So, you’ve reached that certain age when you can’t stop daydreaming about feeling the warm breeze in your hair as you cruise down the open road in a beautiful classic car. You can make this dream a reality, but laying the financial groundwork first is wise. Read on to discover how to prepare your finances before buying a classic car.
Build Your Credit To Get a Good Loan
Bad credit, though perhaps not your fault, can land you with a high-interest loan that prevents you from even considering buying that 1965 Mustang. So before you start shopping around for your dream car, make sure your credit score is in decent shape. By no means do you need a score of 850 (though if you have it, keep it!). However, you should aim to be in the good-to-excellent range (at least 670) to secure a comfortable loan.
You can start by checking your free annual credit report and ensuring you’re timely with your bill payments and credit card management. Life happens, and sometimes we slip up, but taking the time to build your credit score will pay off in the long run when you secure that sweet loan.
Set Realistic Cost Expectations
Now, we need to have a little heart-to-heart. As much as you may want that pristine, award-winning 1957 Chevy Bel Air, setting realistic expectations of how much it’ll actually cost is important. Besides the purchase price, consider the average cost per year to maintain a classic car. These costs typically increase with the caliber of the classic car, and you might have to budget for upward of five thousand dollars a year.
Save and Be Prepared for Big Expenses
By now, you’ve done your homework on the costs involved and have built a good credit score. Now it’s time to layer on some savings for a down payment and cushion for those curveballs life tends to pitch. To avoid having to sell your dream car because of a surprise medical bill or home repair, have a financial safety net in place. This ensures you can keep those joyrides coming for years.
Understanding how to prepare your finances before buying a classic car is essential for a smooth and stress-free experience. Soon, you’ll be conquering the open road and turning heads in your gorgeous classic car!
