Take out a loan to buy a charger or no?

[chargerboy69]

It sounds like you "could" take out the loan.    But if I were in your shoes, I would continue to save cash and pay off the home.        With the aging of the muscle car hobby, time is on your side.     These cars cannot go up forever and eventually,  there has to be some softening.      There are a lot of cars coming to market with a lot more to come in the next ten years.    As "evergreen" as Chargers seem to be,   I feel that if you are patient,  the market will come to you.     

Wise words right here.

I am seeing this first hand.  Many of the local car guys here are in their mid 70s pushing 80, they know they will not be driving much longer.  Most of them are talking about selling their cars.  One of the gentleman has a 69 Charger RT/SE he bought brand new, all original from top to bottom, beautiful car.  But he is 81 and has not driven his car in the last few years.  Just one example of one of these cars going up for sale sooner than later.

[funknut]

What's for sale and what's affordable are two different things.   Yes there will still be value finds out there, but the guy with a 69 RT all-original one-owner will not be selling at $30k.  I'd wager there hasn't been a 5-year span in the last 20-25 years where these cars have stayed down in value.  I've had my 68 for over 5 years now and if I had to buy it today (in the condition I bought it then) I would absolutely be paying more.

Lots of wise advice here about not spending beyond your means, but whether you pay cash or finance, the value of the charger is going to rise or fall regardless.  If it costs you $22k to finance a $20k purchase, you just have to ask yourself if the car is worth $22k.  Whether the car is worth what you paid in 5 years when your loan payments are up has nothing to do with your decision to finance.

As already mentioned, the odds of you having to sink more money into the car are very high, so do keep that in mind.  If you're at the max of your budget with the initial purchase, but the car needs another $4k of work to enjoy, how long will it take before you can really start having fun with it?  How will you feel writing monthly checks for something you can't drive?

Just my $0.02

[375instroke]

I got one of my '69 Charger R/Ts from a dude that owed the bank, but his wife lost her job, they couldn't make the house and car payments.  He just wanted what he owed, which was $20,000.  He paid $30,000, but it was on Craigslist for a month, and nobody wanted to give him the cash.  Now, could you end up in that position?  I was afraid that there was something wrong with the car because good deals get snapped up, but it's a daily driver, and the only thing wrong with the car is that it's got me beating on it.  It gets single digit gas mileage, but parts to keep it running are cheap, and people will pay a lot more than $20,000 for it.  Now this was 2009, so perfect time to buy cars.  They've been skyrocketing since, but I feel the economy's going to tank again.  I would not pay top dollar, and get a loan.  Save up, and wait for the right car.

[chargerboy69]

  They've been skyrocketing since, but I feel the economy's going to tank again. 

It has too, the way the Fed is now pumping money into the economy to keep it propped up, we can not sustain that forever.  And when the economy slows, what is the first thing to go. . . toys. Boats, Harleys, Cars.  Just like 2008 was a buyers dream if you had the cash, it will come around again.

[Kern Dog]

  They've been skyrocketing since, but I feel the economy's going to tank again. 

It has too, the way the Fed is now pumping money into the economy to keep it propped up, we can not sustain that forever. 

You are thinking of the Obama years.
The economy is not being "Propped up". Less regulation, less taxes and stronger growth are what is driving the economy. Try watching something other than CNN or any other Liberal Biased network.

[Birdflu]

  They've been skyrocketing since, but I feel the economy's going to tank again. 

It has too, the way the Fed is now pumping money into the economy to keep it propped up, we can not sustain that forever. 

You are thinking of the Obama years.
The economy is not being "Propped up". Less regulation, less taxes and stronger growth are what is driving the economy. Try watching something other than CNN or any other Liberal Biased network.

DANG IT! This is the second time I find myself agreeing with K.D.! 

[GreenMachine]

Some of these responses seem like they belong on an financial independence/early retirement message board! Here is some good advice on that if that's what you're looking for:

https://www.bogleheads.org/wiki/Main_Page

https://www.mrmoneymustache.com/2013/02/22/getting-rich-from-zero-to-hero-in-one-blog-post/



He's a 25 year old pilot with 5 years left on a $500/mo mortgage and no other debt! There aren't any charities for starving pilots for a reason, he's not going to end up homeless if he makes a bad purchase on a Charger! It won't push his retirement back several years! I will admit though, that he needs to be contributing to a 401K at least 10%, preferably 15-20%, right now to take advantage of compound interest later. Then maybe consider a Roth IRA. Paying off his mortgage should be the last thing he does.

