Classic Car Loans and Financing | Woodside Credit (2024)

FAQs

What credit score do you need for a classic car loan? ›

What credit score do you need to buy a classic car? Like any other financing, the best rates are offered to those with a FICO score of 661 or higher, considered a prime credit score.

The credit score required and other eligibility factors for buying a car vary by lender and loan terms. Still, you typically need a good credit score of 661 or higher to qualify for an auto loan. About 69% of retail vehicle financing is for borrowers with credit scores of 661 or higher, according to Experian.

Financing for Older Cars Can Be Harder to Get

If your car is repossessed and no longer functions or holds its predicted value, your lender may end up with a loss on your loan. To help offset these factors, used cars can have higher interest rates, according to data and analytics company Equifax.

Unstable or insufficient income – If you can't prove how much you make or your source of income, an approval isn't likely. Lenders want to be certain you can afford your payments. It won't matter how good your credit score is if they're not sure of your income.

This is because older vehicles are financed by borrowers with lower credit scores, have lower resale values, have more mechanical issues, have higher repossession rates, and carry higher interest rates due to increased lender risk.

There isn't one specific score that's required to buy a car because lenders have different standards. However, the vast majority of borrowers have scores of 661 or higher.

In general, you'll need a FICO credit score of at least 600 to qualify for a traditional auto loan, but the minimum credit score required with vary from lender to lender. As interest rates increase due to inflation, securing a subprime auto loan may be more difficult — but not impossible.

It's essential to be knowledgeable about how your auto loan process will be different than someone with a higher score. You might not have the same options, but you can still get an auto loan with a 600 credit score.

Key Takeaways. Your credit score is a major factor in whether you'll be approved for a car loan. Some lenders use specialized credit scores, such as a FICO Auto Score. In general, you'll need at least prime credit, meaning a credit score of 661 or up, to get a loan at a good interest rate.

The main advantage of financing a classic car is that it tends to appreciate over time, making it a good investment. Additionally, lenders may offer lower interest rates on classic car loans because they know the car will likely increase in value.

What is the longest you can finance a classic car? ›

Low fixed rates and up to 7 years financing for classic cars.

Some lenders, like Woodside Credit, allow well-qualified borrowers to finance classic cars for up to 180 months or 15 years.

Borrowers may be denied for vehicle financing due to errors in the application, bad or limited credit or a large amount of debt. The first step following auto loan rejection is to contact the lender to request the specific reasons for the denial.

According to the FICO® scale, a good credit score falls between 670 and 739. However, having a score in that range or above doesn't guarantee approval on credit applications.

Recent data from the Federal Reserve Bank of New York's Survey of Consumer Expectations Credit Access Survey revealed an all-time high in rejections: 14.2 percent of surveyed applicants said they were denied an auto loan in the last 12 months.

For insurance and registration purposes, the age of a classic car, in most cases, is at least 20 years old but not more than 40 years old.

Classic Car Financing and Loans from 5.95% APR - Collector Car Lending at Star One.

Typically, a bank won't finance any vehicle older than ten years, even if a borrower has good credit.