So I am looking to pick up a fairly heavily modified JKU. I am concerned about what the credit union will say since the asking price will end up being significantly more than any condition blue book value. For instance, KBB ranges are in the $22k - $26k range for a 2010 stock JKU Sport, but the final negotiated price from the private seller will probably be $40k ish. On the loan, I would probably cover $10kish with cash, but that could potentially still leave a spread of as much as $8k.
Does anyone have any tips, tricks, experience they can share on how to get some of the modification value realized? Is this a non-issue and the bank will already add extra value? I'd rather know what to expect going in so I can prepare properly. Thanks

 

Wow... that sounds like a bunch for a 2010. Does the thing have a V8 conversion and 1-tons?

Even if the vehicle is excellent condition and so $26K that leaves $14K worth of mods. Friends that deal in vehicles tell me the usual markup for the mods on a used vehicle is 25 or 50 cents on the dollar. These two fellows, one a car guy and one a jeep guy actually know the market and so will vary their markup based on the quality and type of mod.

Good luck with your purchase.

 

Most banks and Credit Unions will go for somewhere between wholesale and retail value for a stock vehicle. Depending
on your credit situation. They are and will not be concerned about the value of aftermarket items on the vehicle because
the added value is only important to the seller and the buyer. Things like lower miles will add to the value more than
aftermarket accessories will. Be prepared to lay out more out of pocket for these accessories.

 

Thanks Harry, kind of what I was afraid of. No thoughts on how to get some mod value realized?
Jedg, it has a RIPP supercharger, RIPP headers, ATS diesel tranny, aftermarket sound system, je reel driveshaft, king coil overs, beedlocks, pic hydro assist, arb lockers, 5.38 gears, DYNATRAC 60s, etc. pretty much fully loaded with 50-70k in aftermarket mods. Plus undercarriage lights!
I'll still try and push for upper $30s but seems pretty reasonably priced overall.

 

I tend to agree with Harry here. I'm not in the auto loan space, so I'm not speaking from a perspective of expertise, but I wouldn't count on a lending institution seeing much value in any aftermarket mods. I believe the main issue with that is from an insurance perspective. If you run out and total that jeep, Insurance won't do a whole lot to help with aftermarket mods.....and the lender needs the assurance of insurance coverage to make sure they don't lose money on the loan should you total it....as the vehicle is their collateral.

I'd expect any additional amount over book to be a minimal amount like Jedg suggests. I'd even think for a bank, 25c on the dollar would be hard pressed. When dealing with a brand new vehicle modded from the dealer, I think it's easier to slide a lot of that stuff by, but not near as much in a private party transaction. In that case, it would require you to make up the difference in out of pocket cost.

 

Take it and get it appraised, bank my cover it if appraisal comes in high.