The only question he should be asking himself now is: Is this the top of the market, or will prices keep going up? I personally think in his position, even if he buys at the top of the market, he'll be OK because this is a hobby car for him and not an investment. People spend money on hobbies and don't expect anything in return!  People spend lots of money on vacations with nothing to show except memories! People spend money all the time and don't expect a return on their purchase!

My thoughts on the future of classic cars are that I agree some models will lose value once the current generation dies off. But those models will be the un-iconic cars, not the 68-70 B body 2 dr hardtops or coupes. People said the value of 50's cars will plummet, but you still can't get a '57 Chevy for cheap. Currently, the 57-61 Chrysler forward look cars (2 dr htp) are out of the price range of many (the Swedes are willing to pay more for the rare ones than anyone else these days).

Another point to think about, North Americans aren't the only ones who like these cars. Maybe as time goes on certain countries may ease their regulations on importing classic cars and the demand will skyrocket. The population of this planet is not going down, every day there are more and more "buyers" out there.

[69wannabe]

Life is short. I agree payments suck. Sounds like you are financially smart. If you can get it now get it. If you wait till you are older. You maybe dead. It's an investment if you take care of it you will get your money back. Not like an every day car. It took me along time to get mine done. Will be done by March. Good luck with your decision.

I have to agree with this, please find a mopar guy and make sure you know what you are buying. Lots of crooks and easily covered up rust especially when you are in awe of what you are wanting. Have seen too many things happen and what someone wished they had done they never got to do. I got lucky and have had my charger for over twenty years now, have spent a good bit over the twenty year span but it is an investment. I probably have about half the money in it than it is actually worth but I have done lots of the work myself and are lucky to have friends that are very talented in paint and body work.

I am nearing the big 50 myself with all kids grown and supporting themselves and had just paid the wife's Jeep off and left me with the house payment only. I have always wanted a newer Challenger and was talking to my mom about it and she said "you have always paid your way and kept your credit good so if you want a car then go find it"

Don't get me wrong, I can't afford a new challenger or really don't want a brand new one but I did find a nice 2010 R/T that is solid white and a one owner with 50,000 miles on it and was priced in my range of what I wanted to spend. I looked a 4 or 5 different ones and all things pointed back to this one.

It will be paid off in 5 years or sooner and that's fine but I have had it for a couple weeks now and have enjoyed it. Absolutely love the plain white challenger, I could never afford a "vanishing point" challenger so this is as close as I will ever get and even tho it's plain I have gotten lots of compliments on it and folks can't bekieve it's a 10 year old car.

Sorry to ramble but we only live once and for a very short time so if it's not going to put you in a bind money wise then see what you can do. Just do your homework, read up on these sellers, check sellers ratings and find a mopar guy to check it out and see what your getting into.

[Old Moparz]

By all means finance it. 

You need to stop being so selfish & start to think about the wealthier people who wait for others to go bankrupt so they can buy cool stuff for pennies on the dollar. If more people used their brains instead of their emotions on an expensive toy purchase, the wealthier people would have to keep putting their money in off shore accounts & hoard it.

[tan top]

if you have enough disposable income , to take a loan out / finance a charger, for what ever reason you have  either had enough of working on these old cars to last 2 life times  or  your not the kind of person who has the skills & workshop shop to do a nut & bolt resto by your self ( no offence meant to anyone) ,  then take a loan to buy  the best condition  one that has had a total  nut & bolt resto , that's been done correctly i know that open to some interpretation  , the kind for charger i'm talking about would be more than 60k & not over inflated perfumed pigs on ebay & the like , get a loan out to buy a good one THEEE CHARGER not one that's going  to need any kind of work ( short term , they all need work sooner or later they are 50 plus years old even when they have had a nut & bolt resto) , except the normal service items etc  , if your not sure whats what , take a noted expert with you to inspect the car. make sure the car you buy is exactly what you want & been restored correctly total nut & bolt job , so all you got to do more or less is  normal service tasks / items ,  polish/ detail it every now & again  &   put gas in the tank.
as we all know  second generation charger prices have got crazy ! so that being said , getting a loan out paying interest on a charger that needs resto work or a nut & bolt resto some time in the future ,  especially if your going to have to pay someone to do the work for you,is  not a good idea imo that's 3 lots of expenditure , 1 loan repayments with the interest rate , 2 cost of parts , 3  shops / companys / guys labour cost to do said work required . for a car that could well be in & out various workshops for years  having work done that's required for a 50 plus year old car just to be able to use it like a normal  modern A-B daily driver .hope this makes some sense 
 good luck what ever you decide  

