We don’t just provide car loans for commuters or families. We also offer great deals on an auto loan for a classic car!
Most collectors prefer to pay cash for their classics but that isn’t always possible. With ever-rising prices and a vibrant classic market, finding a bargain classic car is now harder than ever before.
That’s where a car loan comes in. But can you use a car loan for a classic?
Yes you can!
Classic car loans
Mainstream lenders are often hesitant to provide car loans for classics despite that burgeoning market. Those lenders that do offer such loans tend to require large down payments and charge relatively high interest rates.
Lenders are slowly realizing how buoyant the classic car market is and are treating collector cars more like fine art or a wine collection. As an appreciating asset.
That evolution is slow and those lenders are few and far between right now though.
Dixie Auto Loans works with a wide range of lenders willing to consider lending in all kinds of situations. Including for classic or collector cars.
The good news is that the application process for this type of loan is largely the same as any other car loan. The lender may require a valuation or condition inspection of the vehicle, but otherwise, the application process is simple.
Applying for a car loan
If you’re financing a classic car, you’re going to need to be prepared to pay a larger down payment than usual but that’s all you’ll need to do.
Down payments are a normal part of car loans and are something you should be used to if you have financed cars before.
A larger down payment works in your favour anyway. It means borrowing less and a lower monthly payment so should make the loan cheaper to service. It should also insulate you from going upside down should the bottom fall out of the classic car market.
The rest is exactly the same as a normal car loan.
Check affordability, check your credit score, get pre-approved and check the market.
You will have to perform your own checks and own due diligence on the purchase before you buy though.
Depending on the value of the car, the lender may require an independent valuation. This is usually only for the more expensive end of the classics market but we have seen lenders request a valuation on $40,000 classics before.
Other than that, financing your next auto loan for a classic car couldn’t be easier. That’s especially true if you work with Dixie Auto Loans!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!