Classic Car Financing Directory
Getting a classic car loan is a little different than getting a typical used car loan. There are a number of companies out there that specialize in classic car financing, and you can save a great deal of time and hassle by skipping the local bank and going directly to one of the companies below that specialize in classic car loans. Some of them only do conventional financing, some specialize in classic car leases, and some can do both. This is by no means a complete, all-inclusive list, but these companies are a good place to start when you are considering classic car financing:
- J.J. Best Banc & Co., located in New Bedford, MA offers classic car loans and refinancing nationwide. They provide simple interest loans with no prepayment penalty after 90 days and terms from five up to ten years. J.J. Best will finance almost any type of classic vehicle from 1900 to today, including the kit cars, vintage motorcycles, RVs, and modified cars that some other companies won’t touch. They do not charge an application fee, and you can fill out an application online or do it by email, fax, phone or snail-mail. They can give you a credit approval as quickly as 5-10 minutes, and the approval is good for thirty days in case you are still negotiating with the seller or if you want to get credit lined up before a classic car auction.
J.J. Best does require a minimum 10% down payment and excellent credit, with no bankruptcy in the past seven years and no late mortgage or car payment history. Only certain cars will require an appraisal, such as hot rods and other highly modified cars. Most cars they finance only require a brief physical inspection to verify the VIN numbers match the title and that the engine starts and runs. Providing them with a copy of your driver’s license and the purchase/sale agreement, proof of income and insurance, and proof of down payment will expedite the process. They also offer classic car insurance through Hagerty Classic Car Insurance and have a classic car warranty program available. Call them at (800) USA-1965.
- Woodside Credit Collector Car Financing is located in Newport Beach, CA and offers collector car financing, refinancing, and pre-approvals for upcoming auctions. They provide simple interest, fixed rate loans with no prepayment penalty after two years and terms all the way up to twelve years! Woodside will make loans for most classic cars more than 25 years old, and they also provide late model exotic car financing, but they do not provide loans for replicas or kit cars. You can apply for a loan online, or download an application to be filled out and faxed or mailed in. Most loan requests get an answer within two hours. They have a loan payment calculator on their website to help you determine how much car you can afford, which comes in really handy!
Woodside requires a good credit history, with a FICO score of 700+ and no bankruptcies. Call them at (800) 717-5180.
- Motor Cars Financial is in the Dallas/Carrolton, TX area and they offer collector car financing, exotic car financing and refinancing nationwide, from $6,000 to $1 million plus. Hot rods, muscle cars, ultra luxury cars, super exotic cars, vintage sports cars – they do it all! They have terms of up to twelve years available, and with good credit you can be qualified for a loan within 24 hours. There is a $49 application fee that is deducted from your origination fee if the loan is approved. Your credit score needs to be at least a 640 or better, and you can apply online. Motor Cars Financial also offers a collector car locating service and warranties for exotic and collector cars. You can contact them at (877) 855-3273. Motor Cars Financial also offers classic car leases.
Motor Cars Financial is the first company on our list that offers classic car leasing. The average consumer doesn’t understand leasing because it can be quite complicated, but it doesn’t have to be that way. With a lease you are basically renting the car with the option of buying it at the end. Leasing will usually lower your monthly payments, allowing you to drive more car for your money, and it may offer some tax advantages as well. If you lease the car in a business name, the lease payments are made with pre-tax dollars, reducing your taxable income. Leases as a rule, however, have a mileage limitation, and you will pay fees or penalties if you go over the limit. Every leasing program is different, so it is best to contact several companies to compare the programs they offer in order to choose the one that fits your needs the best. Here are two other companies that specialize in classic car leases:
- Putnam Leasing is located in Stamford, CT and has been in business since 1983. They offer leases on classic, exotic, and luxury automobiles, and will custom tailor a lease based on your driving profile. Lease terms are available from 24 to 84 months, and they offer pre-qualification if you plan on bidding on a car at an auction. At the lease inception, you will come to an agreement with Putnam on a pre-determined value for the car at the lease end. Ideally, the residual value (the amount you would pay for the car at the end if you choose to keep it) would be aligned with the anticipated wholesale value of the vehicle at the lease expiration date. When the lease expires you have four choices:
1. Pay the residual value and own your car free and clear. No more payments and you hold the title.
2. Putnam writes a new lease that finances your residual payment. No big cash layout and you continue enjoying your vehicle.
3. Sell the car, pay the residual value, and pocket any difference.
4. Trade the car to a dealer and let them pay the residual payment. You keep any difference, or apply it to a new lease.
Putnam Leasing offers an online lease application, or you can call them at (800) 278 – 0071.
- Premier Financial Services is located in Woodbury, CT and has been in business since 1997. They specialize in leasing exotic, vintage, and highline vehicles (over $25,000 value), and their leases are structured with an agreed-upon residual. Premier offers a Simple Lease program that allows you to change cars as often as you wish within the same lease agreement by just paying the difference in value between the two vehicles, and keeping the same lease payment and residual value. They also offer an Early Termination Program, which allows you to end the lease prior to expiration by paying the balance owed. If you keep the lease until it expires, you have the same four choices as you do with Putnam that are outlined above. Premier Financial Services also offers an online lease application, or you can call them at (877) 973-7700.
Classic car financing and leasing have a number of advantages over purchasing a car with cash, but you need to understand what you are getting into up front. Purchasing a classic car you can easily afford with cash is always the safest and most conservative route, but an antique car loan or lease will allow you to put more cash into other investments.