Most typical banks and loan companies are not prepared to deal with the unique needs of a valuable antique, vintage or classic vehicle. For one thing older vehicles are difficult to appraise because their value is dependent of the current market and can not be determined by looking in a book. For another, car and truck loans are generally secured by the vehicle itself so if a lender is unsure of the value they will not want to use the vehicle as collateral for the loan. And lastly, lenders who accept the vehicle as collateral will insist on proof of insurance for the replacement cost so, once again, that will not work if the lender is unsure of the amount.
Lenders who specialize in antique, vintage and classic cars know all about those vehicles, are more likely to accept them as collateral and will help find appropriate insurance. They will either be skilled in appraising the vehicle according to the current market or will require that the vehicle be appraised by one of their approved appraisal companies. However, while banks might require only a small down payment and offer competitive interest rate, you can expect a specialized lender to require more money down and charge a higher interest rate. This occurs because they are loaning on a less tangible item that may be difficult to sell should the need arise and, to put it simply, because they can!
Finding and selecting a finance company for an antique, vintage or classic car or truck is much like finding a good mechanic or real estate agent. You need to shop around and evaluate on a variety of factors such as reputation, history in the business and level of success before selecting one. You can start by searching the Internet or local directories but you should not decide without checking their references. Down payment requirements and interest rates will vary among them and some will require more insurance than others to protect their investment so talk to at three before making a decision. Local car clubs are always a good place to start asking questions and J. J. BEST BANC & CO. is one of the largest antique, vintage and classic car financial companies in the country. They will finance hot rods, roadsters, kit cars and muscle cars.
Appraising, escrow and insurance are all part of vehicle financing and you will find more information about those services in our Reference Library. The library also has guides for Finding and selling antique, vintage and classic vehicles. And you will find even more financial resources in our Business Directory.