Here’s How You Can Get A Classic Car Loan

Classic cars are not only great to look at but they can also be a good investment since their value usually increases over the years. However, you should remember that not all lenders will finance older vehicles. This makes it especially challenging if you want to purchase a classic vehicle on loan. That said, here are some tips to help you get an auto loan to finance your classic car purchase.

1. Check your credit score and report: Your credit score can play a big role in whether you get approved for a loan or not. Most lenders that offer loans for classic cars will require you to have a good credit score. So, ensure you assess your eligibility for the loan by checking your credit score.
2. Make a down payment: The more you are willing to put down as down payment, the better are your chances of getting approved for a loan. Typically, most lenders will require you to make a down payment of between 10%-20% of the purchase price of the car.
3. Shop around: Make sure to compare the terms, rate of interest, and fees charged by different lenders before you zero in on a particular loan. The better the terms of your loan are, the more you will be able to save during the loan term.
4. Consider getting specialized car insurance: It can help to get quotes from insurance providers that offer coverage for classic cars since lenders may require you to get insurance for the car.
5. Apply for a personal loan: If you are unable to get an auto loan, a personal loan is your next best bet. Personal loans are unsecured loans and may have higher interest rates than auto loans. However, they also have fixed repayments over a certain period of years. Since you are not required to put up any collateral, it’s usually easier to get quick funding with a personal loan.

Getting an auto loan for a classic car is not as easy as buying a regular car on loan. Your funding options are also likely to be more limited since not all lenders will offer loans for older cars. If you are unable to buy a classic car on loan, it’s best to save until you have enough money to buy the car by making a full cash payment.