There is one thing that prevents many of us from purchasing that Legendary Collector Car of our dreams…MONEY. Until recently I believed no one would lend money to purchase a collector car or a classic car. That all came to an end when I became aware of Woodside Credit. When I sold our 1969 AMC AMX the buyer was able to borrow the money he needed to complete the transaction from Woodside Credit. The process, from the seller’s standpoint, was absolutely painless and in many ways made the entire procedure easier than dealing with a buyer direct. You never know for sure when you sell a collector car if the buyer really has the money; you never really feel safe that the bank check you are getting is legit and taking a stack of $100 bills is not a great idea either.
Even if the buyer could get a loan I imagined that the interest rate and terms for the loans would be “way out there” similar to the rates in the Peanut Farmer Jimmy Carter President days of high inflation. You would expect an interest rate similar to a credit card level of 16.9% or higher, right? Even if you could manage the rates you expect that the maximum term to be 24 to 36 months, right? NOPE, not even close on either assumption.
Woodside Credit starts their rates out at 4.99% fixed! They require 20% down but with monthly payments you can take up to 12 years to pay it back. Let’s say you found that perfect collector car you have been dreaming about since high school but it will set you back $150,000. Here are the numbers; 20% down = $30,000; $120,000 for 12 years at 4.99% would be $1,109.00 a month.
Now that is still a big payment for most of us but if you are looking for a collector car at $50,000 then its $10,000 down and a payment of $370 per month. The maximum loan is $500,000. Their minimum loan is only $10,000 which equates to a car price of $12,000 with $2,000 down.This puts the collector car market into the hands of almost anyone who has a little discretionary money left over at the end of the month.
When I was talking to a representative from Woodside Credit about how their program works he said that most borrowers pay off the loans early and many use it as a short term financing until they sell another car or what ever. Woodside Credit is also the Preferred lender for Barrett Jackson so you know they are a legitimate company!