When it comes to realizing a dream car, for some of us we need the assistance of classic car loans. There are some, who believe that if you can’t afford to buy a classic car outright then you should be buying one at all, but we are not here to discuss different opinions but rather what types of classic car loans are available for those of us who need options.
In the following article we will discuss different ways to finance a classic car with current available options:
1. Classic Car Loans: There are loans specifically meant for collector classic cars. Typically we will not see large lenders dabbling classic car loans, so this product is left to niche lenders. These loans typically have prerequisites of what type of vehicles they will finance and offer varying terms. Depending on the value they also are know to offer longer-term loans. With these types of loans they are known to require a down payment on the vehicle.
2. Credit Unions: This is probably one of the most desired solutions to financing a classic collector car. Credit unions typically offer extremely competitive rates and attractive terms in my opinion. From personal experience, I financed a collector car with a credit union and received the same fantastic interest rate and terms, as I would have if I purchased a 2-year-old car. The most important factor to determine first is whether they finance classic cars. To easiest way to find out if they do finance classic cars is to ask what type of vehicles qualify for their used car loan i.e. age, type, etc.
3. Personal Loans: This is probably one of the least desirable methods of financing a classic car, since it carries typically the worst terms, because it is considered an unsecured loan.
All of the above options obviously carry different required qualifications with credit, income, assets, etc. Please keep in mind also that Fahrcar.com does not endorse or represent any lenders and this article does not represent any type of financial advise and is merely opinion of the writer.
Since the real estate crisis other options to finance a classic car have become more difficult to obtain. In the early 2000’s home equity loans were a very popular method, but unfortunately these loans have become harder to obtain and less of a reliable source for classic car loans.