Classic Car Loans?

[ezra]

Hello there, new young guy here (26).

Owned a Camaro since I was 15, but I've lusted after a '68 Charger since I was 12 or 13.

My mechanical ability is very low, so I can not handle a restoration. For me, the best choice is to buy a finished car.

However, we all know what kind of prices flawless ones command. Hence, I'm thinking about a long term classic car loan (would never sell the car).

I've looked a bit, and J.J. Blanc and Hagerty seem to stand out as the prominent two. However, I'm having a real difficult time finding out any actual information about the process and if either are any good.

The very little I found was that it can be a large hassle getting them to finally fund the loan, requiring a large amount of paperwork which ends up taking about three weeks for the seller to finally get their money which could really make it difficult if the seller isn't patient. This was really all I found, which was one review. I also can't find anything at all on interest rates (FICO is upper 700s with several loans behind me, both personal and auto in the past and credit card history back to age 18).

Has anyone financed their collector car, and can shed light on their experience?

I appreciate it.

 

[detmatt1]

Don't know anything about classic car loans, but you should be able to get a personal loan or an equity(if there is such a thing anymore)loan if you own a home.

 

[Phantomcobra]

Anyone giving a loan on a classic or antique is going to want to document the c@#p out of it since so many over state what the car is worth. The lender wants to know that if you died tomorrow, they could get their money back by selling the vehicle. With good credit, I have been able to get a personal loan the one time I tried. I did show them what I intended to do with the money and showed them the book price of the car and pictures so they were content the money was going to a good thing even though they did not want a car title that old. I think if I had just gone after a personal loan and didn't tell them what it was for (also had the check made out to the seller), they might not have provided it. The other key would be to find a classic car buff lender. To most, if the car isn't a perfect original or perfect restoration, the car is just an old car not worth $1,000. Even if someone would gladly pay $10K for it. Hagerty showed me some leniency in insurance. My 83 Ford is not really a classic but they insured it anyway since it is all original and only 40,000 miles. So they do look at the car as well as the owner (in my opinion).

I think it also helps if you can show you have another reliable, fairly recent car to drive daily.

 

[ezra]

If you don't have the money in hand, you need to ask yourself, do I really need this car? or just want it?

There is a difference.

It certainly would be a luxury want. I can't imagine owning a 40 year old $40k+ Charger is a need for anyone.

I've wanted one for over half of my life, and I've been diligent in putting myself through school, and being flawless with my credit. It's been a dream, and I've worked hard for it. I have no debt to my name sans a student loan smaller than most people's car note.

But at the going rate of $40k+ (which for a flawless Charger really means $45k-$60k), I don't think I would ever be able to afford one cash, at least not until I'm about to drop dead. I would be able to do the required down payment of 10-30%.

Curious what kind of interest rate they would give me. I am a member of a credit union but AFAIK they would never clear a $40k+ personal loan, and if they did, the interest rate wouldn't be very ideal being a personal loan (~8-9% range and a short payback period)

 

[Darius]

I used JJ Best Banc for two different car loans and it was painless. Of course, I am a bit older with a longer credit history (not saying yours is not good) so that factored in and both of these were BEFORE the current economic melt down.
The transactions were very easy and neither buyer ws inconvinienced, They actually sent someone to one of the buyers places to check the vin # but that was all.
Interest was very reasonable also

 

[ezra]

Could you give me a rundown of the entire process?

I'm assuming you start with applying to see how much you can borrow, then once you get approved knowing that amount, you start shopping and when you find a car you like, call up J.J. and tell them...and from there?

If you don't mind my asking, what kind of interest rate did they give you (if too personal that's ok, or you can send me a PM if you'd like) over how many years?

Also, do you have any regrets or would you do it again without a second thought?

 

[Darius]

Could you give me a rundown of the entire process?

I'm assuming you start with applying to see how much you can borrow, then once you get approved knowing that amount, you start shopping and when you find a car you like, call up J.J. and tell them...and from there?

If you don't mind my asking, what kind of interest rate did they give you (if too personal that's ok, or you can send me a PM if you'd like) over how many years?

Also, do you have any regrets or would you do it again without a second thought?

I sent you a PM. Yes, I would do it again without hesitating....even though my wife would probably kill me if I bought a third car home!

 

[hollywood1336]

I recently purchased a 68 318 Charger. I checked with all the classic car financial institutions, they all had 9.9% to 10% interest rates and my credit score was 819. You might want to check with some credit unions, some of them do car loan which will cover classic cars, California Coast CU was the one I approached. They had interest rates of 5.9% for 72 months. They definitely favor you putting a down payment on the vehicle as well.