Today we’re covering another customer question. This time it’s a little different from the norm as it’s not your usual everyday driver that someone wants to finance. The question was ‘Can I get a car loan for a classic car?’
The classic car market is huge in Canada. People buy classics to drive at weekends, as a hobby or as an investment for the future. Some classics appreciate in value, making them a good investment as long as you know what you’re looking for.
But can you finance one or do you need to pay cash?
Car Loan for a Classic Car
You will likely find out very quickly that not all lenders offer classic car loans.
A classic car is usually a car that’s 25 years old or more. There is no concrete definition as each organization has its own opinion. Some categorize classics as anything from 1948 onwards while others consider anything from 1900 to 1985 as a classic.
If you know what you want to buy, you can approach the classic car loans in the same way you would any other auto loan.
Check Your Credit Score
Before you do anything else, you should check your current situation. Check your credit score and make sure it’s as good as it can be. The higher the score, the higher the chances of getting a loan.
If your credit score could do with improvement, take the time to do that if you can. Your car loan could be cheaper and you could save a lot of money on interest.
Decide on the Down Payment
A down payment is an essential ingredient for a classic car loan. We recommend them for every type of car loan but they are almost mandatory for classics.
Some lenders require anything between 10-20% down payment. Others are more flexible but if you plan for that amount, you stand a higher chance of being accepted. By the way, we don’t require down payments! Click here to learn more about financing a car with no money down.
Consider Running Costs Before You Apply
Depending on your financial situation, you should definitely factor running costs into your calculations. A classic will need more maintenance and parts and tires may be harder to source and more expensive. Finally, specialist classic car insurance will likely be higher too.
All these things add up so it’s important to factor them into any calculation you make.
As long as you can comfortably afford repayments and have a good credit score, you should have no problems getting classic car loans.
Thanks for reading!