[b5blue]

  A "driver" as in it will be your main ride? A financed car requires insurance to cover the debit and liability in traffic. What killed these cars in the 70's was insurance. If you pay cash (Even if you use a signature loan.) you can insure for minimums. The right loan can help build credit and get you what you want but "driver" old cars can be tricky to get/keep reliable. If you visualize exactly what you want and are reasonable in expectation just be patient, you'll find it.
 Are you mechanical skilled? Aware of just how much free time you have? Do you like bloody knuckles and rust in your eyes? Have you had a Tetanus shot yet? Look at it this way: Your car has been waiting 50+ years for you. (But it will not be denied payment in flesh and/or money.)  

[chargerboy69]

  They've been skyrocketing since, but I feel the economy's going to tank again. 

It has too, the way the Fed is now pumping money into the economy to keep it propped up, we can not sustain that forever. 

You are thinking of the Obama years.
The economy is not being "Propped up". Less regulation, less taxes and stronger growth are what is driving the economy. Try watching something other than CNN or any other Liberal Biased network.

This was happening then, it is happening now too.  Put your head in the sand if you wish but a decline is coming, it has too.  The economy runs in cycles and every so often we hit a rough patch.  Only this time the Fed is pumping billions into the system to keep things propped up.  Will it be as bad as 2008, I hope not, but there will be a correction sooner rather than later.

By the way, before you go shooting your ignorant mouth off about something you clearly know nothing about it is usually best to know the facts before typing, I am not really into what you call "Liberal biased networks". But of course this will not matter to you, I have been watching you insert you foot in your mouth for years on this board, you would think you would have learned something by now.


https://www.theblaze.com/glenn-tv/federal-reserve-repos


I apologize to the OP for derailing his thread, I felt the need to correct a fellow member.  I will not post in your thread again. Thank you. Tim

[RallyeMike]

I am also with the "no debt" crowd personally, other than houses which most all of us cannot buy outright. But also, life can be shorter than you think or change in an instant. How bad you want this and if you are willing to pay a little more (interest) to achieve it earlier is only a question you can answer. There is nothing wrong with financing your dreams as long as you do it responsibly.

[Mike DC]

                                      

This is one of those topics... if you are cautious and seeking advice about it, that already puts you in the smarter half of the people who do it.  

[Challenger340]

 They've been skyrocketing since, but I feel the economy's going to tank again.  

It has too, the way the Fed is now pumping money into the economy to keep it propped up, we can not sustain that forever.  

You are thinking of the Obama years.
The economy is not being "Propped up". Less regulation, less taxes and stronger growth are what is driving the economy. Try watching something other than CNN or any other Liberal Biased network.

The Fed been pumping $60 Billion a month since Sept..... if that's NOT "propping up" I dunno what is ?
https://markets.businessinsider.com/news/stocks/why-fed-repos-capital-injections-might-not-calm-liquidity-fears-2019-10-1028643549#who-receives-fed-aid-1

relative to the OP's question of taking on Debt to buy a Charger....the more liquidity being injected, eventually it has to go somewhere ? hence for example does anyone actually believe DOW valuations are 28K based on "fundamentals" ? Of course they aren't !
that's just the product of more and more money needing somewhere to go.... buy ANYTHING/any ASSET to hold relative value in future !

