Are you one of the many classic car enthusiasts, but don’t have enough capital to buy it? Maybe you are crazy about seeing various classic cars at classic car trade shows. You then fantasize about driving that classic car.
Addicted to classic cars but don’t have money? If so, classic car loans can treat your addiction. You imagine you can bring an exotic classic car and you dream of having it. Don’t worry, you can have it even though it’s not easy to achieve it. Classic cars are exotic and very expensive!
Classic car addicts must seriously think and find ways to have it. Why not use a loan to finance classic cars? You are worth considering a classic car loan. There are many classic car lenders today who are ready to realize your dream of walking in an exotic classic car.
No need to Worry
You certainly are very aware that getting something special is obtained in a way that is not easy. You are certainly ready for this condition. You can try applying for a loan at a local bank or credit union, which has your home mortgage. It could also be through lenders who have financed your car.
You are advised to try borrowing from a local bank or credit union. However, you should know that the two lenders did not have much knowledge about the classic car market, including less experienced in financing classic car loans.
Special Loan Lender
Like insurance, many lenders are currently specifically financing classic cars and other exotic vehicles. For now, this particular company is your right choice. If you don’t know much about companies engaged in classic car loan financing, you should check online or ask your friends who have got a classic car loan.
There are several reasons why you need to come to a lender specifically for classic cars. First, they really understand what you want – not buying ‘used cars’ but high-value classic cars. They value classic cars because of their exotic value, besides having extensive market knowledge. This lender is able to estimate accurate values and this is very important for those of you who want to have a classic car.
Just like when you want to borrow at a conventional lender. Classic car lenders also put forward many terms and procedures for obtaining classic car loans. Of course, each lender has different terms and procedures.
When applying for a loan, the lender will check your rank and credit history to determine whether you are eligible to receive credit and pay the installments. Because this problem is related to risk assessment and is very important for all financial companies, you should seriously pay attention to credit history issues before applying for a loan. If you are ignorant of credit history issues, you may be refused, or even if approved, the lender will charge a high interest rate.
Another factor you need to consider is that you will usually be asked to pay a minimum of 10% -20% of the purchase price of a vehicle. If you have enough money, the down payment should be large, because the higher the down payment, the lower the interest rate.
The period of a classic car loan is usually valid for up to ten years, longer than a standard car loan, which is only valid for five to seven years. If you are able to make payments for shorter loan periods, such as three or five years, you should choose a short-term return option. Because you will get many benefits if you take a shorter period of time, because the interest rates are lower.
Renting or Buying?
Just like a conventional car, by renting a classic car can be an alternative that allows you to buy directly. Through a lease agreement, you and the lender will determine what is known as the residual value for your prospective purchase. The residual value is the minimum amount of the value of your classic car at the end of the rental period. The lender will then lend money the difference between the cost of the vehicle and the residual value. At the end of the rental period, the lender receives the car that is being held back and sells it for the remaining value.
If you are interested in owning a car, you can buy it from a lender. Renting can be an alternative choice, besides buying, especially if you like changing classic cars every year. But remember, you have to buy insurance if your classic car is funded by someone else, especially if you only rent.
Whatever you will do – whether renting, borrowing, or buying directly a classic car, you will have financial responsibility. Of course, as a fan of classic cars, you like it very much. But you cannot just obey emotions without thinking realistically. You or an expert need to check the vehicle before buying to make sure you really get the vehicle you like. No matter how big your love is, don’t ever finance a classic car that you can’t afford.
The risk is that you will lose love if you are late paying rent. It’s a good idea to be patient while browsing the photos of your dream car for free on the internet – while collecting money to buy your dream classic car.