Financing a Collector Car
Until recently, if you wanted to purchase a collector car and you didn’t have a huge bank account you had to start with a less than perfect car. This meant you needed to find, at best, a driver quality car or more than likely a very rough project car. If you are blessed with mechanical skills the next step is to spend every available evening and the weekend in the garage working on the car. If you don’t have the skill set necessary then saving more money is the next critical step. A good trustworthy restoration shop must also be found. When you complete that step the car must be deposited with them for several years while you gather even more funds for the restoration. If your savings account goes dry they will stop working on your car. Years or sometimes decades later you can finally enjoy your pride and joy.
In recent years some of this has changed. Especially with the popularity of auctions, buyers can now arrange for financing on their dream car. Such financing might have been available at some collector car dealerships but was never available on private sales.
Now, anyone with a good credit score can likely purchase a finished complete prize-winning collector car and finance it over a ten year period at reasonable interest rates. I am not an advocate of long term financing but sometimes it is the only alternative. While talking with some professionals in the field of financing collector cars I have learned that many new owners are quite capable of paying for the car in cash but prefer to finance their purchase to use the cash for other purposes. Neither do they own the car for the full 10 years. They often only retain the car for 2 or 3 years and then move on to different “must have” toy.
How does all this work? Woodside Credit is the official finance firm available to Barrett Jackson Auction purchasers. They have a variety of options and requirements depending on the borrower and the car being purchased. Regardless, the process is very quick with approval taking only hours and paperwork only slightly longer.
Currently, in February 2020, you can finance cars as cheap as $15,000 with prices going up from there. A minimum downpayment of 10% is required but 20% may be required depending on the price of the car. The car will need to be appraised and inspected which is actually gives you another layer of protection on the quality of the car you are lusting after.
If you would like to know more about how this finance option might work for you click on the link below and talk to Jeff Sparrow.
