MTFCA Forum

Are there options to obtain financing for the purchase of a Model T? I did a quick search on the Internet and I found some advertisements for classic car loans, but they don't appear to include Model T's. And for the record I don't want to do a personal loan or home equity loan. So, is there any place out there that does financing for Model T's?

Some car dealers sell Model T cars. Maybe contact them and ask if they can arrange a loan with you.

If you are a member of USAA, they will finance an antique auto loan. ☺

You could also do a personal loan, or an equity line on real estate you own. The interest on an equity line may be tax deductable so check on that with your tax person.

I have used Lightstream for an antique auto loan. Their rates were good and the turn-around was quick, 3-4 days.

I took out a personal loan once from these Guys:

Carmine
Roscoe
Iggy
Manny The Bowler
Eddy The Juice

The Penalties & Interest were more than the Loan ...


FJ

We used our local banker. Oop, she retired. The replacements wanted to do a home equity... Nope, we don't need your services.
Keep working at it Glenn. You'll find the banker to suit your needs.

Do a credit card balance transfer using those checks that come in the mail. The APR is often zero. Don't use the card after that and don't miss a payment or the interest rate will zoom up high.

You might try your insurance company. I've never financed a Model T, but State Farm offers very competitive rates. We finance all our new vehicles through them. Collateral is collateral. If the T is worth more than you are trying to borrow, then I doubt they would have a problem with it. Ain't like it's gonna depreciate like a new one will, so they really ought to have even less problem with it.

I don't think I could borrow money to finance my hobby. This situation might be considered an investment opportunity, then borrowing might be considered.

I suppose one might characterize borrowing money for a hobby as being financially irresponsible. I've heard it before. It takes all kinds. If someone can make the payments, then what difference does it make? Perhaps someone who doesn't have $8K to $10K in non-committed liquid assets doesn't deserve to own a Model T? Like I say, takes all kinds, but I don't think that way.

If you have access to a credit union, they might finance it. I once financed a Piper Cherokee through my wife's credit union. To this day it is the only airplane they ever financed. The loan was paid off early, so I can think of no reason why they wouldn't do it again. Why not a Model T? It can't fly away.

Y'all got it bad !!
I think my dad paid $100 for my T in the 50s.
A trailer full of bushel baskets it was...
Maybe the times have changed a bit.

I financed mine with the owner. No interest, xxx down, and xxx per month until paid in full. It took one year.

Wow! I can't imagine going into debt for a T! To each their own I guess...

Interesting topic. People go (deeply) in debt for "conventional" recreation all the time. Motor homes, camp trailers, cruise ship excursions, guided hunting trips, fishing boats, etc. etc. Maybe a lasting stigma for violating fiscal responsibility and thrift was inherently breathed into each flivver by Henry Ford hisself ?

As one acquires parts and processes over years to complete a restoration, I think a "pay as you go" mentality is the norm for most of us who are afflicted. That approach may actually be rather prodigal; borne out by the fact that few restorations recoup the costs involved when the car is sold. It well may be much better business to take a loan for a desirable, complete car. I took a loan to buy my Lizzie a couple of years back because I did not want the opportunity to pass while I was converting resources. I did it, and I'm glad !

Nothing wrong with taking a loan....as long as it is a loan you can afford. My opinion is if you cant make 3-4 times (2 times at a minimum) the minimum monthly payment, then your probably going to owe more than you would ultimately like to spend (or could afford to spend).

I have done various loans over the years, my favorites are the interest free loans given by credit cards. I use them all the time to get what I want now vs later. Yes, I could use my savings to do the same and give myself an interest free loan, but my money sitting in the bank continuing to making money on interest and using a credit card offer for free sounds much more appealing. Plus, if you don't use cards regularly, it helps keep your credit up.

It isn't necessarily irresponsible (at least in my opinion), that issue usually comes when you could afford to pay off a $5,000 loan, but the bank says they can give you $15,000 and you take it and get in over your head. They do the same with house and modern auto loans.

And as others stated, sometimes you need a little boost to not lose out on something you might have always wanted. Just do it responsibly. I speak from experience, as I spent most of my life running my finances into the ground...buy now figure out how to pay for it later. It is no way to live and glad I was able to straighten my life out and clear my debts.

This discussion reminds me of Jimmy Stewart in its a wonderful life, where Potter says the lower class people should have to wait until they can pay cash in order to own a home, rather than finance it. Easy for him to say, given his station in life. Might be some of that going on here.

It is an old car, It will break, there is no warranty, it needs attention, and a good place to store.

So why would anyone finance an old car where the hobby's interest is less and less. Now the engine fails, there goes a good $5,000.00 plus.

I do not understand why. I know I am not alone.

All the Best,

Hank

Tim Rogers wrote: ↑

Wed Apr 10, 2019 4:20 pm

Wow! I can't imagine going into debt for a T! To each their own I guess...

Tim, basically I agree, however, I suspect not too many of us have say $20K (or more) laying around to
plunk down on a fairly nice brass car, let alone a fully restored black car. As for me, I have hit my retirement annuity
more times than I care to admit, but to me, I'm just "borrowing" my own money and paying myself back, so I can
justify it that way. I did the HELOC thing a couple times, mostly for resto expenses, but had to stop that quick as
it can turn into a runaway freight train. After spending thousands to achieve a lofty goal of four T's (and one Model A) and
exceeding that by ending up with six, I quickly realized I needed to downsize or go broke!! I had fun, so it was all good.

Nimrod wrote: ↑

Tue Apr 09, 2019 5:56 pm

Are there options to obtain financing for the purchase of a Model T? I did a quick search on the Internet and I found some advertisements for classic car loans, but they don't appear to include Model T's. And for the record I don't want to do a personal loan or home equity loan. So, is there any place out there that does financing for Model T's?

This isn't everybody's way to do it but you could do what I did: self finance a project.

I started out with a basic running gear that was missing several parts. Across the years, I bought parts as I could afford them. It took seven years. That length of time may not be everyone's cup of tea. However, I ended up with a driver, one that I enjoy and I know every nook and cranny of my Model T.

It also didn't require me to get on the hook for interest payments. The "interest" cost was that sometimes I didn't have a part and knew I would have to wait to purchase it.

Credit union mightbut highly unlikely
They did once on a model A but i had to have a co-signer
As wrll as them being on the title.
Depending on the car price i suggest a private loan company. They loan you 10k if you have decent credit or property interest is higher then the bank but usualy easier money is.
My daughter at 27 told me she had no plans to marry her boyfriend and i was free spend it on thing i wanted
Guess I raised her right

I wanted a $20k tractor and only had $10k liquid, but the banks wouldn't finance a tractor. I borrowed against my modern truck which was paid off a few months earlier.

3 year loan was financed at 2.9% for an auto loan compared to something like 8% for a personal loan, and completely hassle free unlike a home-equity loan that would require an appraisal.

I don't like to finance a hobby either, but I would if the right car came up at the wrong time.