Financing Options

[Unique427]

Bill Lumbergh from OFFICE SPACE builds a Cobra.

[eschaider]

Originally Posted by 1ntCobra

Just for the heck of it, I went to a Ford dealer website to check out what it would cost for a new F-150 truck. I picked one for around $62K. I think it was over $1100 a month to finance at 9.9% for 7 years. Good thing I am not buying a new truck.

Yeah I think the $35K Cobra replica is probably a money pit, but you don't need to go to $100K either to get a nice car.

Here's is what appears to be a nice ERA with a price similar to the new F-150 truck I mentioned: https://bringatrailer.com/listing/1964-era-cobra-4/

This one looks really nice too, but is a bit higher at $72K: https://bringatrailer.com/listing/40...d-era-289-fia/

When I bought my SPF, I paid either $35K or $36K (I can't remember which anymore) for just the roller. The same car today with the top, front & rear bumpers, mats, car cover, etc. (all of which I bought at the $35K price point) will take you into the mid to high 50s before you begin the drivetrain.

An FE crate engine, with a warranty, from Roush will cost you between $30K and $45K, depending on how you spec it out. Pick the middle of the road, and the engine price tag is $37K. A Quicktime bell housing is $800, and a Tremec TKX, with a shifter, is another $3K.

Before we get to any of the expensive AN hardware and plumbing or fuel pumps, you are already at $94K ($54k + $37k + $3.8k, more than $ 100K when you add tax), and you haven't bought tires, or fuel system plumbing, or fuel pumps or ...

It is tough to build a nice replica for less than $100K today. You can cut corners and certainly try, but you will likely be envious of the 'other guys' with the 'more period correct' versions of the car when you're done, and then you will start spending once again. Alternatively, you might sell yours (at a high probable discount to what you paid for it) and buy a more period-correct car for $100K+. If you do, don't forget to add to that the price of the bath you took when you sold the one you should not have bought in the first place. Now, we are well over the $100K price point.

Dumb mistakes and false economies embraced on the front end of one of these adventures carry extremely high price tags on the back end. Don't try to short-circuit the basics of Cobra Replica acquisition. You will not be happy; ultimately, you will spend more money and not have what you thought you were originally bargaining for.

For those readers who are contemplating this sort of adventure, you should know that there will be others who are going to disagree with my argument. In the end, it is your money and, ultimately, your decision — choose wisely!

[twobjshelbys]

Originally Posted by eschaider

For those readers who are contemplating this sort of adventure, you should know that there will be others who are going to disagree with my argument. In the end, it is your money and, ultimately, your decision — choose wisely!

Completely agree. The lower tier cars are now selling at the same level that I paid for my CSX in 2008...

Building is an open ended money pit. You're much better off buying an already finished and sorted car.

[patrickt]

Originally Posted by twobjshelbys

You're much better off buying an already finished and sorted car.

Unless you want the car built exactly the way you want it, in every respect, and you don't care about the cost and you have no plans to ever part with the car... other than when you part with everything else in this world.

[Fenmyrch Fie]

Originally Posted by eschaider

When I bought my SPF, I paid either $35K or $36K (I can't remember which anymore) for just the roller. The same car today with the top, front & rear bumpers, mats, car cover, etc. (all of which I bought at the $35K price point) will take you into the mid to high 50s before you begin the drivetrain.

An FE crate engine, with a warranty, from Roush will cost you between $30K and $45K, depending on how you spec it out. Pick the middle of the road, and the engine price tag is $37K. A Quicktime bell housing is $800, and a Tremec TKX, with a shifter, is another $3K.

Before we get to any of the expensive AN hardware and plumbing or fuel pumps, you are already at $94K ($54k + $37k + $3.8k, more than $ 100K when you add tax), and you haven't bought tires, or fuel system plumbing, or fuel pumps or ...

It is tough to build a nice replica for less than $100K today. You can cut corners and certainly try, but you will likely be envious of the 'other guys' with the 'more period correct' versions of the car when you're done, and then you will start spending once again. Alternatively, you might sell yours (at a high probable discount to what you paid for it) and buy a more period-correct car for $100K+. And do not forget that all these movements of money will be accompanied by bank commissions if you pay by card. I read in one blog that this can be avoided if you use account-to-account payments. But for that, the seller needs to have such an option available. If you do, don't forget to add to that the price of the bath you took when you sold the one you should not have bought in the first place. Now, we are well over the $100K price point.

Dumb mistakes and false economies embraced on the front end of one of these adventures carry extremely high price tags on the back end. Don't try to short-circuit the basics of Cobra Replica acquisition. You will not be happy; ultimately, you will spend more money and not have what you thought you were originally bargaining for.

For those readers who are contemplating this sort of adventure, you should know that there will be others who are going to disagree with my argument. In the end, it is your money and, ultimately, your decision — choose wisely!

Yeah, this is definitely not a purchase you should make with a loan if you're trying to save money. Buying toys on a loan is always a bad idea

[chucks1]

When I bought my SPF in 2010 I also had an '07 GT500 with a clear title. I took out a loan on the GT500 and filled in the remainder with cash.

I recollect no one volunteering to give me a loan on a car that, while complete, had an MSO but no title. I also recollect that I was going to do whatever I had to do - within some semblance of reason - to get that toy into my garage.

[FredG]

I looked at 2 companies when I purchased my Backdraft 5 years ago. Woodside and Lightstream. I eventually settled on Woodside. They made the process easy and uncomplicated.

Fred

[eschaider]

The rate a lender charges is tied to the cost of money as set by the Fed at the time of the loan and the lender's perceived risk that the borrower would/will default. The reason secured loans have lower rates is that the value of the security that is pledged is typically greater than the amount being borrowed.

If the borrower’s liquid net worth is substantially greater than the loan amount, the risk is low, and so is the rate. If not, then not. Of course, if you have a substantial net worth, you would not need the loan in the first place, which brings us back to the risk factor(s) associated with default.