Has anyone ever heard of a company that does vehicle modifications loans. At one of the Hin's this past year I remember grabbing a flyer for one, with no intentions of using. Since then I blew my motor and was going to see if they would give me a loan for a new built motor. But now I can't find the name of the company, has anyone heard of anything like this.

 

Why not just a regular lender like a bank?

 

I already have loan thru them for my car and they said that my debt to income ratio is too high, I'm not even trying to keep the loan, my plan is to get the engine built and part out everything else on my car and pay off the loan. This is my daily driver so I kind of need it.

 

A collateral loan (the car is collateral) seems impossible because most likely you have zero equity in the car. There are lenders, such as Household Finance, that sell high-risk loans. Of course the interest rates are exorbitant.

 

I'm not too worried about the interst cause I will be paying it off very quickly. But I need to get the parts off first and get the car back on the road. I do own 100% of a 97 mustang GT too plus I've paid over half the Z off.

 

Use the Mustang as collateral and go to a bank a get a loan. They will likely give you a $3500 loan and keep title of Mustang until it is paid off.

 

I need more than that for an engine though, I need close to 6000. I will try that though and see what they will give me.

 

Use the mustang and do what is called 2nd lein on the Z(equity you have in the Z ...that will be enough if they say the mustang isnt worth enough.

 

+1.

 

I thought about that but consider that the 350Z is not drivable (it has a busted motor). So the equity is wholesale value minis debt. I think that is going to be a negative number.

 

Thanks I'll call my bank today. Hopefully they let me.

 

Would I be able to say its for another reason and use the equity still for a working Z.

 

I have been in banking for over 25 years and cannot think of any institution that would go in second lien position on an automobile. That is usually only done with real property (real estate). Additionally, you must keep in mind that whenever an lender takes collateral, it is based on how quickly that collateral can be converted to cash to pay of the loan in the event the borrower does not make the payments as prescribed. Getting a loan secured by a motor would be almost impossible, at least from a lender's perspective. Your best bet would be to find somewhere, like a consumer finance company, that would do an unsecured personal loan.

 

This is exactly why you shouldn't mod your car if you can't afford it, hence this case!

 

im probably thinkin in the wrong area here. but in phoenix there is a shop, i think its called Sport Compact Only. and they have a "credit card" which u can put everything on that and pay it off like any other credit card.

 

I done done consumer loans for 10yrs now and now all I do is auto loans. I have done tons of 2nd liens on cars that have the equity...it boils down to your credit. If you have good credit you should be able to get an unsecured personal loan. If your credit is not so good you will have to have colateral. Dont get me wrong I see what you are saying and it is different in different states, TN will do 2nd liens all day long if it has equity BUT they may want to see the car and get VIN#. That is where you might have a problem...maybe the mustang will be worth enough. Good luck.

 

You will be able to get a secured loan for the low value of the Mustang. About $3,500 sounds right, maybe a little less. If you need to do all of this, why not just put it on a credit card? If you get a loan at a bank you are going to have to pay origination fees and the int rate will be higher than a credit card.

If you can't get approved for a credit card, good luck getting approved for a loan for a car engine.

 

I realize this, and will be fine if I can't get the cash but didn't expect the motor to go out this fast. My goal was to get a motor build done in January.

 

I don't have a credit card with that amount, but am going to try to get a loan for the 3500 and then cover the rest on the card.