Q: Where to get a loan for pro star mazda formula purchase? The formula cost around $100,000. What type of a loan would it be, business or personal? I have no house so it cannot be an equity loan.
A: The car and basic equipment will add up to about $100k, that is correct... but that will leave you no money for entering races and the costs of campaigning for a year... which will likely be another $20-30k for mid to back field. The fact that you are asking about this suggests you will not have much of a chance of getting such a loan, but: If you have a business plan and intend to make a profit, then you might be able to get a business loan. But again, if you are asking this, you do not have the needed sponsorship lined up or the team or possible drivers that would put you in a position to make a small (very small) amount of money doing this... so it would be an unsecured personal loan (given the nature of a race car, it's not likely that many lenders would consider the car itself or equipment as security for such a loan). The main question you will have to answer will be how you expect to pay it back? Can you afford the $20k/year to campaign the car, and another $30k/year in loan repayment? If you can afford that, then check with your bank about loan rates and how much they can offer... if you can't afford a spare $50k per year, then you should likely look into a different form of racing, though if you are set on Star Mazda Pro, you might want to consider renting the car for the races you plan to run (I would expect car and related support will probably be in the $8-12k/race weekend area, plus any costs for damages you cause).