If you are considering doing a little classic car financing, it is recommended that you choose a lender who deals with classic and collector cars. If you choose a financing company who specializes in older model cars choosing an expert will allow you better interest rates, and longer loan terms if needed.
It is always recommended that you shop around when it comes to classic car financing, after all we are talking about a rather substantial investment. By going to a traditional financing company you are risking the chance that they will look up your car in the NADA price guide or the Kelley Blue Book for your make and model of car and as you probably already know - that will not be a good thing for you.
If you have original parts on your car, specialty lenders will recognize this. Lenders that specialize in this area may also extend their term of the loan, in many cases they have been known to issue loans up to 12 to 15 years. Traditional lenders will only issue a loan up to 5 years.
Just like in most loan situations you should verify your credit rating before applying for a classic car financing loan. If your FICA score is about 600 or lower, you might have a little difficulty attempting to get a loan. This is not a problem I have included a source for you - go here a get a copy of this credit repair kit. It will walk you step-by-step on what you can do to repair your credit starting today. If you find that your credit is above 620 you should not have any problems when attempting to get a loan. However if it is under 700 you will be facing a higher interest rate, depending on what the market is doing at the time you apply for a loan.
Most specialty lenders do not require that you already have a specific car in mind before applying for a loan. The buyer normally has 30 to 60 days to find a car after being approved for the loan. If you do not find a car within the specified time frame you may have to go through the loan process all over again.
I hope this article will help you on your quest to finding good classic car financing. |
