pcimino

I'm not looking to upgrade my 8 yet, certainly not until after it's paid for and out of warranty....

But I'm wondering if any speed shops finance mods?

I think the way it could work is if the shop takes your car in trade and sells it back to you. So the financing is still between you and the bank or finance company. I don't see why the finance company would care if you're buying back your own car at a higher price, as long as the shop was registered as a dealer and could justify the higher value.

Maybe some larger shops already do this? If not it might be a way to expand their businesses.

Red Devil

I think the catch is justifying the higher value.

KYLiquid

right, the bank or lender wants to be able to take the car (or whatever is financed) from you and sell it to make their money back, plus any profit they could make, if you default on the loan.

I think this would be a cool idea, but most of the time mods, especialy major mods, will hurt the value of a car, at least short term. So having the car financed at a higher price than its worth would be tricky.

The most a bank or lender wants to give you when you buy a car is what its worth. I dont see many banks wanting to jump in and give you a loan for a 2 year old car that is more than the car is worth.

I have seen some of the autoshops (localy in orlando Eye-Candy) Im not sure how it works but I would think its a lender that working just in this field or its the owner of the store doing it with his own money.

What you do is go in and pick out your car, then pick out the wheels and the audio/video equitment (subs, headrest tvs, ect) and they finance the whole thing together. its mostly for pimp mobiles but its a neat idea to have all the ICE/Bling mods wraped up. Only downside is that you end up paying more for the wheels/audio stuff than you would if you just bought it. but that is true with anything you finance long term

policyvote

The only speed shops I've ever dealt with financed, but just for their work--you take out a loan to cover their bill. No need for the car to change hands.

Peace
policy

lurch519

depends on the speed shop. i work for a car stereo shop, and we finance through a seperate bank, that basically lends the customer money on a credit card like plan.

Tigster

Why not just use a low interest rate credit card if that is what you need to do? Most places that do fiancing charge a high interest rate that they charge. The best thing that I have always done is just save your money and pay cash and modify as you can afford it. Having credit card and retail debt sucks.....

BigOLundh

iTrader: (1)

A lending institution will not re-finance a car with the same vin to the same owner...
Many customers try to do this to lower their rate.

If you plan on selling your car to the shop and then buying it back, your probably going to need to finance it through a seperate bank.

pcimino

Thanks for all the thoughts. All this is theoretical, for me anyway. I personally plan to pay off my 8 and wait until its out of warranty before any major engine mods. But it would have been an interesting option to use the refinance route to avoid variable rate credit cards etc.

I personally will either use cash, when the time comes.

DreamWarrior

Just get an unsecured loan for the money you need. I got one for my stereo install a few years ago ($10k unsecured loan @ 6% fixed APR). I think I used Lending Tree back then to find a company willing to give me that much as an unsecured loan. Now that I have more credit I'm sure it'd be easier to do again.