How To Fund the Purchase of Your Dream Classic Car – by Lucy Wyndham

Classic cars are known for their impeccable ability to retain value, which is part of the appeal of owning one. According to recent valuation figures, a 1968 BMW 2002 Standard Cabriolet will fetch up to £22,900 for a concours-level model, which is quite a lot of cash to splash out. For the avid saver, this is going to be an easy feat, but for those who aren’t quite willing to dip into their savings for a classic beaut, there are financing options available. When it comes to a classic car, it’s not just the financing of the purchase to consider, but also ongoing repairs, maintenance, and restorations.

Consider Purchasing A Fair Model 

If the concours model is a little out of your league, but you have the skill and patience to purchase a work-in-progress, you might want to consider a model in fair condition. These often come in under half the cost of one at concours level, but there are things that need to be considered. Firstly, you may not find the original parts to get it up to a higher level and there might be damage to the body or parts that will make a restoration almost a useless exercise. If, however, you’re making the purchase for the love of the car and not necessarily as a show pony, then you might even consider a complete rebuild, which can easily be slammed or converted into a rat car.

Financial Products On Offer 

classic car that meets the minimum requirements for a financial institution may well receive finance as these cars are deemed an asset. While financial institutions often have a maximum of five to ten years to finance cars, classic cars are in a category of their own and usually fall into the 20-years-plus category. There are financial institutions that specialize in the financing of these classic cars and the checklist in order to qualify for finance can be extensive. Those who don’t quite meet the requirements for a straightforward installment sale or hire purchase could consider an equity loan against their existing fleet of classic vehicles, especially for those in the process of rebuilding their financial standing.

Alternative Finance Options 

There are those classic cars that have heaps of potential, even if they just happen to fall into the passion project category. Formal finance agreements might not be possible, and if you need to access all your savings to fund these, you might find your cash flow strained if there’s more to be done than meets the eye. To free up cash flow and get the restoration to an acceptable level, a personal loan or 0% interest credit card might just do the trick. This comes in handy for those who are looking to restore cars with the intent of selling, as the profit could easily square off the finance plus a bit of profit for the owner.

Purchasing, restoring, and maintaining a classic car can be a costly hobby and finance options may not seem readily available, that is unless you know where to look.


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