Re: DeLorean Financing

["therealdmcvegas" <DMCVegas@xxxx>]

--- In dmcnews@xxxxxxxxxxxxxxx, "David Teitelbaum" <jtrealty@xxxx> 
wrote:
> The reason most banks are reluctant to finance a Delorean is that 
they
> wouldn't know what to do with it if they had to reposses it. On more
> modern cars they are more comfortable with it if they had to take it
> back.

I've been given that reason in the past, although it's not one that 
I'm willing to buy into. Manheim Auto Auctions moves many cars around 
the country for dealers to trade them, and move vehicles to more 
popular areas where they can get a higher price for them. Once upon a 
time though, Manheim used to allow free searches on vehicles in their 
national database (although they wouldn't disclose the 
location/contact info to non-members), and there were always a couple 
of DeLoreans in their system. The numbers may have been low, but they 
would fluctuate showing some type of activity showing that they were 
indeed moving the cars around. A good example of this would be to try 
and run a Carfax report on old cars that you've traded in to dealers 
in the past. Car's that I've owned have gone from Vegas, and ended up 
in places such as Fresno, and even Idaho. And all have title 
transfers on them associated with auction companies. So yes, 
DeLoreans do indeed get resold on a regular basis.

So in the end, a lender refusing to loan out money on a car simply 
because they wouldn't know what to do with it, or even what I was 
told directly from a loan officer, "We wouldn't be able to resell the 
car" is total BS. They do indeed know what to do with vehicles. But 
when it comes to reselling a car that may need a bit extra foot work, 
they won't touch it. The most honest answer that I ever got from a 
loan officer made sense, and really cleared things up. He said that 
while they could resell the car, they would only do so thru 
conventional means. Typicly, this means trying to place a local ad 
for the car to have someone buy it outright, or to take over the 
payments. He said that while it is possible to sell it thru an 
auction (and Vegas hosts quite a few classic auto auctions on a 
regular basis here), the bank didn't want to do that, as auctions 
cost money, and they want to reduce their losses as much as possible. 
On top of that, they wouldn't know what type of auction to send the 
car to to exploit the most money out of it. So rather than research 
specialty cars, the bank would rather just stick with 
financing/reselling what they know, and judges all car values based 
upon deappriciation from MSRP, and not "special interest". Therefore, 
they wouldn't finance anything over 7 years old. A consoling story 
that the guy tried to give me (although it didn't help) was that I 
wasn't alone. He had people come in before attempting to finance 
exotics, and even classic American cars such as Corvettes and the 
like, and denied those too for the same reason. And according to him, 
I took the news allot better than they did. Of course most were home 
owners, and simply took out credit lines against their houses to get 
the cash.

Your best bet is to save up to get the car. Financing a D is quite 
difficult. Certain Credit Unions may be more flexable, but that's not 
a guarantee. Try checking the archives for full details.

-Robert
vin 6585 "X"