Re: [DML] DeLorean Financiers?

[Senatorpack@xxxx]

In a message dated 04/28/2002 7:26:24 PM Eastern Daylight Time, 
dan@xxxx writes:

<< Anyone have any suggestions on banks that are generally ok with 
financing one? >>

In the case of a classic car or boat loan, similar to applying for an 
unsecured personal line of credit, your creditworthiness, income before 
taxes, and the magic number on your Personal Financial statement will take 
precedence over the cars historic value...unfortunately the DeLorean is hard 
to liquidate when time is of the essence from a banks point of view. 

Financial Institutions want collateral, e.g., your Real Estate (home 
equity line of credit) Stock secured loan, New car, savings secured loan, 
Certificate of Deposit secured, Royalties on intellectual property (music & 
film) secured loan, etc., etc., etc. The aforementioned collateral is easy to 
liquidate if you default on the loan. Investors actually invest in your loan 
on the secondary market. Banks want to give their stockholders and investors 
a return, so banks want to minimize their potential loss. 

If you were to default on a loan where you have pledged stock, cash, or 
real estate, those assets can be sold to investors in a reasonable amount of 
time. Banks rarely lend for a vehicle over 6 years old because the market 
potential is smaller as the car becomes older and obscure.

There are several classic car financiers such as JJ Best, ITT, and 
Provident Bank of Maryland. 
In addition, a Home Equity Line of Credit can offer you a potential tax 
incentive when you draw from your credit line. Consult your tax advisor.

Best Wishes,
Michael Pack