Classic Car Financing

[jtmader]

Anyone have experience with financing their Classic car? Any good financial institutions out there that any of you have dealt with? Some references would be much appreciated. Thanks.

[Willoughby Z]

I purchased WILBY Z with cash from a signature loan from my credit union. It wasn't the lowest rate but it was quick. I suggest starting with your bank.

Here are some other specialists ( found with a Google search):

http://www.fossilcars.com/resources/classic-car-financing

[Hardway]

Local credit unions are your best place to start. If you are buying from a dealer and are within the NADA or KBB value then its usually no big deal depending on your credit. If you are buying any classic car from an individual many credit unions and banks will want an independent appraisal to determine the true value at your cost of course. I ran a quick classic car NADA look up on my '72 240z, low retail shows = $7,625, avg. = $13,650, high = $23,400. This is of course considering the car is in excellent condition. Don't bother trying to get a loan on a project car. As Wil said above, a signature loan maybe your only option in some situations. but the interest will be higher.

A real world example I can give is about 2 years ago I bought a '81 Corvette from a Ford dealership. It had been modified/upgraded but was in good shape. The car booked for $21K so my CU had no problem with a $8900 loan. The kicker, got it at 1.9% for 4 years. I have great credit and have been a member of this CU for 4 years and always did direct deposit in to my account.

[Dreco]

definately start with a credit union. Just make sure of the limitations. Some won't finance a vehicle thats over a certain year or mileage.

[SteveJ]

IMHO if you have to borrow much for a "classic car", then you should strongly consider holding off on the purchase. Save your money. If you research the value of Z cars as opposed to the interest you flush down the toilet, you will profit from your delayed gratification.

I've attached a chart of how much a $10,000 and $15,000 loan would cost you. I got the rates from the US Senate Credit Union only because it was the first hit in Google. If you can't afford much of a payment, then your rate will go up, and you end up paying a lot more for your car.

Signature Loans.pdf

[IdahoKidd]

I'm with SteveJ. Classic car, TV, lawnmower, whatever. If you can't pay cash for it, you can't afford it. Buying the car is only the beginning of the spending of money.

[Carl Beck]

Anyone have experience with financing their Classic car? Any good financial institutions out there that any of you have dealt with? Some references would be much appreciated. Thanks.

I think you might get an answer to your question - if you ask Hagerty. Thinking of a V12 Ferrari or a Cobra perhaps??? Or thinking of just leveraging the present collection? Great time to take some equity out of the Classic Cars and buy a Winter Retreat here in Florida.

FWIW,

Carl B.

Edited July 18, 2012 by Carl Beck