Options for Financing a Classic Car

Click here to get this post in PDF

Car financing can differ depending on the car value, the lender, and the type of vehicle you’re looking to finance. When making such an important purchase as a car, you must be aware of your options and ensure you’re comfortable knowing that your finance options suit you. When it comes to financing a classic car, you must get advice from those who know and understand the world of motoring as well as finance. Experts such as the Classic Car Finance Team at Cambridge & Counties Bank can provide a smooth and knowledgeable process to suit your individual requirements.

Here we will discuss the different types of classic car financing. Thankfully, a search for bad credit car finance garages near me will reveal organisations ready to assist you with a car finance agreement even if you have a low credit score.

Purchase Finance

Purchase finance is commonly offered by lenders. When it comes to classic cars, purchase finance is agreed upon before the purchase of the car. Before purchasing the car you should find dealer invoice price in order to get the best deal. The finance provider should be able to offer an efficient turnaround; this can allow for the purchase of time-sensitive vehicles.

Equity Release

Equity release is a financial option worth knowing if you already own a classic car and want to add to your collection. As certain classic cars may increase in value over time, equity release will allow you to see the results of a classic car investment by either utilising the funds to purchase another car or releasing them without having to sell the car.

Auction Finance

Auctions are fairly common places to find classic cars, and those who collect them will likely browse auctions to find their next big purchase. Auction finance allows you to get your finances in place ahead of the auction to comfortably and confidently bid on your next classic car without concern.

There are many definitions of what makes a classic car, but in order to get the most bespoke finance deal you can categorise your car into one of the following subgroups.

Modern Classic Finance

Modern classics can be defined as being between 20-25 years old. As with classic cars, having a tailored finance plan is essential; as individual and bespoke as the car itself.

Classic Car Finance

Classic cars cover a broad spectrum and are usually bought as collectibles. A classic car would usually be a vehicle that is 20 years or older. In many cases what a classic car is can differ depending on who you ask, and that’s the beauty of it. Just as classic cars are personal, the finance for it should be too.

Vintage Car Finance

Vintage and classic cars are often confused but there are entirely separate entities. Vintage cars are typically from 1919 to 1930. It is hard to come by people who have true knowledge and passion for vintage cars so finding the right finance can be difficult; it is essential it is personalised to you and your car.

Racing Car Finance

It can be hard to find racing car finance as they are generally considered to be a higher-risk asset; especially for classic and vintage race cars. Choosing the right lender who offers high-value car finance will ensure your transaction is dealt with efficiently and securely.

Finding the right finance for that classic car you’ve always dreamed of is important. However, it can be complex if you are not supported with the right expertise and knowledge. This is why it is recommended to go with a lender that you trust and shares the same passion for classic cars. Considering options like open banking and exploring revenue based loans can also offer additional financial flexibility when seeking financing for your dream racing car.

You may also like: How Do Car Dealerships Make Money?

Image source: Depositphotos.com