Is there a pre-owned, classic car you want to purchase?

Before you can bring your vintage car home to Frisco, you may be thinking about the process of getting classic car financing. The team at Longo Toyota of Prosper is here to help! For a classic car loan, the requirements are similar to a traditional car loan, but it’s unlikely that you will need this, because of the age and mileage restrictions. A classic car loan will be the best solution if you are not buying the car outright.

Get Qualified for Classic Car Financing

It’s important to understand the required classic car financing credit score. While you can get financing for a new car with a bad credit score, classic car financing with bad credit is not common. In addition to that, you will also have to prove the following:

• Credit history: Your good credit score should go along with a well-established credit report a variety of accounts – credit cards, mortgage, personal loan, etc.
• Steady income: You need to prove that you have a stable source of income with enough money to repay your loan.
• Payment history: Do you always pay your bills on time? Did you make timely payments on auto loans in the past? Potential lenders are sure to consider this.
• Savings account: If you don’t have a savings account, it’s best to have one before applying for classic car financing. It shows that you know how to handle money and your purchase isn’t impulsive.
• Insurance coverage: Like traditional auto loans, you need proof of auto insurance.

Vehicle Requirements and Restrictions

Since you know what’s needed to secure classic car financing, let’s take a look at the restrictions and requirements for the vehicle you intend to purchase.

• Vehicle appraisal: Many lenders require an appraisal to see how much your perspective classic car is worth. Consulting sources like Nada Guides provides a good idea of what your vehicle’s current value might be. You can also search for vehicle appraisers in the Plano area for an expert opinion – these services can cost between $100 and $500.
• Age and mileage restrictions: Depending on who you’re applying with, the vehicle may be required to fall within a certain age and mileage limits.
• Vehicle inspection: Depending on the lender, you may need to have the vehicle fully inspected for quality and safety before it can qualify for financing. If you’d like to have it inspected on your own beforehand, schedule an appointment at a service center you trust.

When it comes to liability car insurance, it’s important to remember that this coverage is for the victim of the accident and not the at-fault driver. It’s recommended to set proper limits on your liability coverage that matches how much you can offer.

Liability Coverage Limits

When it’s time to set up your plan with your Plano agent, discuss the amount of coverage needed, know the minimum coverage, and what exactly the insurance company will pay for. When it comes to coverage limits, they can either be split or housed as a single limit. And here is how that works:

• A split limit will allow you to select individual maximums for bodily injury payments per person, for all people injured, and all property damage.
• With a single limit, there is no total limit per person. The lump sum will spread across all those injured and all property damaged.

Learn More About Insurance Coverage at Longo Toyota of Prosper

Buying a new or used vehicle means going over, and understanding, all available financing, and auto insurance options thoroughly. Also, be sure you’re following state guidelines while also selecting the coverage that’s appropriate for your needs. Contact us anytime if you have questions!