Financing

[Willard M.]

Re: Financing

Recently I sold a Monte Carlo SS that I bought to flip. My buyer used J.J.Best and was pleased with the ease of getting the loan. This is also the lender of choice by a well known dealer in classic cars here in Maine. I was surprised at the reasonableness of the rate quoted. I might add that in my earlier days of Corvette buying they were all bought with a personal note. In those days Corvette appreciation was such that it was easy to get out with profit to spare even after interest charges. If I had waited to pay cash I don't think I would have ever entered the hobby.

[Bill L.]

Re: Financing

HI John:

I think Matt DePippo said it best --- you can't restore a car for anywhere near the cost of financing ----

That said --- my suggestion would be to try the classic car insurance companies --- I know Hagerty offers financing through a financial partner and I think the others do as well --- bottom line get the best car you can afford (make sure its real) and enjoy it ---

(One more thing --- check with the various chapters where potential cars are for sale --- the people in the chapters are always a big help to fellow members when it comes to checking out cars that you are considering!!!)

Regards
Bill

[Jim D.]

Re: Financing

Another possibility not yet mentioned is borrowing from a friend or relative, making a binding contract with them as legal owner of course. With CD rates around 1% for the last several years and for at least the next few, maybe they would lend you the money for say 3% which is less than 1/2 of what you'd be paying a financial institution. That would be a win/win for both of you.

[Steven B.]

Re: Financing

John, to answer your question (partly) I know 2 fellows who borrowed in the past year, one from Hagerty and one from Best. They are both pleased. I don't know their rates or particulars. I do know each did some comparative shopping. Steve

[Patrick H.]

Re: Financing

I'm in the process of getting a loan on a classic car as well. It's just a bridge until I can sell some assets to cover it, but since winter is coming I need to pick up the car from out of state while I can. I'm buying it from a friend in South (up to his knees in water) Carolina and I want it here before the snow and salt arrive.

In searching, only LightStream posts their interest rates online. All the others are "secret" until you apply.

I sent an application in to LightStream and it took only seconds for the approval to hit my email Inbox. They gave me 30 days to accept or deny. It is an unsecured loan (really it is a line of credit) and the rate is quite good.

I also sent one to Woodside Credit, the establishment Hagerty recommends. They also have relatively good ratings from others. They called about 2 hours later with approval. In talking with their rep and reading the terms it is a secured loan (needs bank name on title), is 2% higher rate and requires an inspection of the car.

Given that the car likely will be paid for in the next year I'm leaning toward LightStream at this point.

Patrick

[Jim H.]

Re: Financing

I have used both LightStream and Woodside. Lightstream is all done on-line, they approve very quickly (w/the right FICO), and you e-sign the docs. The interest rate (for my 2005 Porsche Turbo S) was comparable to my credit union at about 3.25% which was simply astounding. Lightstream does not take a lien on the vehicle title. No waiting for a lien release signature from them. I do not know how they underwrite midyears but you should definitely try them. Easiest auto loan I ever did. Woodside is a luxury item/higher rate lender. Two years ago, their rate was about 7% (a spread of about 350 basis points from my credit union at the time). Very easy to deal with, did the transaction by mail, but I paid for the privilege. Payoff w/both lenders was a breeze.

[Frank D.]

Re: Financing

Before completely retiring, I got a HELOC (Home Equity Line of Credit) from Regions Bank on my paid off house...most any bank will do this. It gives me $200K, on tap, whenever I may want it (easy as writing a check) and a nice, very low, interest rate. Now, of course, that means you are encumbering your house to cover a luxury item, but I would liquidate other assets to repay the HELOC quickly.

Its mostly so I don't miss a golden opportunity while scrambling for cash. I don't see financing a classic car as much different than financing a boat or RV....and there are a lot of those depreciating away, unused, faster than a well-bought classic car. I don't see the need to dance around with a classic car lender while an opportunity passes and I bet their interest rates are no better. Also no lien on the title with this method....if I were a 'flipper' this would work out well - but I'm not..

[George J.]

Re: Financing

Franks advise is sound. With that type of loan, you are most likely getting the lowest rate, can then write off the interest, and can usually take ten years to pay it off. Less if you like. There is a lot of flexibility in that type of loan. I've used the same for all of my auto purchases, including new cars, if needed.

George

[Bob W.]

Re: Financing

I have to agree with Frank .

[Martin T.]

Re: Financing

I would just compare terms (to know there is no prepayment penalty, etc.) and go for the lowest interest rate. Years ago GMAC was able to finance cars having nothing to do with G.M.. IMO,Hagerty is a company that I would have no hesitation with. Attaching a lien on your house could be a little unsettling. A loan against what you are buying,at least, should restrict the lien to the item purchased (again, check the terms to insure the loan is on the car and not wrapping more than you want it to).

[Patrick H.]

Re: Financing

I also have a HELOC, but currently the LightStream rate is about 1.7% under (32% less if you will) the HELOC rate.
Write it off or not, when your wife wants "toy" finances separate from home finances, which I've done for years, well...

[Robert B.]

Re: Financing

+1 for Lightstream

[Carl N.]

Re: Financing

If you have a daily driver (s) that are paid for or almost you might consider refinance of those vehicles to purchase classic outright

[John P.]

Re: Financing

Hello John, My son and I have been in similar situations in the past. Many of us do not have the immediate cash on hand to live a dream. Financing is the only option. My son recently financed a classic car with Woodside. Woodside actually searches and places the loan with local banks in the California area with the lowest interest rates. They send one of their representatives to evaluate the car before the loan can be approved. This to me was an additional bonus of having a free appraisal. They only place a lean on the title of the car purchased. This prevents a personal financial loss in case your financial status changes. In this case you would only forfeit the car, instead of your home or property. Go for it John, and start to live your dream! Only one word of caution, purchase the car you really want. Good Luck, John

[Robert B.]

Re: Financing

If you have a daily driver (s) that are paid for or almost you might consider refinance of those vehicles to purchase classic outright

I do not understand that approach in the slightest. What's the advantage? Is there something I don't know?

I have very good credit, fortunately. I've been lucky in that respect. Lightstream approved me for $20000 on an unsecured loan at 1.99 for 60 months.