t be financed. |
Aren't there several nice clean E55s available that can be had for $13k or less.
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Originally Posted by cfmistry
(Post 7602936)
I agree. Toys shouldn’t be financed. Rob. |
Originally Posted by Windowguy
(Post 7603570)
I also agree with these statements. Also the cars are affordable to buy now because of deprecation but the maintenance, repairs and parts are not cheap.
Rob. If you meet those requirements... These cars are awesome :y |
Originally Posted by hachiroku
(Post 7602813)
if you have $18k cash, you wouldn't be looking at a 12+ year old car.
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Originally Posted by drothgeb
(Post 7603901)
Another agreement here. Unless you have another vehicle spare, enough mechanical aptitude to work yourself, and enough cash for costly parts and/or labor if you don't do it yourself.... Stay away.
If you meet those requirements... These cars are awesome :y If I had to depend on the dealer or pay an indy shop to do the work I would not consider owning an E55 or E63. They're a great value for someone that can DIY or has a hook up like I do.
Originally Posted by Davednconfused
(Post 7603928)
I bought my E55 for more than that... in cash... so....
You guys want to know why I'm going to be selling it? I really want a VW Bug (preferably a Baja w/ a Subaru swap) for some reason. I like the E63, but I've had it for a couple of years and am bored with it. Time for something else. |
Originally Posted by tw2
(Post 7602747)
I hope you also have a spare $5k for all the maintenance the previous owner didn't do and any unexpected repairs.
Originally Posted by Strigoi
(Post 7602781)
I know I'm in the minority here, but I don't think you should be buying one of these cars if you have to finance it.
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Originally Posted by Strigoi
(Post 7603935)
You guys want to know why I'm going to be selling it? I really want a VW Bug (preferably a Baja w/ a Subaru swap) for some reason. I like the E63, but I've had it for a couple of years and am bored with it. Time for something else. If interested pm me and I will see if I can get you his number. |
Originally Posted by tlambert
(Post 7604001)
I know a guy, I believe in the Sac area that is doing some Subaru swaps. He has done several beetles and buses. He just did a Vanagon swap and is about to do a Single cab. If interested pm me and I will see if I can get you his number. https://sfbay.craigslist.org/eby/cto...724516865.html |
Originally Posted by cfmistry
(Post 7602936)
I agree. Toys shouldn’t be financed. If I had paid cash I knew the insurance payout would have likely been abysmal. With GAP insurance, the whole thing would just be paid off. |
Originally Posted by AsianML
(Post 7604150)
I generally agree. To provide a counterpoint though....I could afford to pay for mine in cash (plus maintenance and repairs) but I chose to finance mine when I bought it last year. I was able to get an extremely good 2.49% on it and I put zero down. But the main reason I did it was because I figured the likelihood that this car was going to get into an accident (and possibly totalled) was greater than average because I chose to drive it year round including the winter.
If I had paid cash I knew the insurance payout would have likely been abysmal. With GAP insurance, the whole thing would just be paid off. |
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