Owning a classic car is a dream for many. While new cars have features and options that classic cars cannot match, the grace, beauty and performance of classic cars cannot be beat. Financing classic cars, however, is a bit different from financing a new or recent used car. Here are five ways buyers can finance their favorite classic car.
1) Pay with cash
Those who sell classic cars are often individuals who prefer cash payments above other forms of payment. If a buyer has enough cash saved up to buy the car outright, he or she may be able to buy the car at a reduced rate. Further, cash purchases eliminate the stress of ongoing, monthly payments. Buyers who choose to go this route, however, should have the car thoroughly inspected and ensure that they have the sellers contact information in case the car turns out to be a lemon.
2) Buy with a credit card
Dealerships selling classic cars will likely be able to accept a credit card payment. Today, even individual sellers may have access to online payment gateways that allow buyers to pay with a credit card. If buyers do not have enough credit available, they can use online resources to compare the best credit cards for a low financing rate.
3) Traditional financing options
Banks may be reluctant to provide financing for a classic car. However, persistence can sometimes pay off; with a strong credit score and a history of on-time payments, buyers may be able to secure a loan. A small, local credit union might be a better option especially if the buyer has a history with them. Whichever route the buyer chooses, sharing information about the car’s worth and its depreciation can be helpful.
When thinking about classic cars, most imagine them as a second vehicle. For many, however, a classic car may work well as an every day commuter. Buyers who would feel comfortable with using their classic car to commute or run errands may be able to get good trade-in value for their current car. Many feel that classic cars that only leave the garage on Sundays are a waste of money; what is the point of having a classic car if it is rarely driven?
5) Buy an older model and repair it
Sometimes, the cost of a classic car in perfect condition is simply too high. However, cars with repairable wear and damage can be significantly cheaper. Further, many enjoy to process of restoring a car to its former glory. Though the hours can be long and the work can be complicated, the results are well worth the effort.
Despite the challenges it presents, financing is available for classic cars. It is important to remember that classic cars are not going to disappear; if you cannot afford a classic car right now, save up for a year or two and see where you end up. Open a dedicated bank account and begin to put money aside for the car of your dreams.