[gtx6970]

Well
Having owned dozens of old Mopars, And Yes Ive even financed a few. All were paid off early btw
Always and I mean ALWAYS the car was easily worth more then the amount I financed.
In fact I am about to do it again. And the car Im about to pull the trigger on  is easily worth 10-15K over what Im paying.,,,,maybe more based on recent sales I know of

The way I see it , live your dream now.  None of us  know what the future holds. So enjoy the time we have . And if that means a payment on an old car. Then by all means ,,,Dive in .
But be smart about it, shop around for a good buy / best deal on a car that pops your buttons . If your not 100% happy with it when payment time rolls around every month you are going to dread it writing that ck
And no way would I finance a project car in way  shape or form. Up the budget and buy something done or damn close to it
if you have money saved , keep it and use someone else's money to buy with. That way you keep a safety net in case something goes wrong instead of having to sell the car .

my 2 cents ,  

[VegasCharger]

"I can afford it".

One of the most misinterpreted phrases ever.

The "I can afford it" phrase doesn't mean that by taking out a loan you can "afford" the monthly payment based on your monthly income. What if you lose your job?? Can you afford it now?? Oh but I'm not going to lose my job, I'm indestructible! Payments stopped due to no income and off goes the car on the repo tow truck.

The "I can afford it" phrase means that you have the cash, liquid cash to buy said item in full.

Man all of the loser stories I hear about stupid car payments by owning a new car with a $500+ monthly payment. Wow just wow.

[Mopar Nut]

Back in 1991, I was going to take a car loan for $40,000 out for a 1971 Plymouth Hemi Cuda' convertible with less than 10,000 miles. What are the prices now??

In 2012, I bought a 1968 Charger for $2,000 on a credit card, sold it a week later for $6,000 to buy a better year Charger, a 69.

Go for it, it's only money and you only live once!

But buy a done/complete car!!!

[70 sublime]

All these suggestions of go for it take out a loan

I am not sure $30 000 is enough for a complete done needs nothing car

Lets see some examples of the best affordable done Charger that is on the market right now

[white]

45k would be more of a realistic price of a decent car.

[Birdflu]

45k would be more of a realistic price of a decent car.

[INTMD8]

"I can afford it".

One of the most misinterpreted phrases ever.

The "I can afford it" phrase doesn't mean that by taking out a loan you can "afford" the monthly payment based on your monthly income. What if you lose your job?? Can you afford it now?? Oh but I'm not going to lose my job, I'm indestructible! Payments stopped due to no income and off goes the car on the repo tow truck.

The "I can afford it" phrase means that you have the cash, liquid cash to buy said item in full.

Man all of the loser stories I hear about stupid car payments by owning a new car with a $500+ monthly payment. Wow just wow.

So same with a house then right? If you didn't pay cash you can't afford it?

[lloyd3]

It seems like the bottom line here is "will these cars retain their value?".  I was listening to a local radio show yesterday discussing all of the car-themed TV shows that one can choose from these days. The discussion was centered on which ones were favorites.  I knew there were a few, what I didn't know was just how many there actually were now.  If modern media has invested successfully in so-many of these "fix it up and run it" shows then... I have hope. I know that the average age of a 2nd Gen Charger owner is pretty scary now, but these cars fit into a rather narrow window of "maintainable performance" that could very-well make them evergreen, an almost ideal combination of style and simplicity. Modern muscle is unbelievable in so-many ways (comfort, dependability, outrageous performance) but...good luck on the average fellow being able to maintain one of them. All of that technology will not age very gracefully, just look at the value of the older Cadillac Northstars if you want so see how all of that will end.

These cars are a good gamble for a number of reasons, many which have already been identified earlier here, but the best one is simply that they are "iconic" now. Because of nostalgia for the period when they were built, because of substantial media attention in television and movies over the years, and because they are truly rolling "art" and.....damn fun to drive.

[Lennard]

"I can afford it".

One of the most misinterpreted phrases ever.

The "I can afford it" phrase doesn't mean that by taking out a loan you can "afford" the monthly payment based on your monthly income. What if you lose your job?? Can you afford it now?? Oh but I'm not going to lose my job, I'm indestructible! Payments stopped due to no income and off goes the car on the repo tow truck.

The "I can afford it" phrase means that you have the cash, liquid cash to buy said item in full.

Man all of the loser stories I hear about stupid car payments by owning a new car with a $500+ monthly payment. Wow just wow.

So same with a house then right? If you didn't pay cash you can't afford it?

A house is not a toy, smartypants.

[INTMD8]

Doesn't matter. 

If you can't pay cash you can't afford it applies to everything if that's your logic.