Purchasing a Classic Car – Things to Consider Having possession of a classic car is like a dream that many car lovers would like to turn into an actuality. However, some people wait until they retire or achieve financial freedom to purchase a classic vehicle, while others simply choose to have their purchase funded with the money they have inherited. However, chances are that at this stage, neither you have gained financial freedom nor have you got any congenital fortune, but your love for classic or collector cars is strong enough to push you to step forward and have the vehicle. So, if you have made your decision to get your hands on the classic wheels, you can opt for financing a classic car. But before you get more tempted by this idea, there are some things you need to understand. There is a big load of difference between purchasing a classic car and purchasing a new daily commuter vehicle - they are not same and neither is the process of financing them through a bank. With a typical new car, one can easily determine its value by looking it up in a price guide, also its depreciation can be easily calculated due to age and miles. On the other hand, a classic or collector car is quite different as determination of its value includes many factors like
how rare it is, what other options are available on the vehicle, Has it been restored or is it all original parts, etc.
The problems with the classic car loan process arise because a typical lender may not know how to go about properly calculating the true value, making you pay higher interest rates or causing other problems with the loan procedure since they don't understand the true value of the car being purchased. Therefore, the most feasible way to manage this is to engage with specialty classic car lenders. However, unlike other car loans, here too you need to have a good credit score, otherwise be prepared to pay higher interest rates. Also, you need to be prepared with the down payment. Most lenders will require 20% - 30% down payment on the car depending on how hard is it to determine the value of the car, so be prepared for a lot of initial investment. After going through the loan process and falling in love with the car that you are willing to buy, the last thing you would want to know isthat you do not have enough money for the initial down payment. Also, do your homework about what car you want to buy before applying for classic car finance. Knowing these things beforehand is important. If you don’t want your classic car purchase to be a painful experience, it is advisable to shop around with specialty lenders. You can reach many reputable companies with a simple search online. Or for any other information regarding financing a classic car, you can visit the most trusted name in the business: www.woodsidecredit.com ABOUT THE AUTHOR Rachel McAvoy is an expert in vehicle loans and recommends Woodside Credit to be the number one name to trust for Tesla financing and other car finance products. You can read her articles and blogs to pick out the best way to finance your dream car.
Published on Feb 17, 2017
There is a big load of difference between purchasing a classic car and purchasing a new daily commuter vehicle - they are not same and neith...