Even if you have great credit, it can be hard to get classic auto loans as there aren’t many lenders left that offer the—in fact, many lenders don’t even know what they are. As the name implies, classic cars are a lot older than your typical used car that can be financed, so most conventional lenders aren’t equipped to deal with them.
If you’re lucky, you can go into your bank and come out with a classic car loan but in most cases you will need to find a different funding source. If you follow the strategies given here, you will find it easier to get the best car loan rates for your classic ride.
Classic cars are generally considered higher in value than a normal used car. Therefore, if you are looking for a loan to purchase a classic car you might want to find a lender that specializes in loaning money for vintage cars.
In looking for a specialty finance company for your classic car, you’ll find that there aren’t that many. They are out there but it will take a little searching on the web. Companies like Hagerty and J.J. Best have been in the classic auto loans business for many years and are highly regarded. These lenders offer competitive interest rates on classic automobiles, as well as motorcycles.
By going with a lender that understands the value of a vintage car you will be able to work with someone that knows how to place a correct value on the individual vehicle. Their expertise in this area may also allow you to secure a loan in a shorter length of time, a longer loan period and possibly a lower interest rate as well.
There isn’t really a price guide for classic cars, so these lenders know that it’s a buyer’s market and the car is really worth as much as someone is willing to pay for it. The unconventional way that a classic car’s value is determined is an important consideration when you’re trying to get a loan.
When you’ve found a specialty finance company to help you with your purchase, you will handle the application process in much the same way as you would with a conventional auto loan. Just as you’re shopping to find the best deal on your favorite car, you should compare quotes from different lenders and go with the one that offers the best rate. To get the best car loan rates, there are a couple of things you can do. Most lenders will lower the rate if you give a larger down payment. As interest rates are a measure of the perceived risk of the loan, as the down payment goes up, the interest rate goes down.
You can get a better interest rate by telling the lender that you’re shopping around. When the lender knows that you aren’t just going to accept the rate they offer you in the beginning, they’ll be more willing to work with you because they don’t want to lose your business. This strategy can work but having top-notch credit makes the negotiations easier.
Getting a loan for your classic car purchase can be hard but it is possible. It just takes a bit more time to find a lender. If you follow the tips above, the classic auto loans process should be a lot easier for you, and you’ll be on the road in no time at all.