How to Get Financing for a Classic Car
Whether you are considering the purchase of a classic car as an investment item, a means of transportation or a slightly luxurious but well-deserved reward for a life well lived, it is now possible to get financing for your purchase. Although financing can increase the cost of a classic car significantly, financing a classic car may enable you to buy it now rather than to wait a year or two until you can better afford it.
Other People Are Reading
Instructions
-
-
1
Determine what you can afford for the purchase of a classic car before you seek financing, either as a lump sum or as monthly payment.
-
2
Consider waiting a year or two to acquire a classic car if it means you will not need to get financing. Hefty monthly payments may detract from your enjoyment of a prized possession, or force you to work so much to make the payments that you have no time to enjoy the car.
-
-
3
Use the list of lending institutions at BuyClassicCars.com to identify lenders that provide financing for classic cars and other specialty vehicles (see Resources below).
-
4
Select the car you wish to purchase and determine the likely price at which you will be able to negotiate a deal.
-
5
Apply online to one or more of the listed lending institutions to obtain a classic car purchase loan. The amount of financing that you will be able to obtain will be based on the lender's determination of the fair market value of the car for which you seek to get financing.
-
6
Consider alternative borrowing strategies to finance a classic car, such as borrowing against your home equity or a retirement plan such as a whole life insurance policy. Such loans may offer more favorable interest rates than lenders that specialize in financing classic cars.
-
1
Tips & Warnings
Beware of getting in over your head. Financial advisors generally tell their clients to finance long-term necessities such as housing and transportation, but to avoid going into debt for luxury purchases.
Be careful about submitting multiple loan applications online or elsewhere. It may be appealing and seemingly easy as a way of shopping for the best credit terms and interest rates. However, making multiple simultaneous credit applications can cause your credit rating to fall if it gives you the credit profile of someone who may be overextending himself.
