Buying Your Own JDM Car Part 3: Money Makes The Wheels Go Round
Okay, so you've picked a car. How do
you pay for it? Of course, depending on where you found the car and
who you're buying it from the manner will vary. It could be a matter
of dropping off a cashier's check at the importer's office like I did
or you might have to do a bank transfer to an overseas seller. The
seller, importer, or broker will arrange the payment method.
However the money is sent, first you
have to HAVE the money and this is a part people don't often think
about with these JDM cars. You can't finance them through
traditional means. You don't have a room full of sharks like the
one at your local American car dealership that are just licking their
chops at getting your signature on a loan. YOU have to secure your
own financing unless you have the cold hard shimoleans saved up
already.
If you don't, it's still not
impossible. Some companies like jjbest.com offer collector car loans but they demand
good credit and probably won't approve of your Japanese treasure if
it's not titled in the US yet so they're no good if you're importing
the car still. Great for an American GTO, not so much for a Japanese
one (It may be an option for a landed car that's already titled though). Personal loans from traditional institutions like banks and
credit unions can be used but usually they have a vomit-inducing
interest rate. There are certain non-traditional institutions however
that offer low-rate unsecured (i.e. no lien or collateral) loans like
Lightstream.com. You have to have stellar credit though. If you can
get a loan from them however for a used car (which a JDM import is,
they don't care) the APR can be just as good or better than any
typical new car loan – like 1.99 percent versus double digit APRs
for a traditional unsecured loan.
Weigh your financial situation
carefully. Remember, a JDM car is not a necessity but if you've got
the means, have a solid roof over your head, kids (or dogs, cats, tarantulas, blow-up dolls or whatever) are well-fed, and
an oversized man with a baseball bat and an unhealthy obsession with
your fingers isn't at your door, go for it if it's your passion.
Having talked about money, how much
does a typical R32 Skyline cost? That's a tricky question of course
since there's no Kelley Blue Book for these cars because they were
never officially sold here. The only way to get an idea is to check
various seller websites and look at the prevailing prices.
As of this writing, GT-Rs are going for
$15-25 thousand or so after importation and of course, depending on
condition and modifications. The less desired rear-wheel drive GTS
coupes and sedans are much cheaper, ranging from about $7-12 grand.
Nismo GT-Rs are another matter since
only 560 were ever made versus tens of thousands of the other R32s.
Currently Nismos go for about $23K all the way up to $50K+ for a
well-cared-for example.
Prices of course are going to fluctuate
as time goes by depending on simple supply and demand. It's hard to
be exact but it's fairly safe to assume that simple economics will
cause prices for non-special edition R32s to go down over time as
more and more become eligible for import with each passing year.
Limited edition cars like the Nismo and N1 however are probably going
to go up since only a small number were made and the racing
connection makes for greater collectability.
A good barometer for how the US market
might eventually stabilize is the Australian market, where R32s have
been legal since they were first produced. There, Nismo's and N1s are
valued at $45-70 thousand or so for really good examples versus about
$25 grand for a good “regular” R32 GT-R.
Ultimately, like any car, an R32 is
worth what people will pay for it. The more demand there is, the
higher prices will stay.
However much you can or want to pay, remember to budget for basic maintenance and upkeep. Keep in mind that even a “pristine” R32 is still a 25-year old car with a likelihood of having problems any old car can have. Even if the motor is solid, weatherstripping often cracks, AC components crap out, and carpet and seats get worn and stinky. Most cars likely won't come with meticulous maintenance records so at the very least you'll want to spend on basic preventative maintenance like swapping the fluids, changing spark plugs and belts, possibly swap the water and oil pumps, the list goes on.
However much you can or want to pay, remember to budget for basic maintenance and upkeep. Keep in mind that even a “pristine” R32 is still a 25-year old car with a likelihood of having problems any old car can have. Even if the motor is solid, weatherstripping often cracks, AC components crap out, and carpet and seats get worn and stinky. Most cars likely won't come with meticulous maintenance records so at the very least you'll want to spend on basic preventative maintenance like swapping the fluids, changing spark plugs and belts, possibly swap the water and oil pumps, the list goes on.
Even well-kept cars can have issues just from being 25 years old - like aged window molding. Factor that into your budget. |
With my R32 for example, I've already
spent over a grand on basic preventative maintenance and I'm still
not done with it all and that’s with some of the work done myself.
That also doesn't factor in the cost of new tires to replace the
Jurassic era ones that were on the car. New synthetic oil, new oil
and fuel filters, new gear and diff fluids, new timing and accessory
belts plus timing belt pulleys – that all adds up quickly so make
sure you plan ahead. No use buying a pricey Skyline if it breaks on
you within a month because you couldn't afford the maintenance.
And that's it for this post. Next time
we'll go slightly off topic and talk about the funky Japanese used
car market that facilitates us getting these JDM cars. It's
definitely different from what we're used to here in the States and
it's not just from a lack of con artists and inflatable animals.
Comments
Post a Comment