Classic Car Financing

When financing a classic car purchase, your bestoption, etc. that you will not find it in your area. The
option is to choose a specialty lender that deals withinternet can be a great tool in helping you find the
classic cars and collector cars. You will likely find aexact car you are looking for, but that car is
better interest rate, longer loan terms, and goprobably in another state or region, requiring travel
through less work than if you choose a typical lender.and transportation. You may want to travel to see
This article will show you how to finance a classic carthe car, which will cost money, and you will need to
purchase, and what pitfalls to look out for.transport it back if you do not want to drive it.
The main reason to shop around specialty car loanDepending on how far away the car is, driving it may
lenders is the less hassle you will have to go through.not be an option due to strict insurance restrictions.
These lenders deal with classic and collector car loansAll this may be able to be rolled into the loan amount.
all the time, and they can help guide you through theTalk to your lender about these options.
purchase. Standard lenders sometimes use Kelley BlueMany lenders require an inspection of the car by a
Book or NADA price guides for classic cars and thatqualified inspector. The lender will be able to help with
just won't work, especially for hot rods and otherthis, since they probably have certain inspectors they
customs or special editions. Having original parts andrequire you to use. Many buyers choose to have
other unique options on a collector car can add value,their car inspected before purchase anyhow, so
and specialty lenders understand this. Specialtymake sure you talk to the lender before deciding on
lenders can also extend the loan term, sometimes upan inspection company. If the inspector you choose is
to 12 to 15 years depending on the amount beingnot certified by your lender, you may be required to
requested. Typical auto lenders generally go up topurchase another inspection, costing hundreds of
five years.dollars more.
Before you even start the loan process, you willEven if you have the money saved to buy a
want to check your credit score. If your FICA scorecollector car outright, it may be in your best interest
is around 600 or lower, you may have a difficult timeto pursue a classic car loan. Over the last 15 to 20
getting a loan. Anything in the 600's and you mayyears, the value of collector and classic cars have
qualify, but you may have a higher interest rate.gone up sharply, sometimes 10% or more a year.
Anything above 700 and you should have noConsidering a classic car loan is probably 6% or so,
problems securing a loan, plus you will get the addedthis makes borrowing the money an investment. But
benefit of having a lower interest rate. Any lender willbe careful during these economic down times and do
require 20% down on a classic car loan, and usuallyyour research. Rare and original models are still going
30% for a hot rod.up in value, but clones and other mid models are not
Most specialty lenders do not require you to have arising in value as fast as they once did. This could
car ready for purchase before applying for the loan.change at anytime though.
You generally have 30 to 60 days after beingThere is no better feeling than driving around in your
approved to find a car, otherwise you may need tonew classic car. Hopefully this article will help you in
go through the approval process again. Whensecuring a low interest loan, and speed up the
determining the loan amount, do not forget aboutprocess so you can drive around town in your new
hidden costs of purchasing a collector car. Odds are,ride, rather than dealing with headaches you may
especially if you are looking for a certain model, color,have by going through a typical lending company.