Classic cars get increasingly expensive as years go by due to their rarity, among other factors. This, among many other things, creates the need to finance one if you're in the market for a classic with a high price tag since some can demand a pretty penny. However, with many lenders having strict age limitations, financing a classic car can be a bit of a hurdle. What is considered a classic car? The term is subjective but commonly applies to cars older than 20 years. That's older than most lenders will agree to finance a car since the common age limit is around 12 years old, making finding a specialist lender necessary for classic cars. So, how do you finance a classic car?
Even with most lenders not offering loans for classic cars, some focus specifically on the unique aspects of classic cars. This could be a bank or credit union that understands the collector car market and tailors their loans accordingly, unlike most lenders, who may consider such cars risky due to their age or unpredictable value. J.J. Best Banc & Co. is one of the lenders you can turn to for classic car financing and is also America's oldest, largest, and most experienced car collector. They have the lowest interest loans available on the market and different financing options, meaning you're guaranteed to find something that works for you. Other top options include LightStream and Woodside Credit. However, LightSream has a lower maximum loan amount, capped at $100,000. On the bright side, their loans are kept unsecured to minimize upfront costs. On the other hand, Woodside Credit provides financing for cars with an appraised value of up to 1,000,000.
If you're looking for a straightforward way to finance a classic car, a personal loan is the most practical way to do it. The best perk is that, unlike auto loans tied to the car's value, personal loans are unsecured, meaning you don't have to use the car as collateral. Therefore, you maintain full ownership of the car from the start, eliminating the risk of repossession. The only major downsides of using a personal loan to finance a classic car are that the loan amount will depend on your credit score and financial standing, among other factors, and the interest rates will be higher than regular auto loans. The former means that the borrowing limit may not be enough to cover the cost of the classic car you want to buy.
Financing a classic car through hire purchase is one of the most common alternatives when buying a classic car from a dealer. It allows you to spread payments over time after paying a deposit. The payments are usually fixed monthly installments over a set term, and ownership of the car is only transferred once you make the final payment. That's the only major downside. This limits your ability to sell the car should you get a reasonable offer, which is expected with a classic car. Furthermore, failure to meet payments can result in the car being repossessed.
At Exotic Car Trader, you can finance the classic cars we have for sale through us. We take care of the entire financing process for you. From verifying the VIN to arranging inspections (if necessary) and managing all the paperwork, we ensure a smooth and hassle-free experience. Our financing solutions can accommodate buyers with previous bankruptcies, foreclosures, or repossessions, giving you a fresh opportunity to secure your dream classic. Getting started is simple. Fill out our secure credit application, and our team will work diligently to get you a lending decision as quickly as possible. We partner with lenders who offer financing terms of up to 144 months, providing lower, more manageable monthly payments. Plus, there are no pre-payment penalties, so you have the freedom to pay off your loan early if you choose.
Financing a classic car can be a complex process, but with the right approach, it's achievable. Understanding the unique challenges and exploring various financing options allows you to secure the funds needed to own your dream classic. Exotic Car Trader creates an exclusive and safe way of buying and selling cars, eliminating the daunting experiences of private selling for buyers and sellers. Every vehicle listed on Exotic Car Trader goes through a private seller verification process, ensuring legitimacy for our buyers. Also, Exotic Car Trader's car buying process is well outlined, with all fees and packages providing our buyers with a seamless and inclusive experience. We can handle the escrow of funds at no additional cost to the buyer and seller, and we also provide trade-in and financing options for buyers. For transaction safety, our Transactions Team is world-class and equipped with industry fraud detection tools to ensure a safe and secure transaction. These are just some of the benefits you enjoy when buying or selling on Exotic Car Trader. Contact us for listing services or to buy a car on Exotic Car Trader today.
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