Why Hot Rod Financing is Different

Hot rod financing comes with unique considerations compared to a daily driver loan or even a standard classic car loan. These vehicles often feature custom builds, aftermarket modifications, and high-value components that can influence their loan eligibility and structure.

Custom Builds and High Values 

Hot rods are known for their one-of-a-kind modifications, which can make them more valuable than their original factory versions. However, lenders require a complete and roadworthy vehicle to secure a loan, as unfinished project cars introduce a higher level of risk. When financing, expect an appraisal based on the car’s completed value and documented modifications.

Collector Value vs. Daily Use

Unlike a daily driver, a hot rod’s value is largely determined by its collector appeal, quality of restoration, and customization. While many owners purchase hot rods as investments or weekend cruisers, hot rod financing is tailored toward complete vehicles with verifiable worth.

What to Expect When Financing a Complete, Street-Legal Hot Rod 

Appraisal and Documentation 

Before approving a loan, lenders will most likely require a professional appraisal of the vehicle’s value. This includes assessing the quality of modifications, authenticity of parts, and overall condition. Additionally, documentation such as the title, vehicle history, and receipts for major custom work may be necessary.

Insurance Requirements 

Lenders often require proof of specialized classic car insurance before funding a loan. This type of insurance provides agreed-value coverage, ensuring the vehicle is protected for its full appraised worth.

Roadworthy and Street-Legal Compliance 

To qualify for hot rod financing, a hot rod must be complete and street legal. This means it must have functional lights, proper emissions compliance where applicable, and be fully operational. Lenders may request verification that the vehicle meets all necessary regulations.

Ownership Considerations

Unlike traditional auto loans, hot rod financing often requires additional due diligence. Buyers should be prepared for a thorough underwriting process, ensuring the vehicle meets all loan criteria and has a clear title.

Key Factors to Consider Before Hot Rod Financing

Down Payment 

Down payments vary based on the hot rod’s value and lender requirements. The Woodside Credit loan program requires 10-20% down, depending on the purchase price.

Loan Terms

Classic car lenders offer flexible terms, typically ranging from 5 to 10 years. However, Woodside Credit is the only lender that offers loan terms extending up to 15 years, providing lower monthly payments.

Industry Expertise and Valuation Expertise

Working with a lender that specializes in hot rod financing means access to industry experts who understand the nuances of classic and custom car valuations. Lenders, like Woodside Credit, with deep experience in the collector car market can accurately assess a hot rod’s value based on its modifications, provenance, and condition, ensuring a financing structure that aligns with its true worth.

Tips for a Smooth Hot Rod Financing Process

Know Your Budget

Don’t forget, costs can add up—especially with items like insurance, tax, and registration. Spending some extra time thinking about total costs can be beneficial in the long run. (Just a note, Woodside can roll tax, title, and license into your loan.)

Research the Vehicle 

Ensure that the hot rod is fully built, roadworthy, and has documentation to support its value. Incomplete project cars do not qualify for financing with Woodside Credit. 

Work with a Specialized Lender 

A lender experienced in hot rod financing and classic car financing will provide terms that align with the unique nature of these vehicles. 

Have Documentation Ready 

Proper documentation, including vehicle appraisals, titles, and modification records, can streamline the loan approval process.

Why Choose Woodside Credit for Your Hot Rod Financing

 Woodside Credit offers financing tailored to classic and collector cars, including select fully built hot rods. With the Lowest Payments in America and loan terms extending up to 15 years, we make hot rod financing easier than ever. Our process is simple, and our expertise ensures that you receive the best possible loan for your completed hot rod purchase.

Estimate your low payment today!