Classic cars are not only eye dropping, and fun to drive, they can also be a good investment as their value tends to skyrocket over time and less and less of the specific makes and models become available. When looking at potential lenders it is important to note that due to the advanced age of most classic cars a traditional auto loan may not be available, however, there are still a plethora of options available which will be detailed in the forthcoming text.
It is important to first answer and define what a classic car is, for the purposes of this article a classic car is- within the car world, people tend to be a little picky when it comes to defining their cars some enthusiasts insist there is a quantifiable difference between the classic, antique, and vintage terms that are often floated around as descriptors- auto clubs and associations including the Classic Car Club of America (CCC) have pretty specific definitions when it comes to this sort of thing, according to the CCC classic cars are those that were built between 1915 and 1948.
Traditionally insurers have considered anything to be over 20 years old classic, under this definition many junkers would be considered classics, 1998 Honda Civic anyone? The key point is that there are many different organizations,/clubs/groups that define classic cars in their own way, without an absolute definition. We will consider a classic car any vehicle over 20 years in age for which a traditional auto loan does not apply. The importance of researching potential lenders can’t be understated and thorough research is highly recommended.
Throwing out the normal auto loan, what options are then available?
There are several lenders who specialize in exotic/classic cars. JBR Capital has a classic car finance program that caters to auto enthusiasts, offering clients monthly payments thru their hire purchase program which also allows you to buy the vehicle outright after the fixed rate of the loan expires. JBR also offers lease purchasing which typically lasts two to five years before it can be bought outright after a “balloon” payment.
Nowloan.co.uk compares car loans from dozens of lenders to ensure the best APR at time of application and increased likelyhood of recieving the loan.
Another potential lender right here in the UK is CarFinance2u which provides classic car loans thru a streamlined internet process; once on the website users can select how much they would like to borrow, and complete a subsequent application form before waiting to hear back from the CarFinance team, the website is extremely user-friendly which is a nice touch.
Applying for a personal loan is another option for financing the purchase of a classic car, with a personal loan it is important to note that there are a few legally mandated requirements which include :
You must be over 18 years of age and a resident of the UK you typically must already have an account established with the lender you plan on borrowing from
Additional non-legal requirements often imposed by banks include a thorough check of your credit history, thus good credit is vital. The bank you intend to borrow from will also want to ensure that you are in good financial standing at the time of the personal loan and are able to make regularly scheduled payments if you do not pass the bank’s requirement for either of these criteria you will be flat out rejected or subject to higher interest rates.