Classic Car Loans in Ontario: All The Information You Need
Classic Car Loans in Ontario: All The Information You Need
Posted on March 6, 2023
We're discussing yet another client query today. This time, it's a touch different from the ordinary because the vehicle being financed isn't your typical daily driving. Can I receive a car loan for a classic car? was the query.
Canada has a big market for classic cars. Individuals purchase antique cars for weekend use, as a pastime, or as a long-term investment. As long as you know what you're looking for, some classics increase in value, making them wonderful investments.
But can you finance one or do you need to pay cash?
Car Loan for a Classic Car
You'll probably discover very quickly that not all lenders provide loans for older cars.
Typically, a classic car is one that is 25 years old or older. As every group has its own viewpoint, there is no precise definition. Some define classics as works published from 1948 onward, while others classify works published between 1900 and 1985 as classics.
If you already know what you want to buy, applying for classic vehicle loans is similar to applying for any other auto loan.
Check Your Credit Score
Check your existing situation before taking any further action. Make sure your credit score is as high as it can be by checking it. The likelihood of obtaining a loan increases with credit score.
If you have the time to do so, try to raise your credit score if it needs it. You may get a better deal on your auto loan and spend less on interest.
Decide on the Down Payment
With a classic automobile loan, a down payment is a requirement. Although we advise them for all car loans, they are essentially required for historic cars.
Some lenders demand a down payment of 10% to 20%. Some are more accommodating, but if you budget for that amount, your chances of being accepted are higher. By the way, down payments are not necessary with us! To find out more about no-down-payment auto financing, click here.
Consider Running Costs Before You Apply
Running costs must to be taken into account in your calculations, depending on your financial condition. A classic will require more upkeep, and parts and tyres may be more expensive and difficult to find. The cost of specialized classic car insurance may also increase.
It's crucial to take into account all of these factors in whatever calculations you perform since they add up.
Loans for classic cars should be easy to obtain as long as you have decent credit and can comfortably afford repayments.