Classic car loans are as unique as the cars they are used to purchase, so it is important to look at a variety of loans and consider the individual terms of each loan as you decide what loan to take.
Step 1 – Consider a Specialty Lender
When comparing loan offers, be sure to add at least 1 loan from a specialty lender that deals in classic car lending into the mix.
You will generally find that standard lenders do not know about the value of classic cars, and will refuse to loan money or will loan only small amounts for hot rods, restored cars or other collectibles.
Specialty lenders understand values of collectible cars, giving you a faster loan process, lower interest rates and better terms.
Step 2 – Consider Loan Terms
If you get a loan offer of 3 to 5 years on a classic car, you will likely want to look for a new lender.
Depending on make, model and condition, some classic cars will have loans of up to 10 years. However, that is not necessarily better than a shorter loan, since the interest rates will be higher. As you compare offers, however, it is something to keep in mind.
Step 3 – Consider the Car’s Long Term Value
Look at other owners of similar cars as the one you are buying. See if the value is increasing or decreasing over time. Are the investment you are making and the loan terms you are considering wise considering the car’s value? While buying a classic car is often an emotional decision, be sure to pull back for an objective, practical view as well.
