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Thread: kit car financing?

  1. #1
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    kit car financing?

    Ok, sorry for being a noob. I am still new on the scene here. I was wondering if any of you all have ever financed a kit project? If so, where? Also, I am looking to build my first LP640 Kit via stretched Fiero frame and tub. Does anyone have an projected "ESTIMATE" of how much one should cost? Just from my "Noobie" research, I think I should be able to build mine for around $25,000.00. Please correct me if I am way off base. Please keep in mind, this is my first build and I will not be going extreme with say, power seats, power mirrors, etc... Just the basics, LP640 coupe, fiero chasis/tub, lights, paint, interior etc..

    Please help a fella out with his first dream. :P

  2. #2
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    Re: kit car financing?


    I believe it's DIFFICULT to get any kind of financing from a Bank to build a replica, especially in this tough economic climate we're in....You can probably get some kind of PERSONAL Secure loan (if you own a house or something of higher value for collateral). You will NOT be able to get a car loan for sure for any kind of Replica build. Nobody is going to loan you money for some IDEA you have on paper, LOL ;D

    That's the harsh reality in the Replica car business....


    On the hand if you have some of the money now, you might want to consider buying an incomplete Murci replica....some people are selling because they can't afford their projects or have other priorities....There's at least one person in this Forum who's selling his incomplete LP640 based on a stretched Fiero for cheap (around $15K I think)....It's a running and driving replica with a nice Lambo kit on it.

    Sorry to burst your bubble on financing but unless you have assets and a nice paying day-job, no Bank is going to finance your replica build as a car loan.....A personal loan is your best bet.

    Best of luck

    VK
    Life is too short to be driving Hondas!

  3. #3
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    Re: kit car financing?

    Quote Originally Posted by goyal99

    I believe it's DIFFICULT to get any kind of financing from a Bank to build a replica, especially in this tough economic climate we're in....You can probably get some kind of PERSONAL Secure loan (if you own a house or something of higher value for collateral). You will NOT be able to get a car loan for sure for any kind of Replica build. Nobody is going to loan you money for some IDEA you have on paper, LOL ;D

    That's the harsh reality in the Replica car business....


    On the hand if you have some of the money now, you might want to consider buying an incomplete Murci replica....some people are selling because they can't afford their projects or have other priorities....There's at least one person in this Forum who's selling his incomplete LP640 based on a stretched Fiero for cheap (around $15K I think)....It's a running and driving replica with a nice Lambo kit on it.

    Sorry to burst your bubble on financing but unless you have assets and a nice paying day-job, no Bank is going to finance your replica build as a car loan.....A personal loan is your best bet.

    Best of luck

    VK
    I kind of figured that the personal loan would be the route I would have to go. Which that is not a problem. I am fairly sure I can obtain that. (Depending on the ammount needed) Any idea how much a project should run? ($20,000-$30,000?)

  4. #4
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    Re: kit car financing?

    upwards between 50 60 for nice

  5. #5
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    Re: kit car financing?

    Quote Originally Posted by katana
    upwards between 50 60 for nice

    Guess I better find another dream! :-\ :-[

  6. #6
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    Re: kit car financing?

    Quote Originally Posted by allen2680


    I kind of figured that the personal loan would be the route I would have to go. Which that is not a problem. I am fairly sure I can obtain that. (Depending on the ammount needed) Any idea how much a project should run? ($20,000-$30,000?)
    I'm NOT an expert on an LP640 build but anything less than $30K for a build like that sounds awfully CHEAP!

    I don't think it can be done that low.....I'm sure other builders will give you a better $$$ estimate...

    VK
    Life is too short to be driving Hondas!

  7. #7
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    Re: kit car financing?

    Check PM Allen.

    Raj

  8. #8
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    Re: kit car financing?

    Quote Originally Posted by meraaraj
    Check PM Allen.

    Raj
    Replied.

  9. #9

    Re: kit car financing?

    When ever anyone asks how much a kit (or any other custom) car build is going to cost, you will get two answers. The first being very low and the other being high. The truth has more to do with your skill set and accurate bookkeeping. When I started my build ,that was a non stretch rebody, I was budgeting $15k. Like you, I read up on the project via the internet and I meet with kit car builders in person. I was starting to believe that my budget was set a little high to cover the little expenses and that the guys who (mostly privately) said that it will break $30k were just wrong. I believe that I could build the car cheep because all of the "experts" on the web said so. What I discovered is that the "experts" either did not tract their expenses or where highly experienced body repair workers/shop owners.

    The rule of thumb for any project car is to never finance it. If you do not have the cash, then do not start. Many people start car projects, and very few finish. I am guessing that less than 25% of kit cars get on the road, and of those, less than 5% look right(or are safe to drive). Look at how many kit car manufactures are out there, and how few completed cars there are. Also look at how many incomplete projects are for sale. I still love the hobby and do not want to discourage you. You should know what you are getting yourself into. Also, find a good mentor. I could not have finished my car with out the help of the truly gifted people helping me out. The last thing you want to have is a big pile of expensive parts and an incomplete car that is costing you interest.

    Here is the kit car motto: "Your project car is worth very little until it is competed"
    It does not matter how much money you have in parts, it is difficult to sell for less than half what you have in it.

  10. #10
    Senior Member lovef501's Avatar
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    Re: kit car financing?

    I think it has to be a turn key


    http://www.jjbest.com/pages/about

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