Anyone who truly loves cars will realise how difficult it can be to get a loan for modifications or to buy a vintage or truly unique car. If you’re buying a grey import or a car with the latest, power-boosting modifications, most lenders won’t even consider your application. This is when using a car loan broker can help, because you’ll get advice based on their experience and knowledge of the market, including which lenders will relax the rules to finance the car of your dreams.
Why are unique cars hard to finance?
Modified or vintage cars can be hard to finance, mostly because the condition of the car can vary, and lenders are less certain whether the car you’re providing as security will have enough value to cover the amount you borrow to purchase it.
This is why many lenders won’t even consider a car that’s been modified, or is more than seven years old. There are specific lenders in Australia who understand the passion that car enthusiasts have for their cars, and they are on your side to help you purchase the car of your dreams.
Here’s how you can maximise your chances of approval:
How To Get Unique Car Finance
1. Bring a deposit
Putting a deposit towards the car means you’ll borrow a smaller amount, plus you’ll have more equity in the car when you purchase it. This will give the lender more confidence in your application, and increase your likelihood of approval.
2. Get a verified valuation of the car
With classic cars or muscle cars, the value of the car can seem a little subjective to anyone who is not an enthusiast. If you look up the Red Book value of the car you want to buy, you might find that it’s a lot less than the price you’re willing to pay for it.
This is because the modifications and condition of the car aren’t taken into account.
Getting an independent valuation from a lender approved valuer who understands your passion for cars will give you the bargaining power you need to get finance for the true value of your dream car. Ask your lending manager about where you can get an approved valuation for the car you’re interested in.
3. Seek advice from a car loan broker to cover all options
Competition in the car loans market is increasing, and many of the smaller or online lenders focus on a small segment of the market to carve out a niche. Chances are, whatever car you’re looking at buying, there’s a lender who specialises in just that model.
A car loan broker can help you to narrow down your lender options from what’s available, saving you time and heartache of being rejected when you apply to a bank that doesn’t fully appreciate your passion.
4. Arrange comprehensive car insurance
Having comprehensive car insurance in place is essential for the settlement of your loan. Insurance is one place where you can potentially save a lot of money, so put aside some time to research where you can get the best deal on insurance that covers the specific modifications and model of car that you want.
With the right insurance you can save hundreds of dollars each year, and some lenders will allow you to include the insurance along with your car loan too.
5. Drive your dream car
Once you’ve got a muscle car or classic car loan pre-approval, it’s a simple as sealing the deal for the contract of sale and final loan settlement.
You can drive the car of your dreams when you seek advice from the right people.