How to Refinance a Classic Car

If you have a classic car that you are paying on, you may be able to free up some money by refinancing that car loan. Refinancing your car loan will usually lower your monthly car payments as well as save you interest costs over the life of the loan. Typically, refinancing provides the most benefits if you are only a couple of years into your loan and your credit has improved since getting the loan.

Instructions

1

Contact the current lender to get the pay off amount of the car loan, the interest rate and to ask if there is a penalty for paying the loan off early. Typically there is not a penalty for doing so, but ask to be certain.

2

Get rate quotes from some specialty lenders, such as Motor Cars Financial, JJ Best Banc & Co. and Woodside Credit (see Resources). Banks typically do not offer loans for classic cars, which means you must use a lender that specializes in classic or collector cars. After you get the quotes, you can review them to see which lender is offering you the best refinancing rate.

3

Complete an application with the lender you have decided to go with. For the application, you typically need the year of the car, make of the car, model of the car, car VIN, car mileage reading, engine size, transmission, your employment information, loan term requested, current loan pay off amount and current lender. As part of the loan, there will be a fee to transfer the lien, which usually ranges between $15 and $25.