I recently bought an vintage Humber 12/25 all weather tourer which was a bargain but obvious needed a bit of TLC and restoration work done on it. So have paid out a sizeable amount on the car I was then looking into getting a loan to help me do the restorations and I was really surprised that there were not many companies out there that offered a deal for specialist car finance just for restoration. I could have easily got a loan for the purchase of the car but not for the restoration. Now I’m thinking that is really bad as there must be other out there who have an old classic and want to do it up. Hence I’m writing the article to show you what I’ve found out.
If you look carefully there are just a few companies out there who understand the enthusiasts dilemma and provide just the right deal depending on the type of car you are restoring.
Restorative deals with Specialist Car Finance
The best deal I found for Specialist Car Finance was called a Restoration Equity Loan which was great because it provided money for any restoration or customisation work required but also allowed me to keep possession of the vehicle. The amount I could borrow was set to the vehicle and considered the current market value of the car in the current condition and then the project market of the vehicle after the work was completed. However the loans were quite generous and ranged from £10,000 to £50,000.
All payments had to be monthly payments and the time length was up to 36 months. They even offered to transfer the money directly to my restorer so that work could begin immediately and this could be done in either one payment or a series of partial payments.
The flexibility was even great as I have the opportunity to pay the loan off sooner and even make a lump sump payment. However there was a small prepayment penalty if I paid the entire loan off too early. Interest rates did vary with the type of vehicle however they were generally very competitive.