Hot Rod Financing - How to Finance a Street Rod

Financing a hot rod or any other type of street rod is not difficult, but there are differences with this type of loan compared to a conventional daily driver vehicle loan. Figuring out the financing is easy for lenders with conventional vehicles since there are price guides on each model, year, and condition of the vehicle. A hot rods value is in the details of the vehicle. The cost of the parts can come into play, and whether the street rod was designed or built by a well known builder, etc. It can be hard to determine the true value of a hot rod, which is why you will need to go through a specialty collector car lender rather than a standard lender. The length of loans can be substantially higher than standard auto loans as well, sometimes up to 12 years depending on the amount being borrowed. Of course the longer the loan period, the higher the interest rate will be.

Steps to Securing a Hot Rod Loan
Knowing your credit score before starting the loan process for street rod will be important. Specialty auto lenders require your credit score to be higher than for a standard car purchase. Lenders are very picky with credit scores on hot rod loans, mainly because it is hard to figure out the true value of these vehicles. A credit score above 700 will put you in great shape to be prequalifed, but once you start getting into the 600's you may have a harder time securing a loan.

After you prequalify for a loan, you generally have 30 to 60 days to find a rod before you have to reapply. It may be best to prequalify if you know you will be finding and buying a hot rod in a few weeks. You will not be wasting your time or a sellers time if you find out that you can't get a loan, and it will just speed up the process once you find the hot rod you want to buy.

Determining A Hot Rod Loan Amount
When determining the amount you will need for a hot rod loan, don't forget about shipping costs, travel, and inspection services. You may be able to pay these without the loan, but keep these in mind if you want the loan to cover everything. If you are purchasing the street rod from an online ad or other ad with out of state rods, you may want to travel to the location to see the hot rod firsthand. If you can't do that, there are many inspection services out there that will take a detailed look at the hot rod and document the vehicle in detail for you to inspect before purchasing. These inspections can cost a few hundred dollars. Shipping costs can be in the thousands of dollars range if you are transporting the street rod across the country, and if you want it in a covered transport, etc. All these details can add up.
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