Explore Car Financing Options for Classic Cars

Explore Car Financing Options for Classic Cars

When it comes to buying a classic car, financing can sometimes seem intimidating. If you’re just starting out researching how to best get the car of your dreams, you may be feeling overwhelmed by all the different options available. Fear not, because in this article you’ll find everything you need to know about car financing for classic cars.

What is Classic Car Financing?

Classic car financing is a specialized type of auto loan meant for classic car aficionados looking to purchase a vintage, exotic, or simply classic car. If the vehicle is older than ten years, the owner may not be able to qualify for a traditional auto loan with a bank. To get around this, car enthusiasts may take out a classic car loan to make their dream purchase a reality. In general, there is more of a focus placed on the value of the car than with a traditional loan, as classic cars will typically retain, or even appreciate in value over the life of the loan.

Popular Vendors & Rates

Hagerty has compiled a list of some of the best classic car financing options to use when shopping for vintage cars. Some of the most popular lenders of classic car financing include LightStream Auto Loans, SoFi, Earnest, and Exeter Financial Corporation. LightStream auto loans offer interest rates from 5.99 to 19.99 percent, while Sofi offers rates from 8.99 to 25.81 percent. With Earnest and Exeter financial, customers can expect interest rates of 5.99 to 17.89 percent.

How to Qualify for a Classic Car Loan

Most classic car loans require customers to have a verified source of income or steady employment for at least 12-24 months. Customers must also be at least 18 years or older in order to qualify for a classic car loan. Additionally, the borrower must provide two years of tax returns and two years of job history to the lender. Borrowers may also choose to set down a collateralized deposit to prove to the lender that they are serious about repaying the loan. These collateral payments may vary depending on the give lender and the amount of the loan. Finally, customers may have to submit additional documentation to qualify, such as bank statements, credit reports, and proof of residency.

Once a customer meets these minimum requirements, the lender will evaluate the car to determine its value, take into account the borrower’s credit rating and job history, and formulate loan and repayment terms that are agreeable to both parties. Once the terms are established, the loan will be approved.

The Bottom Line: Classic Car Financing Options

Classic car financing is a viable option for car enthusiasts looking to make their dream purchase a reality. With a variety of lenders offering classical car financing to numerous loan amounts, obtaining the perfect classic car may be closer than one thinks. With competitive rates, it might be a good time to take advantage of classic car financing. As long as a customer meets the requirements, opportunities to purchase a classic car may be right around the corner.