The Truth about Exotic and Classic Car Financing: 144 Month Auto Loans
Owning an exotic or classic car can be difficult if you do not have enough savings to pay for the value delivered on some of these cars. However, bad credit auto financing one of your dream classic cars might be more attainable than you think. You do not have to pay $100,000 or more in cash any longer. All you have to do is be willing to make payments on the car you want to the next 144 months.
- Getting Long-term Financing for a Classic Car
- Specialty Classic Car Bad Credit Auto Lenders
- So How do You Finance a Classic Car?
- Hidden Costs of Classic Car Financing
- How to Qualify for Classic Car Financing or Exotic Car Financing
- 10% Down Payment Exotic & Classic Car Financing
- Before Your Borrow for Your Exotic Car Loan
- Classic Car Loan Requirements from Us
Getting Long-term Financing for a Classic Car
This type of classic car loan has been in existence for a while but now 144 month loans have supplanted by the trendy 99 month loans. Yes, you would just need to pay your car off in 12 years at around $1000 per month. Not too bad really.
There was once a time when securing a classic car loan for 48 months with standard across lending institutions, and 48 month bad credit auto loans just are not enough anymore for people to buy their expensive toys. Prices continue to increase thanks to the improvements in technology especially in cars, like those made to the Tesla vehicles. In an effort to realign with the rising cost of buying cars, reliable lenders have been adjusting the length of their financing arrangements to keep up with these changes.
Specialty Classic Car Bad Credit Auto Lenders
I know I have said this already but seriously, that is repaying the full amount of walking 12 years. Will be driving your old clunker 12 years from now. Yes, your monthly repayments on 144 months are affordable compared to the repayment amounts for a 36 month long, but are you still going to want that same card 12 years from now? Is it still going to be worth the same amount 12 years from now?
Okay, maybe a 144 month auto loan does make sense you cannot afford payments on a car that you absolutely must have. I am not merely talking about the exotic sports cars here. You could get a 144 month loan on a Tesla. Hey, at least you would be saving the environment from harm 12 years down the road. 12 years from now you might look pretty cool to given that everyone will be driving a Tesla and you’ll just have a sweet looking vintage model. Yes, I think it 144 month auto loan makes a lot of sense right now…
So How do You Finance a Classic Car?
A classic car loan is going to no doubt come with the same requirements as regular auto loans. This means that the lenders are going to take into consideration your credit score, your income, what you can make for your down payment, etc. However, traditional car loans can sometimes be more restrictive about how old vehicle might be especially when there are a lot of miles on it. It is because of this that getting a traditional auto loan usually isn’t the best possible option if you are trying to purchase a classic vehicle. In some cases it might not be possible at all.
However, there are many lenders that specialize in classic car loans. The benefit was working with one of these classic car financing lenders is that they truly understand the classic car market and they understand how great cars can appreciate in value as opposed to depreciate in value like regular cars. Typically speaking when you find a loan like this you won’t have a restriction on the age, the mileage, or the loan to value. There are some options that you might find which don’t even require a down payment.
Hidden Costs of Classic Car Financing
Classic car financing is like any type of financing it will come with some hidden costs. The initial price for the classic car might seem a bit expensive, understand that there will be other costs included with owning such a vehicle. Most people fail to consider the extraneous details, those extra costs that they don’t list when you buy a car so they get shocked later on when the maintenance fees are incredibly high especially for something that is older classic.
With an exotic or classic car you’re going to face extra costs including things like shipping, restoration work, unexpected repairs, higher insurance, storage fees if this isn’t something you drive around regularly, and maintenance. In fact if you are going to do a restoration project on a classic car that can cost you anywhere between $20,000 and $40,000. Now, if you choose to restore the vehicle then it will run like new once you are done and the maintenance costs can be lowered as a result, often around $500 a year.
This is one way to offset the long-term costs of owning such a vehicle. Other things that you can do including improving the wheels with things like air ride suspension, fuel injection upgrades, or simply upgrading the classic engine to a modern turbo engine. You can also introduce a new suspension. Each of these options help you to add value to the classic car and might be a better financial investment long-term because they give you the option of reselling the car for an additional amount of money given the fact that the car is now one that boasts high quality components.
You also need to keep in mind that regardless of the loan type of financing you get for your classic car, your insurance costs might end up being substantially higher than any other car. Older vehicles tend to consume gas a lot more so you end up with a lot more money allocated to your gas mileage bills.
How to Qualify for Classic Car Financing or Exotic Car Financing
Loans for classic cars obviously require good credit. Good credit is one of the most important things for most people. Now, not having great credit is not going to necessarily be a deal breaker but it will certainly make it a lot harder for you to find favorable financial terms in the loan that you are able to acquire.
Loans can be given up to $100,000 for people who have good credit or this particular purpose the matter where you live. Now naturally whichever lender you choose is going to start off by looking at your credit history. They will look over several years of your credit history after getting a copy of your credit report. In so doing they are going to look for specific factors such as account variety. They do not just want to see that you have several years of credit history they want to see that your credit report contains a variety of account types including things like credit cards, mortgages, or installment loans.
The payment history is of equal importance. Many lenders want you to have a good payment history with very few delinquencies or late payments. This indicates that you do not have problems repaying any debt which bodes well for you if you are trying to take on a substantial loan to cover the cost of a classic or exotic car.
