There is one thing that prevents many of us from purchasing the next Aero Car of our dreams…MONEY. Until recently I believed there was no one who would loan a first time collector or even a big time collector money to purchase a classic car. That all came to an end when I became aware of Woodside Credit. When I sold our 1969 AMC AMX the buyer was able to borrow the money he needed to complete the transaction. The process, from the my standpoint, was absolutely painless and in many ways made the entire procedure easier than dealing with a buyer direct. I never know for sure when I sell a collector car if the buyer really has the money; I never really feel safe that the bank check I’m getting is legit and taking a stack of $100 bills is not a great idea either.
If anyone could get a loan on a classic car I imagined that the interest rate and terms for the loan would be out there similar to the rates in the Peanut Farmer Jimmy Carter President days of high inflation. I expected an interest rate similar to a credit card level of 16.9% or higher. Even if a buyer could manage the interest rates you would expect that the maximum term of the loan to be 24 to 36 months, right? NOPE, not even close on either assumption.
Woodside Credit starts their rates out at 4.99% fixed! They require 20% down but with monthly payments you can take up to 12 years to pay it back. Let’s say you found that perfect collector car you have been dreaming about since high school but it will set you back $150,000. Here are the numbers; 20% down = $30,000; $120,000 for 12 years at 4.99% would be $1,109.00 a month.
Now that is still a big payment for most of us but if you are looking for a collector car at $50,000 then its $10,000 down and a payment of $370 per month. The maximum loan is $500,000. Their minimum loan is only $10,000 which equates to a car price of $12,000 with $2,000 down.This puts the collector car market into the hands of almost anyone who has a little discretionary money left over at the end of the month. Now, no matter where the prices of Talladegas and Spoiler/Spoiler IIs go you have a way to purchase one!
When I was talking to a representative from Woodside Credit about how their program works he said that most borrowers pay off the loans early and many use it as a short term financing until the sell another car or what ever. Woodside Credit is also the Preferred lender for Barrett Jackson so you know they are a legitimate company!