Collector cars can be good investments if you choose wisely. If restoring or driving collector cars is your hobby, you can get a return on your investment and enjoy yourself doing it! There aren’t very many other “toys” out there that can earn their keep; most hobbies require you to invest in depreciating assets (Jet skis? Pleasure boats? ATVs or other off-road vehicles? Hunting, fishing…you get the picture). Collector cars in general will hold their value at the very least, and in most cases will appreciate as time goes by, instead of depreciating in value or getting “used up”.
If you are thinking about purchasing a collector car, using cash is the safest way to do it. However, an argument can be made for collector car financing when you look at the “opportunity cost” of having all that cash tied up and unavailable for other investments. You may be able to get an antique car loan and pay less interest than your money could be earning elsewhere. Most likely though, you would need to get that financing from a company that specializes in antique car loans for it to work. There are several different benefits to using a company that specializes in collector car financing.
Benefit #1 – Less time/Less hassle: You could spend a lot of time trying to find a conventional lender that will provide an antique car loan. Most normal lenders will not provide antique car financing for several different reasons. It mainly boils down to them not knowing the antique and collector car market well enough to make a wise decision on how much a particular antique car is worth. There are just too many variables for them to analyze, and the time they would have to spend to make an informed decision just isn’t worth the return they would get from the loan. Continue reading ‘Collector Car Financing – Top 3 Benefits of Using a Specialty Lender For an Antique Car Loan’ »