Where to Shop for a Classic Car Loan
Before the Internet, it was difficult to find a lender that was willing to finance a loan for a classic car. However, now that the internet allows you to reach lenders from all over the country, it’s much easier to discover a lender that specializes in classic car loans. This article will explain the best places to shop when searching for a classic car loan:
Online
As I mentioned before, it’s much easier now to get approved for a classic car loan because you can find a specialty lender online. Specialty lenders deal only in classic car financing, so their interest rates will be more reasonable than those of a traditional lender. Additionally, they will have a good idea of what your car is worth, so you won’t need to provide extra documentation to prove the car is worth the amount you want to finance. Another benefit to borrowing through specialty lenders is that they are more likely to allow you to borrow an amount greater than the worth of the car in order to make improvements or for restorations.
Your Personal Bank
If the idea of borrowing money from a company online bothers you, you might consider shopping for a classic car auto loan through your personal bank. If you have a relationship with your bank, they’ll be more likely to work with you in finding financing for your purchase. However, because banks normally approve financing for new cars, their interest rates on a classic car loan are likely to be higher than those of a specialty lender. Additionally, you’ll need to provide extra paperwork in order to prove that your car is worth the amount that you’re borrowing. The blue book value of a 70-year-old car is going to be next to nothing, so you’ll have to prove that either its improvements or its restoration has raised the value of the car. Proving this will make your loan less of a risk to your lender, so it’s better to arrive at the bank prepared.