Banks that finance vehicle for more than KBB

[jamba]

I'm not really sure where else to ask this so I'll post here.

I have a buyer lined up for my car, but he wants to finance most of it. Since I am selling for pretty much double MSRP due to mods (Harrop, BBK, Suspension, etc), the credit union that he was working will approve him for the amount but not my car since they don't mess with vehicles that are modified.

That said, does anyone have any experience with other lenders?

[Bpark1977]

Originally Posted by jamba

I'm not really sure where else to ask this so I'll post here.

I have a buyer lined up for my car, but he wants to finance most of it. Since I am selling for pretty much double MSRP due to mods (Harrop, BBK, Suspension, etc), the credit union that he was working will approve him for the amount but not my car since they don't mess with vehicles that are modified.

That said, does anyone have any experience with other lenders?

He's more than likely going to need to get a personal loan and then buy it.
You need to look at it from the banks POV. If there is a default on the payments they need to know that they can EASILY get their money back. While, to the car community, your car may be worth X amount of dollars...not so to the bank.
One can argue all day about "its worth this, these mods cost X, you can easily sell it for X" and the bank reply will always be "if it was so easy to sell at that price, you wouldn't need a bank loan".
Any established lender is always going to cover their ass and there just isn't data comprehensive enough for it to be worth it for them.

There may be some lender out there who will take the loan but I guarantee there will be a huge down required, some exorbitant fees, and a stupid high interest rate.

From my experience, a serious buyer of a highly modded car wouldn't need the sellers help finding a loan. Ymmv of course.

[Bpark1977]

Honestly you'd probably find it easier to return it to stock and sell the parts.

[SAMM3Y]

I would imagine first you'd have to have the car appraised through someone like AAG. Then have it financed and insured through a classic car credit company.

[BayE30]

Sounds like buyer needs to nut-up and put enough down payment to cover the delta between selling price and KBB.

[mikejnc]

Someone mentioned Lightstream to me before. Apparently, their used car loan process is different... It's more like a personal loan. They deposit the money into your bank, you buy the car from whomever, you keep the pink slip... The downside is the interest rate seems higher.

Since it's more like a personal loan and not a lien against the vehicle, I don't think the car's value matters as much.

Might want to verify this info though as I don't have firsthand experience on it. The guy that mentioned it to me was trying to purchase an e9X M3 and put the cost of repairs (rod bearings, throttle actuators, etc.) into the loan, so it would be more than the vehicle's worth.

[jamba]

Originally Posted by mikejnc

Someone mentioned Lightstream to me before. Apparently, their used car loan process is different... It's more like a personal loan. They deposit the money into your bank, you buy the car from whomever, you keep the pink slip... The downside is the interest rate seems higher.

Since it's more like a personal loan and not a lien against the vehicle, I don't think the car's value matters as much.

Might want to verify this info though as I don't have firsthand experience on it. The guy that mentioned it to me was trying to purchase an e9X M3 and put the cost of repairs (rod bearings, throttle actuators, etc.) into the loan, so it would be more than the vehicle's worth.

yeah - I read about this too when I searched the internet. I'm going to mention it to the buyer. thanks

[e90m3808]

If he's military, usually Navy Fed/Pen Fed will do a higher % over book value. Most banks cap out at 120% of book value (i.e. if book value is $10k, approval for $12k). In this case if your sale price is double book there's a 0% chance he will get approved unless he puts enough down to get close to 120%, and thats assuming top tier credit. Never used lightstream, but if he doesn't get approved there I'd just convince him to fork up the down payment. It doesn't make sense either, high rate financing what I'm assuming is $~45k. would be like $15k finance charge. Screw that.

[Ab28]

Definitely Lightstream or PenFed.

They normally loan out based on income and credit.

It shouldn't matter that the car is over book value with them.


And not that it matters but hope the buyer has some funds on the side because even if your car is perfect, things can break!

[WWM3]

Originally Posted by Ab28

Definitely Lightstream or PenFed.

They normally loan out based on income and credit.

It shouldn't matter that the car is over book value with them.


And not that it matters but hope the buyer has some funds on the side because even if your car is perfect, things can break!

PenFed uses NADA guide for their loan decisions to my knowledge but I do not know if exceed 100% of a given value.

[Ab28]

Originally Posted by WWM3

PenFed uses NADA guide for their loan decisions to my knowledge but I do not know if exceed 100% of a given value.

Hmm, has it always been that way?

My cousin bought (borrowed) a heavily modded Mustang for well over book value and that never even came up.

I suppose it can be case by case depending on the borrower.

[WWM3]

Originally Posted by Ab28

Hmm, has it always been that way?

My cousin bought (borrowed) a heavily modded Mustang for well over book value and that never even came up.

I suppose it can be case by case depending on the borrower.

You could be right. Maybe they changed their policy. Either way I know for certain that they previously utilized NADA guide for the basis of their auto value decisions.