As interest in owning classic cars grows and the realization that these investments must be preserved and protected, collector car lending, insurance, and storage are more important than ever. The beginner on a tight budget can overlook financing, insuring, and storing valuable assets. And experienced investors and collectors with plenty of funds might overlook simple ways to reduce their risk and increase their returns on collector cars over the long term by thinking a little bit deeper about lending, insurance, and safe storage options of their valuable asset.
Collector Car Lending
Buying your first collector car can be one of the most exciting purchases you will ever make. Months, sometimes years of hunting and planning for just the right car, and now you’re ready to pull the trigger. Take the plunge. Many car investors and collectors have cash in the bank, which they will use to fund their purchase. But if you are looking to fund your collector car with a loan, there are a few things to keep in mind.
Classic car lending generally applies to cars twenty years or older. Antique cars are 45 years or older, and vintage cars are any make and model built between 1919 and 1930. Although some argue the specifics, these are generally accepted definitions. Consider contacting a lending institution dedicated to the collector car market before making your purchase. You might benefit from knowledgeable professionals who have, in some cases, been involved in hundreds, if not thousands of deals, and can pass on years of lessons learned from the industry.
J.J. Best Banc & Co.
One of the largest and oldest collector car lending companies in the U.S. is J.J. Best Banc & Co. They’ve been in the business of collector car lending for decades and employ a staff of industry experts when it comes time to finance your next purchase. They offer loan terms up to 10 years and will finance cars built as early as 1900. J.J. Best Banc also gives fast approvals in as little as five minutes. From antique cars, exotics, hot rods, muscle cars, and kit cars, J.J. Best is a resource you’ll want to check out when financing your next collector car purchase.
Another great resource for classic and collector car financing and lending is Woodside Credit. They offer loan amounts from $20,000 to $600,000 and terms up to 15 years in duration. Woodside Credit defines a classic car as any vehicle 25 years or older and will offer lending on antiques, vintage and classic models. They will also work with dealerships and auction houses and private transactions between individual buyers and sellers.
A third option for collector car lending is LightStream, who’s focus is making classic car loans uncomplicated and streamlined. Depending on your credit profile, you’ll receive fast approval for your car loan. You can also have the funds for your purchase deposited into your bank account the same day you apply for a loan. LightStream offers loans from $5,000 to $100,000 and features a nearly paperless process through the companies website.
Collector Car Insurance
Once you make that purchase of the classic car you’ve had your eye on for months, it’s time to insure it. Owning a fifty or sixty-year-old car can be exhilarating, but it can also be full of headaches if you’re not properly insured. Things will happen that you just can’t anticipate, but you always need to protect your investments and manage risk to the best of your ability. Having good collector car insurance is an important piece of the puzzle.
Hagerty Collector Car Insurance
One of the largest and most recognized collector car insurance companies out there is Hagerty. They have a great website filled with resources. If you haven’t spent some time there learning about all they have to offer beyond insurance, I would highly advise you to visit them.
They give a great explanation of how collector car insurance is different from regular car insurance. A few of the main reasons insurance for classic cars differ from your typical auto insurance are lower premiums, flexible usage coverage, and something called “agreed value” coverage.
USAA Car Insurance Storage Mode
One thing collector car owners should remember is many insurance companies offer a “storage mode” for your car. USAA car insurance storage mode offers the ability to reduce your insurance premiums when you put your vehicle in storage. The reduced insurance premiums will often help offset the cost of placing the vehicle in a storage facility during periods when you won’t be driving. Best of all, you can retain the “comprehensive” aspect of your policy to continue protecting your investment from fire, hail, and theft. Car storage insurance from USAA, Geico, and many other major insurance carriers will help reduce your premiums while your car is off the road for an extended period.
Collector Car Storage
What do you do when your car collection outgrows your garage? One of the fastest-growing trends in the collector car business has got to be storage. Entire buildings are now dedicated to the storage of valuable vehicles. The facilities are popping up across the globe, and these buildings are not simply standard warehouses. Many of them resemble gigantic impenetrable vaults with luxury amenities and the latest technology for car storage.
Westside Collector Car Storage
If you’re a collector car enthusiast, then I have a real treat for you. It’s found in one of the most unlikely places on the internet, on a subject that you may not have previously thought about for more than five seconds. The subject is collector car storage, and the company is Westside Collector Car Storage in Los Angeles. Matt Farah is the owner of Westside Collector Car Storage, and he’s produced a video series documenting the construction of his new storage facility.
If you want to see how much thought and planning goes into a state of the art modern collector car storage facility, then you must watch the four-part series from the owner, Matt Farah. I was surprisingly glued to every episode. Matt does an excellent job giving a tour of his facility and explaining the details many people might never consider when choosing where to store their valuable car. Matt has all the bases covered from high-tech security, massive heating, ventilation, air conditioning, and ventilation systems and even planning the entry driveway. The facility is open and ready for cars, located in Playa Vista, California, on the west side of Los Angeles.
Matt Farah is a journalist and host of the YouTube channel and podcast, “The Smoking Tire,” where he features weekly discussions with people from the auto and entertainment industry. Matt was even smart enough to include his podcast recording studio right inside his Westside car storage facility. Be sure to check them out.