If you wish to get a classic car, there are different ways to get financing. This loan is taken to purchase classic cars, which cannot be easily covered by a regular car loan. Regardless of what type of classic car you would like to get, it can be obtained from different lenders. Buying a classic car is a good investment because it appreciated over the years, making it a valuable possession.
While car loans are taken to finance car buying, most lenders do not offer them for classic cars. Because classic cars are much older than the average car purchase, they may not qualify for a traditional car loan. For this reason, it is important to check with the lender if they offer loans for classic cars. To find a suitable option, you will have to search with different lenders to find one that provides financing.
How Can I Get a Loan?
Now that you are ready to fulfill your dreams of owning a classic car, proceeding with taking a loan should be the next option. As long as the right process is followed, it is easy to get financing. However, to qualify, you should:
Review Your Credit Score:
Generally, credit scores determine whether or not you will be approved for a loan. Most lenders require borrowers to have an outstanding credit score, while others allow borrowers with a certain credit score to apply.
Determine a Down Payment:
Some lenders require borrowers to make a down payment to qualify. It is important to confirm how much down payment you can afford to pay.
Search for Lenders:
Different lenders offer car loans for classic cars. Create a list of these lenders and compare their rates and terms for the best you can afford. Some lenders with competitive rates include:
- DCU Banking
- Woodside Credit
- Collector Car Lending
- Star One Credit Union
- LightStream
- Best Banc & Co.
Consider Specialized Car Insurance:
Most lenders require borrowers to show proof of insurance before loan approval. Due to this, you will have to search for an insurance company that offers coverage for classic cars. However, compare the rates of these insurance companies to find the best possible rates for your budget.
Consider an Alternative:
Just in case you cannot get financing, taking a personal loan for classic car funding is an alternative you should consider. Some personal loans are unsecured, which means you do not have to provide collateral. However, stay aware that unsecured loans have higher interest rates than secured loans because they do not require collateral.
What Credit Score Do I Need?
With a credit score of 600+, unlock opportunities for financing your dream classic car. Some lenders require borrowers to have a credit score of 800 and above to qualify. However, lenders who require lower credit scores tend to have higher interest rates.
Is it Harder to Get a Loan?
The only difficulty in getting financing is finding the right lender. Most traditional lenders do not offer loans because they are furnished to accurately assess antiques, exotic cars, or collectibles.
Interest Rates
Depending on the lender, interest rates are different. Factors like the car make and model, loan amount, income, and credit score influence the rates borrowers receive.
Am I Eligible?
Whether or not you are eligible depends on the requirements set by your lender. While each lender has different requirements, the common requirement is an excellent credit score, income, and classic car make and model. Before applying, it is important to check the lender’s loan requirements to see if you are eligible.
Are These Loans the Same as Traditional Car Loans?
Loans for classic cars and traditional car loans work the same way. Indicate that the loan is for a classic vehicle, distinguishing it from a standard auto loan. This will determine the interest rate and the amount you can borrow.