We get it. Model A’s can be extremely expensive. To make a proper investment, many classic car consumers choose to finance their purchases. This allows them to afford incremental payments over time while the vehicle increases in value to get a better return on their investment. A variety of types of loans are available.
How a Classic Car Loan Works
Every classic car loan is different. They depend on the make and model of the car, its condition, and the financial status of the consumer. Down payments often range somewhere between 10% and 30%, depending on the creditor and agent. Similarly, interest rates vary from 5% to 10% and loans usually last between 10 to 12 years. Some lenders will even allow you to factor in your sales tax and/or warranty into the loan itself. Again, it all depends on your personal situation and the financing company guidelines.
Other Types of Classic Car Financing
While a loan is the most common type of financing, there are other options available such as leasing. If consumers do not want to permanently purchase a classic car, they can still enjoy the pleasure of driving one around for a few years.
Working with the leasing company and bank, you determine the car’s residual value: the worth of the car at the end of the lease that determines the monthly payment. The advantage of leasing is that, because you do not actually own the car, you are off the hook if the market plummets.
To finance your Model A Ford, take a look at some of our trusted providers:
Collector Car Lending offers rates that start at 5% with no prepayment penalties and a down payment of 10%. Consumers with a credit score about 740 do not need to provide proof of income. Within half an hour of submitting a loan application, an agent will contact you to set up a loan.
JJ Best Banc & Co provides loan coverage for almost all antique cars made since 1900. Clients can prequalify in as little as 5 minutes to access their industry low rates. Their specialists work with you to discover the best financing program for you.
The folks at Woodside Credit suggest applying for a flexible loan of up to 12 years to present the lowest possible monthly payments for classic cars, collector cars, exotic cars, and antique cars. On their website you can receive a rate quote or apply for a loan online.
Choice Motor Credit supplies purchase finance, private equity, restoration equity, and private pawn equity loans for all types of classic cars. Within two days, you can receive a loan ranging from $10,000 to $500,000.
Find out more about each of our trusted providers by clicking on their links above.