Obtaining classic car loans can be a tricky business. The options are owning or leasing, but a muscle car loan usually has certain requirements. This is because of the value of classic cars.
Classic car loans can be for 100 percent of the value of the car, but there are usually qualifications. The institution granting the loan will want the applicant to have enough for a down payment of 10 to 20 percent. The loan will be generally be for a minimum of $6,000 - not surprising, as classic cars are expensive. When the loan has been paid off the vehicle will be all yours to do with as you wish. In most instances you'll find no pre-payment penalty if you pay the loan off early, although that might vary.
The alternative to classic car loans is leasing. Under this you pay a fixed amount each month, sometimes with no down payment other than a security deposit. There will be sales tax on the monthly payment.
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The difference comes at the end of the lease. You will owe for any damage to the vehicle, and you will have to pay for any mileage in excess of that allowed by the lease. Classic car leases are a classic car advance, and once everything is paid, you hand the car back; you've merely paid for its use. Some classic car lease companies will allow drivers to change to other cars during the term of the lease, which can bring variety, but always at a price.
