Classic Car Financing – 3 Things to Consider
Everywhere you look you can find evidence that the classic car investment trend is on the rise. Just take a peek at all of the big classic car and vintage car websites around. Or, channel surf around all of the TV shows dedicated to classic cars. And, check out the hundreds of active car clubs around the country: there is at least one dedicated to every type of out-of-production car you can imagine.
Tastes in classic cars vary widely from person to person, of course. Some people go in for the 60s and 70s American muscle cars. Others have a thing for older Porsches, MGs, or Mercedes. There are of course some older Japanese cars that have attained collector status. And some people go back even further, taking an interest in the first cars ever made, like the Model T.
Whatever your taste, unless you have gobs of extra cash under your mattress or in the bank, you are going to need to take out a loan to finance your new purchase.
Of course, when it comes to financing, the lender is going to want to make as much money off of the deal as possible – while still landing you as a customer. In other words, they don’t want you to walk away and go to someone else for your loan!
3 Things to Consider for Classic Car Financing
Just the thought of cruising down your favorite strip or sitting in your car proudly on a sunny Saturday afternoon while it is parked in your driveway can be enough to motivate any true car enthusiast to make it happen. And while excitement is a wonderful thing, to get yourself the best financing deal you can, it is a good idea to play the financing game as smartly as possible. Here are 3 things to consider:
1. For Most People, Classic Cars Should be Purchased for Pride of Ownership, Not as Investment: Unless you are an exceptionally knowledgeable person about the car you plan to purchase, it is probably wise to treat it as a pride-of-ownership purchase, rather than as an investment. More than a few people have lost their shirts in trying to buy a classic car and “flip” it fast on the market because they did not have the background to know what they were getting into.
2. Put Down as Much Cash as You Can: The more money you can manage to put down as a down payment, the lower your loan amount will be. With less money borrowed, you will not only enjoy lower monthly payments, but you will also pay thousands less in interest over the life of the loan.
3. Consider Multiple, Competing Offers: It is extremely tempting to settle on the first financing offer you get. But, try to avoid that temptation! Make sure to contact at least 5 lenders. The extra hour or two of time you invest now could is likely to help you land the best-possible financing deal.
Getting yourself into a classic car can be a lot of fun. Follow these tips to make the financing part go as smoothly as possible.