financing a racecar?

[j dawes]

hey all,

 

i have a general question about whether banks/lending institutions are willing to finance racecars. not that this is the ideal way to get into racing, but i'm weighing my options. i'm finding that building a car is so time consuming [even to get the thing reliable as an hpde car] and more expensive than buying one that's already prepped and ready for the track. i bought a 166k mile 94 gt and find that i have very little time to wrench on it [radiator, suspension, electrical, exhaust, etc. all need work just to make it relatively comfortable as a daily driver much less get to/from the track].

 

the kicker though is i can afford a few hundred here and a few hundred there, but forking out 10-15 grand for a cmc car without help from the bank isn't really possible for me.

 

do i just not tell them it's a race car? are they just interested in year/VIN#/mileage/etc.?

 

obviously the risk is there if the car is totalled in an accident on track, but that's a costly risk no matter what. . . right?! and also obviously this would mean i'd go through HPDE with a racecar rather than a street/track car [i understand i'd need a truck and trailer as well].

 

thanks for any insight guys and gals!

 

jon

 

ps: don't know if any of you were at the CMC MidAtlantic party this weekend but it was a blast and was good to pair names and cars with faces and personalities!

[King Matt1548534716]

There are some financial institutions that specialize in this, Suntrust Bank being one, although I have no idea how it works. However, IMO it's a really bad idea to go into debt or owe money on a race car. For one thing, it violates the No. 1 rule of racing, which is don't race anything you can't afford to push off a cliff!

 

https://www.suntrust.com/microsites/SEG/motor.shtml

[Richard Pryor1548534703]

Jon...if you can't afford it, don't do it. Racing is strictly a discretionary income hobby. Notwithstanding the fact that I doubt you'd find a bank to finance a race car for you Matt brings up the most salient point in the argument against financing; ball up the car at the first race and keep paying for 2-4 years with no benefits. Any car financed is required to be street legal, licensed and insured. Not too many CMC cars meet that spec. And the banks generally lend up to 80% of street car value. What's a 94 Mustang worth? (no cheap shots here) Instead of going into hock I believe you still have several options. One is to rent a car as your budget allows. Spend $1,000 up for a weekend of fun (but be aware that your rental car comes with financial obligations if you ball it up...and smart car owners do not rent their cars to people who don't have the liquid assets to put up as a deposit in the event of a write-off). The most realistic way to be involved in CMC racing is to show up at the events as a member of someones support crew and/or volunteer to help out the group at the races by aiding in tech, grid, etc. CMC is only half on track fun. The rest is the social aspect that makes this class so unique and fun. Third. Put aside $400 each month into a CMC race car fund. In two years you'll have the money necessary to buy a good reliable car. There are some deals out there in good reliable cars in the $7500-$10,000 range. You won't win but you'll sure have fun. And if you can't afford $400 a month...well, save less and take a bit longer. If you decide at some time you really don't want to go racing, well, you'll have a great little savings account....RP

[j dawes]

so what you're saying in the subtext is be patient? heheheeheee. . .yeah, that's usually my problem in most areas of life.

 

thanks for the insights, guys. they actually confirm what i am already doing, which is basically what you've recommended. get to know the local CMC crowd, go through hpde, work the grid and maybe flag some, slowly build the car up as i can afford it, then when it's time to race i'll be ready!

 

and if, for some reason through luck, savings, or a windfall, i come up with a few extra thousand dollars maybe i'll just buy a racecar!

 

jon

[FBody383]

The most realistic way to be involved in CMC racing is to show up at the events as a member of someones support crew and/or volunteer to help out the group at the races by aiding in tech, grid, etc. CMC is only half on track fun. The rest is the social aspect that makes this class so unique and fun.

 

Jon,

 

I've been getting to know the Texas group for about a year now. It's given me time to read (re-read, then re-read, ask good/bad questions, re-read) the rules and get to know the folks. As close and competitive as this class is, it's nice to be able to like, as well as respect, most of them.

 

Looking forward to being a 2008 rookie.

[j dawes]

i find it interesting that from what i've heard and experienced, the cmc groups are one of the best groups to join, and it's usually because of the people not necessarily the cars or any other aspect. i'm continually amazed at the amount of time these guys and gals are willing to take to answer my questions and address my issues. with such great community and cameraderie, it's almost as if CMC stood for "Church of the Mustangs and Camaros"!!!

 

 

[hijack myself] just curious, but how long have you been into track days/racing? thanks [/hijack]

[Al F.]

I dont know if church is as accurate as cult! Most people that know about my involvement in racing think I'm nuts!

 

Matt and Richard are definitely speaking the gospel though. You can have a really good time hanging out at our track events even without a car. I did that for a whole year one time after I tacoed mine and was in the rebuild process.

[FBody383]

just curious, but how long have you been into track days/racing? thanks

 

I started autocrossing in college, circa 1988; always running the daily driver - even when it was a Toyota pickup. Over the years I've done several Evolution schools, a racing school and a handful of track days.

 

I've been wanting to get wheel to wheel for many years and now have the chance. I figure it will be easier to push an accelerator than to keep chasing guys in criteriums.

 

The criterium fields are bigger, but it's way hard racing.

[Redding CMCer]

Jon;

IMHO...and from experience...I purchased a nearly complete CMC Camaro last year for just over $3K. (I really wanted a Mustang but this was in my budget). I got used to it in HPDE and slowly adjusted the car to my liking, adding as I could afford. I concentrated on getting all the safety components done first. When I got the safety stuff done, and teched, I started racing. I haven't been that competitive yet and I'm still working on the power/torque thing. That said to say this...These deals do come along and you can get it done at relatively low cost. I have about $8500 into it so far including a $1K trailer and I am having a blast. However...and here is something I really didn't count on when I started into this venture...You really MUST get the best safety equipment possible! No cutting corners on this one at all! I have 2 fire suits...an SFI/1 which I bought first and now resides in the closet...and the SFI/5 I wear for racing. Good helmet, gloves, shoes, underwear, etc.

Don't make the mistakes I did and try to go cheap because it will always cost you more in the end. Check out the prices of everything you need to be safe and start your budget there.

As far as CMC, I wouldn't race in any other series. Everyone has been so supportive and helpful and have accepted a 54 year old rookie like I have always been a part of the group. If you find you can't afford to race now, come to the track and just hang out with the guys and girls. Guaranteed you will have a great time and learn a lot.

Good luck Jon and I hope to see you on the track sometime! Gary

[j dawes]

thanks again guys.

 

i first hit the track at VIR and Summit Point in my 2007 Mustang GT and DEAR GOD I'D LOVE TO TURN IT INTO A RACECAR. . . not gonna happen. it's super fun on the track, not so much on the street as i live in the city and it's just bumpity bumpity from one chuck hole to the next between stop lights. anyways. . .hence the 94 gt purchase for 3 grand.

 

before i even buy a single sticker, a tire, a racing anything, i'm gonna get a COOL SHIRT!!! those things rock, so i've heard. [ok, i'm exaggerating a little but that is high on the list].

 

thanks again for the input. i have a potential iron in the fire with an almost sorted racecar closer to my budget that just needs a powerplant and a stick to shift with. . . just need to reassess which route i want to take.

 

[Lady in Nomex]

Cool shirt good!