Antique cars, commonly referred to as classic cars, are some of the most sought-after cars in the automotive industry. But what qualifies a car as an antique, and how does that affect your chances of getting a loan for one? Most lenders usually have a model year limit for cars they can finance, with the most common limitation being cars not older than 12 years old. For a car to be considered an antique or classic, it has to be over 20 years old, meaning it's not that easy to get a loan for one. Can you get a loan for an antique car?
The answer isn't always straightforward, as it depends on the lender's loan terms. As mentioned earlier, due to age restrictions, most antique cars don't meet most lenders' terms. Why? For one, many classic cars fluctuate in value, making it hard to accurately assess a car's value and determine the appropriate loan amount and collateral. Plus, antique cars require higher maintenance costs and stricter insurance considerations. Both could impact the lender's ability to recover the loan if the borrower cannot afford maintenance or in case of an accident, damage, or theft. Despite the limited choices available, securing financing for an antique car is still possible.
The following are some of the ways you could finance an antique car:
If you're looking to finance an antique car, there are banks and credit units that offer options tailored to classic cars. J.J. Best Banc & Co. is a trusted name with years of experience in collector car financing, offering competitive rates and flexible terms. For a more convenient option, LightStream provides classic car loans with a virtually paperless loan process, making it a flexible choice for antique car buyers. Lastly, Woodside Credit focuses on financing high-value luxury and collectible vehicles as they have a higher borrowing limit, making it a great option if you're buying expensive rare or collector antique cars.
Financing through a hire purchase agreement can be a practical choice if buying an antique car through a classic car dealer. It allows you to spread payments over a fixed term, with ownership transferring to you only after the final payment is made. The only major downside is that since you don't own the car, you won't be able to sell it during the agreement term, which can be disappointing if an appealing offer comes your way.
Personal loans are another viable way to finance an antique car, particularly if you have a strong credit profile. A personal loan is unsecured, meaning it won't require collateral, and you'll own the car outright. However, it's worth noting that the loan will come with a higher interest rate than a traditional auto loan. Additionally, the amount you can borrow is typically limited by your credit score and income, which may not fully cover the cost of an antique car.
At Exotic Car Trader, you can finance the antique 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 an antique car can be tricky, but it's not impossible. Whether you go with a specialized lender, a personal loan, or a hire-purchase agreement, there are ways to make your classic car dream a reality. 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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