Automobile Financing 101

Drive today, pay over 15 years

Lease or buy? That’s a choice that buyers of collector cars face. Each has its advantages, and, especially with six- and seven-figure cars, it’s a decision that should be made after consulting with your financial advisors.

If, after doing this, you decide financing a purchase is what you want, let me say what you should be looking for. Using my company, J.J. Best, as an example, we make it possible to obtain fast, low-cost, fixed low-rate loans starting at 6.99% simple interest, long-term lending with up to 15-year financing terms. Most loans can generally be considered and processed for approval within three to five minutes with next-day check availability. In essence, J.J.Best provides customers with a complete financial solution, start to finish.

Classic Car Financing Basics

Financial institutions our customers traditionally deal with would not lend on this automobile type. We understand the “precious collateral,” and further understand the unique values underlying the classic car marketplace. Conventional lenders simply consider these types of vehicles as “used, worn-out cars.” Frankly, your local credit union or bank most often just doesn’t get that collector cars tend to rise in value rather than depreciate, and hence your 275 GTB/4 should be treated differently than a 2007 Escalade.

While interest rates have risen dramatically over the last five years and the Federal Funds Rate has escalated between 1% and 5% in the last two years, you should look for a company that has maintained stable fixed rates and offers 15-year long-term loan opportunities for potential classic car customers.

In many cases it may be more feasible and financially attractive to purchase on a long-term loan rather than lease, as many customers are accustomed to arranging on their new car financing. Bottom line, with purchasing, at the end of your term you actually own something.

How to Start

In general, new classic car customers considering their first purchase will need to have the following available to secure financing on their vehicle:

• • Established credit history and good credit rating
• • Satisfactory debt-to-income ratio
• • Valid state or country driver license
• • Proof of insurance
• • Copy of seller’s title (front and back)

My company will lend up to 98% of the purchase price of the vehicle, including tax and title fees incurred. If the customer needs insurance, we can arrange that.

Something extra we offer is that once a customer’s loan is completed, we also offer that customer access to VISA and MasterCard accounts that allow him to place a photo of his newly purchased vehicle on the front of his credit card.

Please use the above features and benefits as a check list when you go shopping for classic car financing. Ask your friends where they have gotten their collector cars financed. At various auctions and shows, go to every finance company who has a booth—their very presence indicates that they are committed to the hobby.

And while we don’t want to name names, you might ask the publisher of a well-known collector car magazine who helped him to arrange the financing of the silver 1963 Corvette from which he gets so much pleasure.