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    Classic Car Financing

    A lot of us would prefer classic models of Porsche, Cadillac, Chevrolet, or any other brand over modern-day models.

    The thing about these classic cars is that they represent time.

    Owning one such car can be a great investment, both socially and financially.

    Buying a classic car is no easy thing. There are quite a few hassles and the biggest of all is finance. Most classic models come with a hefty price tag.

    Additionally, in many cases, buyers have to take out a car loan to fund the purchase. However, financing a purchase is not as easy as an ordinary vehicle purchase.

    When you start searching for classic car loans, you’ll realize that there are very limited lending options.

    The available lenders also have certain restrictions on the preferred car’s age.

    These cars are old; hence you won’t find as many lenders willing to take their chances by offering finance options.

    You’ll only find a handful of classic car loan lenders to compare.

    What is a Classic Car?

    Any older vehicle, usually 20 years or more, falls into the category of classic cars.

    Any car manufactured during 1920s-30s is a vintage car, and all cars above 45 years are antique cars.

    However, this definition based on the age of the car isn’t concrete and varies widely by car-enthusiast groups and even states.

    The CCCA (Classic Car Club of America) accepts cars produced in limited numbers between 1915 and 1948 as CCCA Classic.

    Then again, the AACA (Antique Automobile Club of America) includes all vehicles aged 25 years or above as classic cars.

    The definition also varies by state.

    For instance, the State of New York doesn’t differentiate between vintage, antique, and classic cars, thus all vehicles aged 25 years or older can receive vintage historical plates.

    On the other hand, to get the same in Montana, the car has to be at least 30 years old.

    It also varies by the selected lender.

    For example, Collector Car Lending (Florida) defines vehicles manufactured between 1928 and 1998 as classics. J.J. Best Banc & Co. (Massachusetts) tags cars manufactured between 1900 and 1985, while nationwide lender Woodside Credit (California) accepts all cars that are 25 years or older.

    How To Apply For A Classic Car Loan?

    Most of the terms and conditions for classic car loans are similar to that of a standard auto loan.

    However, you’ll immediately notice a few visible differences.

    As usual, you’ll need to submit an application online or physically.

    The lender will review your credit score, income-expense proofs, identity, and address proofs before approving or rejecting the application.

    Here are some tips to follow:

    1. Review Your Credit History - Get a copy of your credit record from the bureau. Please be informed that approval directly depends on your credit score, so make sure you don’t have any pending loans or payments. You may get approved even with a low score, but you’ll have to pay higher interest.
    2. Review The Costs – Most lenders will ask you to put a down payment, usually 10% to 20% of the car’s cost. The higher the down payment you can afford, the lower your interest rates will be. Make sure to discuss other expenses like processing fees, insurance fees, and more before selecting an offer.
    3. Find a Classic Car Loan Lender – There are just a handful of classic car loan lenders. Hence, the best idea is to make a list of all such lenders near your location. You might want to check the official websites of each lender or visit them in person to better understand what each has to offer. Once you have the quotes, compare the offered rates to find the rate that best suits your needs. Some of the most well-acclaimed lenders issuing classic car loans are Woodside Credit, Car Lending, J.J. Best Banc & Co., Star One Credit Union, DCU Banking, and LightStream.
    4. Check The Specialized Car Insurance Options – You might need to get vehicle insurance before the lender approves your application. The problem is that not all insurers offer specialized car insurance and you may have to check with 3rd parties. Make sure to get as many quotes as possible so you can decide what’s best for you.
    5. Alternative Financing Options – You may be eligible for a personal loan to finance the classic car. While you can get a low rate depending on the credit score, the APR will still be higher than an auto loan. Alternatively, you can also try taking out a home equity loan but be advised that they can be risky.


    A classic car loan is not the same as a conventional auto loan.

    You won’t find as many lenders offering this loan type and the rates are directly dependent on your credit score.

    The best way is to think logically and decide if you can meet the monthly repayments before comparing all available options.