How to Buy That Classic Car You’ve Always Wanted

For many car lovers, few things compare to owning a meticulously restored classic car. But turning that dream into reality involves more than just finding the right vehicle — it takes careful planning and preparation. From researching the market to applying for financing with a classic car loan and finalizing the sale, there are several important steps involved. 

To help you get started, here are four key steps to take, and what else to consider when buying a classic car: 

1-Set up a dedicated savings account 

The first step toward purchasing a classic car is to set a savings goal. Research the value of the specific make and model you want to buy to set a realistic savings target. If you’re open to looking for cars beyond state lines, you may also want to factor in transport costs with your estimate. Once you have those details sorted, you may want to consider opening a dedicated savings account separate from your other accounts to make tracking your progress easier.   

Even if you aren’t able to save up for the full price outright, having a down payment can help reduce your total costs. A larger down payment can reduce your loan amount, interest costs and monthly payments over time. Some loans may even require a down payment of 10% or more.  

2-Check your credit 

If you’re planning to finance your classic car, your credit history will likely impact your odds of loan approval and can be a factor in determining the rate and other terms you’ll get. Checking your credit score early on in your car buying process will give you more time to raise it if it’s less-than-perfect or limited.  

For auto loans, “good” scores typically start around 660, but generally, the higher your score, the better your chances of qualifying for a lower interest rate.  If your score needs some work, take steps to improve it — like paying bills on time or reducing your credit card balances — and keep track of your progress. You should also check your credit report for errors that could be dragging your score down and dispute any inaccuracies you find.  

3-Consider the vehicle’s condition and value 

When you’re ready to buy a classic car, it’s important not to rush into the first option you find.  While it might seem like a great deal, the car could require significant repairs or restoration that may not be obvious at first glance. Taking your time and doing your homework can help you avoid unexpected costs down the road.  

Vehicle value assessments can help ensure you’re getting a solid deal. There are multiple resources available, like the National Automobile Dealers Association and Classic.com. Value is determined by factors like rarity, restoration quality and general demand. 

Researching the vehicle’s history –– which, depending on the make, model and year can be done through early identifying numbers, serial numbers or its Vehicle Identification Number (VIN) –– can give you insight into repair records, inspections and the number of previous owners. 

4-Understand your financing options 

Your financing options may depend on where you purchase your car as well as your credit history and income. Some of the financing options you may want to consider include: 

• Classic car loan: Designed to cover classic cars, these loans can offer longer terms than traditional car loans and may require a down payment. 

• Personal loan: Funds from personal loans can be deposited directly into your bank account and in some cases, may require providing collateral. 

Other considerations when buying a classic car 

Financing a car purchase is a major consideration, but there are many other factors that should be on your radar, too. For example, classic cars may require specialized insurance. Some classic car insurance policies can be cheaper than traditional ones, but they may also have extra requirements, like dedicated storage and mileage restrictions. 

As with other car purchases, a vehicle registration fee will likely be required by your state’s Department of Motor Vehicles. If you purchase from a dealer, the registration may be taken care of, but that isn’t always the case. Other required fees may vary, depending on where you live. 

Also, be sure to verify the vehicle’s title and ownership history. Some older vehicles may not have a title, depending on the state they originated from, as title requirements have varied across states over time. If a title is missing, check your state’s rules for registering or transferring ownership using alternative documentation. Taking these steps can help ensure a smoother, more secure buying process. 

The bottom line 

Once you decide to buy a classic car, the road to signing the purchase paperwork can be a long one. Figuring out the full scope of a vehicle’s costs as well as making sure it’s up to your standards can help make the journey worth the effort.  

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