Another great reason to finance through a specialty lender is the possibillity of longer loan terms. If the car or truck is quite expensive, you may have the option of extending the loan for a longer length of time. Standard financing on a vehicle is usually capped at 60 months (5 years). Some specialty lenders can go over 10 years, but of course the longer your financing period is, the higher the interest rate. But the option is usually there if you want it.
Steps to Securing a Classic Truck Loan The first thing you will need to know before you apply for a loan is your credit score. Specialty auto lenders require your credit score to be higher than a standard car purchase. If you barely squeezed by getting a loan for your current daily driving vehicle, you probably won't be approved for a specialty car loan. If your credit score is above 700, you shouldn't have many problems securing a loan. If it is less than 600, it will probably be impossible. Generally a 20% down payment is expected on a specialty truck loan, and 30% if it is a hot rod or specially modified truck. This may be waived if your credit score is excellent.
After you prequalify for a loan, you generally have 30 to 60 days to find a truck before you have to reapply. It may be best to prequalify if you know you will be finding and buyinga truck in a few weeks. You will not be wasting your time or a sellers time if you find out that you can't get a loan, and it will jsut speed up the process once you find the collector truck you want to buy. MAKE SURE the seller has the title to the truck. There are a few states that do not require classic vehicles to have titles, and it's nearly impossible to get a loan for a vehicle without a title.
Determining A Classic Truck Loan Amount When determining the amout you will need for a classic truck loan, don't forget about shipping costs, travel, and inspection services. You may be able to pay these without the loan, but keep these in mind if you want the loan to cover everything. If you are purchasing the truck from an online ad or other ad with out of state trucks, you may want to travel to the location to see the truck firsthand. If you can't do that, there are many inspection services out there that will take a detailed look at the car and document the vehicle in detail for you to inspect before purchasing. These inspections can cost a few hundred dollars. Shipping costs can be in the thousands of dollars range if you are transporting the truck across the country, and if you want it in a covered transport, etc. All these details can add up.
