Facts About Classic Car Loans

by Kevin Seals

It may be your dream to purchase a classic car , but you may have trouble finding the best car loan. Classic cars present a unique challenge, as it can be difficult to find a loan for an older car. Finance companies and banks typically provide different terms for new versus used cars, not taking into consideration that a classic car is much more than a “used” car.

If you are just starting your shopping for a classic car, the first place to start is by looking for a loan. Contact your current bank or finance company, if you already have an existing relationship, to see what terms and conditions they offer for classic cars. Make sure the car will be viewed differently than just being labeled as a used car, as a classic car will have a higher value than indicated by just the year and model. After you have researched what your bank can offer, start shopping online or by phone with companies that specialize in classic car loans. There are a number of companies that recognize antique, exotic, classic, muscle, or hot rod cars as being unique, offering longer terms and lower rates than typically offered by banks for used cars. These companies are knowledgeable about the classic car market, helping you obtain financing for most cars, even those dating back to 1900. Companies who specialize in classic car loans understand that you may not have located your dream car yet, that you are simply obtaining pre-qualification before you shop. Once you are pre-qualified, you will usually have 30 to 60 days to find your car, without having your pre-approval terms change.

If you are working on your classic car, your car’s value will change over time. Make sure you periodically review your car’s current value with both your insurance company and your finance company. When your car’s value increases, you may be able to renegotiate the terms of your loan to get more attractive financing.

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