Financing a classic car works differently from financing a late-model truck, and the difference comes down to two numbers: how old the car is and how much it costs. Those two numbers decide which kind of lender will look at it. Here is how it actually works when we quote classic-car financing in Lake Havasu, and what the lender will want from you.
The 25-year line
Conventional vehicle, boat and RV lenders generally finance units less than 25 years old. For those, the lender we quote through most often is America First Federal Credit Union; big-bank lenders such as U.S. Bank, Wells Fargo and Chase are options as well, all subject to lender approval. A 2005 Corvette or a 2010 Mustang fits here.
A car 25 years old or older, which is most of what people mean by “classic,” falls outside most conventional programs. For those we use equity lenders: lenders that underwrite the car as collateral and the buyer as a whole, with equity down, rather than running it through an age-limited vehicle program. A 1967 LeMans, a 1932 Ford or a 1979 Trans Am goes this route.
The $150,000 line
Most lenders won’t lend past about $150,000 on a vehicle or boat. A few go to $250,000 with more collateral down. Above that, a small number of private equity lenders will finance the right car for the right buyer, and they decide on the buyer and the deal more than on a credit score alone. High-performance boats sit in the same realm regardless of age.
What the lender actually looks at
- The car’s identity and paperwork. Title in order, VIN or serial matching the car, no unresolved liens. Our guide to checking a classic car’s VIN and title history covers what the lender will check too.
- Value and condition. Equity lenders want to see what the car is, what it’s worth and what documents support that: build sheet, restoration receipts, photos, registry records, sometimes an appraisal. Documentation moves the number.
- Your down payment. Classic-car lending is equity lending: expect a meaningful down payment, and expect it to matter more as the price climbs.
- Your credit and income. Still part of every application; lenders may ask for income documentation, and requirements vary by lender. On older and higher-priced cars the buyer’s overall picture carries more weight than the score alone.
- Insurance. A lender funds against an insured car. Ask the lender and your insurer what coverage is required and whether an agreed-value collector policy fits, and get the quote before closing so insurance isn’t the thing holding up delivery.
How it works with us
- Apply. Fill out the secure credit application; a formal application is a hard pull, which may temporarily affect your score by a few points.
- We place it. Our finance team sends the file to the lender that fits the car’s age and price, instead of you shopping bank to bank, and comes back with the options.
- Approval and closing. If a lender approves, you review and sign the loan documents, typically at the dealership, and take delivery once the lender funds. Our fees are itemized on every listing page: $399 documentation, $110 processing and $495 safety inspection, plus Arizona sales tax where it applies, confirmed on the purchase paperwork.
Every loan is on approved credit and subject to lender approval. We don’t quote rates on a web page and we don’t make the lending decision; the lender does. What we know is which lenders will look at which cars, so you’re not shopping bank to bank.
Next step
Start the credit application so you know your options before you fall for a car. See the classic cars, hot rods and trucks in stock. Thinking about selling one? How to sell your classic car in Lake Havasu. For boats and RVs, see boat and RV financing in Arizona. Call (928) 453-8833 or text (928) 732-2281.
