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Old 01-12-2001, 03:16 AM   #1
Digital_Boy
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Member#: 730
Join Date: Jan 2000
Exclamation Full speed ahead on the turbo!

Well, the last hurdle was leapt today, as I signed off on an equity line of credit for my obsession!

I will have checks and a platinum card to do with as I please on Tuesday, so it's full speed ahead, and damn the torpedoes!

The equity line is actually pretty cool. It's based on the difference between the appraised value of my condo and what I owe on it. Since property values in my neck of the woods have shot up DRAMATICALLY over the past 4 years, I qualified for this much, even having done a zero down HUD reposession loan. The equity line is a second mortgage, and can be used exactly like a credit line for the first 5 years of the loan. I can charge it up, pay it down, whatever. At the end of the 5th year, it converts into a regular 2nd mortgage, and I pay it off for the remaning 10 years, assuming I have a balance. But, the big kicker is, all of the finance charges for the loan are tax deductible, since it's technically a mortgage. The minimum payment is 1% of the loan balance, so the max would be under $300/month, which I can handle. :]

I will be doing more than just buying toys for the Sube with this money too. I owe my mom a chunk, and I feel obligated to pay that back right off, since she's helped me out when I was bouncing between contracts, and before that when I first bought the condo. But, I will have more than enough to fortify the Scoob.

I'm amazed at how fast this is all happening. I never dreamt that I'd find a donor car, parts car in such a short span of time.
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Old 01-12-2001, 03:17 AM   #2
Eric SS
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Member#: 1914
Join Date: Jul 2000
Chapter/Region: SWIC
Location: 2013 335i, 2011 G37 coupe
Vehicle:
2000 2.5RS w/ EJ22T
swap and N20. gone. : (

Post

Oh Boy.. You are on your way to getting into debt early in life. Please make sure you want to do this! If so, Have fun!

Eric
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Old 01-12-2001, 03:25 AM   #3
Kostamojen
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Member#: 2272
Join Date: Sep 2000
Chapter/Region: BAIC
Location: haha XD
Vehicle:
2013 Subaru 599 :P
Galaxy Blue Sexy

Have a Nice Day?

Dept is bad!

Make sure you dont LEASE the WRX... Thats gonna make it even worse!
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Old 01-12-2001, 03:27 AM   #4
Eric SS
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Member#: 1914
Join Date: Jul 2000
Chapter/Region: SWIC
Location: 2013 335i, 2011 G37 coupe
Vehicle:
2000 2.5RS w/ EJ22T
swap and N20. gone. : (

Post

Why? I lease and I think it is the best way to go...

Eric
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Old 01-12-2001, 03:29 AM   #5
Digital_Boy
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Debt? Kind of. I don't owe a lot on my cars. Aside from my mortgage, I owe <$10K on everything. One credit card, one car payment (neon, refinanced it 2 years into the first loan, bad idea), and a signature loan that I got to get the donor Impreza. I make about $50K/year base, but with overtime that can go WAY up. Plus, I can use the equity line to convert the credit cards to tax deductible finance charges. I don't know if I'm going to go the full 15 years or not, but the tax deductibility does help ease the sting.
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Old 01-12-2001, 03:33 AM   #6
Kostamojen
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Join Date: Sep 2000
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Vehicle:
2013 Subaru 599 :P
Galaxy Blue Sexy

Post

Its borrowed time. You dont own the car, and if you wreck it, your f**ked with a lease (the Company insurance folks are worse than the regular insurance folk). Plus, if you decide to get out of the lease at any time, it costs you major $$$. (My cousin ended up paying an additional $2k on his 97 240sx to get out of the lease). And if you plan on modding, this is definatly not the way to go... (If the agents find out, your f**ked again). And, if you drive your car especially hard and far (my cousin had 50k miles in 2 years) it costs you even more...

Leasing is good if your not going to mess with the car, drive the car hard or far, or if you plan on keeping the car very long...

However, there are good leasing deals... but they are VERY hard to find. Buying outright or a loan is still better for 99% of the time.
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Old 01-12-2001, 03:39 AM   #7
Digital_Boy
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Kostamojen, there's a basic misunderstanding here. I am NOT buying a new WRX. Not for awhile, anyway. I may look at a 03 or 04 WRX Wagon, but right now, I'm building up a 1995 L into a WRX killer. I bought both donor cars outright, and have paid up front for all the parts that I have already, STi brakes, STi seats, HID's, DMS 50MM's, aluminum hood. That money is already spent. All I need now is money for the Motec, turbo and beefed up trans and diffs.

The equity line is a 2nd mortgage that thinks it's a Platinum Visa card. Only difference between this and a regular Visa card: I can take the interest and finance charges of this Visa off my taxable income at tax time because it's really a home loan. Interest on home loans is tax deductible, this is why home ownership is a Good Thing.

And for the record, if I ever buy another new car again, I will *NOT* lease it. I will buy it, hopefully outright for cash on the spot. If not, I can always use the equity line and deduct the interest. This is one way to have your cake and eat it too.

Imprezinator,

With the amount of work ahead of PacBell/SBC getting DSL service to 85-90% of their customer base in 13 states, I will get all the overtime I can dream of. I won't be in debt for long. And I do plan to put my slack time at work to good use and study investment strategies. I fully intend to have my money work for me from here on out.
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Old 01-12-2001, 03:49 AM   #8
Kostamojen
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Member#: 2272
Join Date: Sep 2000
Chapter/Region: BAIC
Location: haha XD
Vehicle:
2013 Subaru 599 :P
Galaxy Blue Sexy

Post

Oh whoops... My bad (Turbo does not = WRX )
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