Beyond this they want to look at your savings and any income you have. They are using the savings that you have by way of a savings account, stocks, bonds, or retirement savings coupled with a stable and sufficient income stream to determine whether or not you are able to repay your current debt obligations as well as any new loan that you acquire for classic car financing. Your overall ability to repay your classic car loans is one of the largest factors that is taken into consideration when you apply.
After this for the most part the lending company will not really care what classic car you choose. The money that you get for your classic car financing can be used for any car, make or model that you desire. If you have money left over you can even use some of the funding for shipping the car from one place to another, any custom aftermarket accessories you might want for your insurance.
If you do not meet the criteria for an unsecured loan like that mentioned above, you can always consider getting a secured loan as an alternative.
Secured loans come with more restrictions area for example, the car has to be purchased and owned in the United States, generally it cannot be a commercial vehicle, and it typically has to be classified as a sport-utility vehicle, an automobile, or a passenger van.
Generally there are financial requirements that lenders might set up or the terms of your exotic car loan. They might require:
- a down payment between 10 and 20%
- verifiable income
- a good or excellent credit score
- proof of insurance
- a strong debt to income ratio
Again, it really doesn’t matter what type of loan you get. The lenders are always going to want you down some portion of the total cost which is typically 10% at a minimum. The more you can provide for your down payment, the better off your loan terms will be for your classic car financing.
In reviewing verifiable income and your debt to income ratio the lenders are simply trying to make sure that the amount of money you bring in every month or every week is substantial enough to cover the costs that you will face for your regular bills and this additional financial burden. If they see that you only make $2000 per month, and your current bills and debts amount to $1900 per month, then you might not be able to legitimately afford an extra bill for an auto loan.
Some additional requirements or restrictions might be applied to different classic car loans such as mileage restrictions, or age restrictions on the vehicle. In certain cases the lender might want to undergo a physical inspection just to make sure that the VIN number matches or that the engine runs.
10% Down Payment Exotic & Classic Car Financing
You will find it much easier to get classic car loans or exotic car loans if you have a down payment. This makes it easier for us or another lender to make sure that we do not assume too much risk in helping you to get the car of your dreams. In fact, having a down payment is not only a good show faith on your behalf but it helps to get you lower monthly payments because part of the cost is already offset. Add to this the fact that the show of good faith is a financial gesture readily accepted by lenders for people with any type of credit but specifically accepted for people who have bad credit and it is clear to see why any amount you can deposit as your down payment would be best. Naturally if you can reach a 10% down payment for your exotic car financing it is much easier to get you a better deal on the overall terms.
Before Your Borrow for Your Exotic Car Loan
Exotic car financing is not something you should take lightly. There are a few steps that you need to complete before you start looking into your financing options:
- Start off by choosing your vehicle. Decide if the vehicle you want is going to be an antique, classic, or exotic. Once you narrow down your choice of car, narrow down to your top three options and try to be more specific about the make and model that you really want to buy.
- Do some research on that vehicle. Get to know how it works. You can find lots of information from car enthusiasts online who will not only provide you with the particulars about their personal experiences but the things they had to do for repairs or the cost of maintenance. This will give you a better idea about whether or not the specific car you are evaluating truly does belong in your garage.
- Research the pricing by looking over different databases and guides to figure out what that classic cars truly worth.
- Of course you want to find a mechanic long before you have the car. You can’t just take a classic car to your regular mechanic and expect that they will know what they are doing. You need to find local people that you trust on a regular basis to handle any restoration work, repairs, or maintenance with name degree of care they you would expect them to apply to their own vehicles.
- Get an insurance quote. You certainly don’t want to be surprised by the insurance amount after you have made the purchase only to realize that you cannot afford both the loan repayment and the insurance. So, get quotes from multiple insurance company so that you know exactly what it’s going to cost when you have to start insuring your vehicle.
- Do a search for an appraiser and get the vehicle appraised beforehand.
- Get to know your credit score. Having good credit is a very critical part in all of this. Yes, having bad credit is not a deal breaker and having a bad credit classic car loan can actually help you to build up your credit through your repayments, but it is still good to know what your score is and what you are working with as a result.
- Figure out how much money you can legitimately afford as your down payment and get to know what is required for the loan that you are considering. If the loan you are considering requires only 10%, obviously you can narrow down the results for the cars that you are considering to those for which you can afford a 10% down payment. If your loan requires upwards of a 20% down payment, the same as applicable.
- Keep in mind the full price of the vehicle, and the additional expenses that you will have to pay both immediately and long-term like the taxes, the title, the registration, repairs, maintenance, storage, and shipping.
Classic Car Loan Requirements from Us
If you want to get a classic car loan, it is not as different from a conventional loan as you might think. You can simply submit your application here and we will help you to not only check your credit rating in history quickly to determine if you qualify for financing, but to point you in the right direction thereafter. The key is understanding the high ticket price exotic cars and classic cars will require a credit check due to the high exposure auto manufacturers risk in providing you with a 144 month auto loan.
If you do have bad credit we can still connect to the specialty bad credit auto lender can get you the best financing for classic cars that you need. Just fill out a form and we will get you an answer in less than 60 seconds, letting you know whether or not you have been approved for your car loan. Our team of specialized lenders will contact you within 24 hours or less to help you get into the car you are looking for. We can give you information on lenders, loan amounts and where to turn for additional resources.