Are you a proud military member and a classic car enthusiast dreaming of owning a vintage beauty that stands the test of time? If so, then USAA (United Services Automobile Association) might just be the answer to your classic car desires. While USAA primarily focuses on financing newer vehicles, it doesn't rule out your possibility of owning a slice of automotive history. USAA finances older vehicles (of 2016 and below) but imposes some restrictions on vehicle age and, consequently, loan terms that you, as a potential borrower, must know before proceeding with the loan. Luckily, this guide by Exotic Car Trader will walk you through the ins and outs of classic car financing from USAA, highlighting the company's perks, benefits, and other important considerations before committing to (financed) classic car ownership.
First of all, what are classic cars? These are typically defined as vehicles aged at least 25 years (or older) and are known for their historical and cultural significance. For a vehicle to be a classic, it must be valuable to collectors and enthusiasts, be well-preserved, and have distinctive characteristics. Classic car finances, meanwhile, are loans specifically tailored for such vehicles, often with unique terms and conditions due to their rarity. To finance these, lenders require accurate car appraisals to determine their fair value, which may differ from conventional, new car appraisals. Upon determining the loan amount, borrowers may choose the lender who understands their unique and tailored needs. Once the loan is approved (and the terms reviewed), borrowers may finalize their purchase and secure appropriate insurance plans. Struggling to find your dream classic car? Why not begin with Exotic Car Trader? With our curated and meticulously appraised classic car listings, make your car search a breeze.
Undoubtedly, a good credit score is your best friend, helping you secure favorable terms and conditions from the chosen lender. Most institutions, including USAA, require excellent credit scores (670 and above) to land competitive interest rates. Moreover, down payment plans vary across lenders, with some requiring substantial down payments (up to 50% of the appraised value) considering the car’s nature.
USAA auto loans typically range from 36 to 72 months, allowing borrowers to spread their finances over longer periods. Additionally, borrowers may tailor (and manage) their finances according to their budgets and financial situations. Of course, longer loan terms come with higher interest rates paid throughout the loan, and vice versa.
Also, refinancing is an integral part of USAA’s financial services, allowing greater financial relief and significant savings. So, borrowers may revise the loan’s terms and conditions to secure favorable interest rates, lower monthly payments, and adjust loan terms according to their financial situation.
Luckily, USAA offers accommodating, highly flexible payment options to fit the needs of its military members. These options range from bi-weekly and bi-monthly schedules to monthly payment plans, ensuring borrowers can manage their finances more effectively.
On the downside, borrowers are required to have a membership to avail of USAA's auto loan services. Thus, active and retired members of the U.S. military and their eligible family members may be able to acquire a USAA auto loan. Non-members, however, may resort to other lenders offering specialized services for classic car financing, as explained below.
With its competitive interest rates and accommodating loan terms, J.J. Best positions itself among the leading (and oldest) companies for classic car financing. It offers loan terms that stretch up to 84 months, allowing borrowers to tailor their budgets according to their financial situation. Meanwhile, loan amounts extend up to $2,000,000, perfect for those wanting to finance high-value classic cars.
Meanwhile, for those looking to borrow loans without using their car as collateral, LightStream is an option worth considering. With its unsecured loans, LightStream simplifies borrowing and lessens financial risk. Moreover, it offers quick and convenient application processing, with the possibility of same-day funding.
So, yes, USAA does finance classic cars under its 'Older Car Loans' plan. However, it is important to note that USAA imposes certain restrictions depending on the car's age, cost, and loan terms, which is nothing that a detailed discussion with a USAA loan officer won't solve. Still, for those not eligible for USAA membership, alternatives like J.J. Best Banc & Co and LightStream may do the job, too. To begin your classic car journey, we'd recommend Exotic Car Trader. Here, discover a meticulously crafted list of exotic classic cars, all appraised and ready for their new home(s).
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