Everywhere you look you can find evidence that the classic car
investment trend is on the rise. Just take a peek at all of the big
classic car and vintage car websites around. Or, channel surf around all
of the TV shows dedicated to classic cars. And, check out the hundreds
of active car clubs around the country: there is at least one dedicated
to every type of out-of-production car you can imagine.
Tastes
in classic cars vary widely from person to person, of course. Some
people go in for the 60s and 70s American muscle cars. Others have a
thing for older Porsches, MGs, or Mercedes. There are of course some
older Japanese cars that have attained collector status. And some people
go back even further, taking an interest in the first cars ever made,
like the Model T.
Whatever your taste, unless you have gobs of
extra cash under your mattress or in the bank, you are going to need to
take out a loan to finance your new purchase.
Of course, when it
comes to financing, the lender is going to want to make as much money
off of the deal as possible - while still landing you as a customer. In
other words, they don't want you to walk away and go to someone else for
your loan!
3 Things to Consider for Classic Car Financing
Just
the thought of cruising down your favorite strip or sitting in your car
proudly on a sunny Saturday afternoon while it is parked in your
driveway can be enough to motivate any true car enthusiast to make it
happen. And while excitement is a wonderful thing, to get yourself the
best financing deal you can, it is a good idea to play the financing
game as smartly as possible. Here are 3 things to consider:
1.
For Most People, Classic Cars Should be Purchased for Pride of
Ownership, Not as Investment: Unless you are an exceptionally
knowledgeable person about the car you plan to purchase, it is probably
wise to treat it as a pride-of-ownership purchase, rather than as an
investment. More than a few people have lost their shirts in trying to
buy a classic car and "flip" it fast on the market because they did not
have the background to know what they were getting into.
2. Put
Down as Much Cash as You Can: The more money you can manage to put down
as a down payment, the lower your loan amount will be. With less money
borrowed, you will not only enjoy lower monthly payments, but you will
also pay thousands less in interest over the life of the loan.
Classic Car Financing
3.
Consider Multiple, Competing Offers: It is extremely tempting to settle
on the first financing offer you get. But, try to avoid that
temptation! Make sure to contact at least 5 lenders. The extra hour or
two of time you invest now could is likely to help you land the
best-possible financing deal.