The march is similar to getting a lend for any other vehicle, but you ’ ll want to look for a lender that offers financing for a classical car .
How to finance a classic car in four steps
- Check your credit score. Before you start applying for financing, check your credit score to get a sense of the rate offers you might receive from lenders. You may be able to improve your score and, thus, the APR offers you receive.
- Find a classic car lender. Classic car buyers often use specialized classic car lenders that will properly value a car that could be older than the owner. You can also shop for rates from traditional auto lenders to make comparisons
- Make a down payment. A down payment lowers the amount you finance — which reduces your monthly payment and the overall cost you pay for the car, due to paying less interest. Classic car loans may be structured with down payments up to 20%, while other lenders may not require a down payment.
- Buy car insurance. Every car must carry some level of car insurance, depending on where you live. For your collector car, you may need specialized classic car insurance. Traditional (or stated-value) car insurance is based on the market value of the car, which may not take into account the actual value of an older car or the extra costs to repair it. Collector car insurance, on the other hand, is based on an agreed-upon value. You can get lower premiums by limiting the miles you drive the car each year, though you can also insure it for daily driving. The insurance may also provide roadside assistance, which could come in handy with an older car.
Alternatives to classic car loans
There are early ways to finance your classical or older used car that could be better alternatives depending on your fiscal situation .
You might be able to use a personal loanword to finance a classical cable car. A personal loanword is based on your credit score and income, and may have lower rates than early forms of finance like a citation calling card. A plug personal loanword could use your authoritative car as collateral, while an unguaranteed loanword doesn ’ triiodothyronine use collateral but may have higher rates.
Read more: A step-by-step guide to identity theft
Home equity loan
You could besides consider a base equity loanword for classic car finance. A home equity lend is a loan that lets you use the fairness in your home for early purposes. You ’ ll receive a specific sum of money, which must be repaid during a fix term .
A home equity loanword may enable you to finance a more expensive car than you could with an car lend or personal lend, depending on the equity in your home. however, if you don ’ deoxythymidine monophosphate give this loan, your family could be repossessed. Use an car loan calculator and a home fairness loanword calculator to compare the options .
Classic car lease
rather of buying a classic car, leasing one could be another option. Like any early car lease, classical cable car rent payments are based on the value of the car at the end of the rent. When the lease expires, you can buy the car outright ; sell it or trade it in and pay off the lease value ; or roll over into another lease. You may be able to afford a more expensive classical car and have less money invested without a down payment, as you might have to with a loanword. You could besides get shorter terms or change cars during the lease to enjoy different classics.
Frequently asked questions
Is it harder to get a loan for a classic car?
Depending on the old age of the car, you may have more fortune with a specialized classic cable car finance party than a traditional car loan .
How long can you finance a classic car for?
You can finance a authoritative car for up to 15 years with some lenders .
What credit score do you need to buy a classic car?
Like any other finance, the best rates are offered to those with a FICO sexual conquest of 661 or higher, considered a prime credit sexual conquest .