Financing a classic car purchase

dealgan

Hi,
I'm considering a bank loan to fund purchase of a classic car.

Are the banks' car loans the best bet, or are there any loan packages specifically tailored to classic car purchases ?

Probably not, but I thought it's worth asking you knowledgable people, just in case !

Thanks.

Merrion

A standard car loan from a bank or building society is probably your best bet. The fact that classic cars have low (or often negative) depreciation is not taken into account but the increased cost of ownership usually balances that out anyway.
What are you thinking of getting?

dealgan

Merrion wrote:

What are you thinking of getting?

I have my eye on a Porsche 911

Kersh

Yes, a bank loan, I did that, 4 years, 20k, no problem.

ds20prefecture

dealgan wrote:

I'm considering a bank loan to fund purchase of a classic car.

Are the banks' car loans the best bet, or are there any loan packages specifically tailored to classic car purchases ?

I went with a bank loan - 10k over 3 years, costs 11k in total. You don't happen to have a limited company handy, do you?

dealgan

ds20prefecture wrote:

You don't happen to have a limited company handy, do you?

Erm, I checked all my pockets, but no.

Why do you ask ?

ds20prefecture

dealgan wrote:

Erm, I checked all my pockets, but no.

Why do you ask ?

Classics make for great company cars. BIK is calculated as income at 30% of the car's price when new per year. I'm not certain, but I think a new 1974 Porsche 911 was about IR£5000, maybe £6000. Say €8000 = €2400 income = €1000 of extra tax paid, but the car is entirely owned, serviced, insured, taxed and run by the company, pre-tax.

Depreciate the car's value on the company over 3 years then buy it from the company at the depreciated value, even though the car retains its actual market value.

Dades

You can pick yourself up a limited company for a few hundred quid. Problem is proving you have a genuine "Activity in the State".

You have to file accounts and if you just have a car as assets, and you driving it, it might look dodgy!

If you had any kind of side business it might work...

http://www.cro.ie/

ds20prefecture

The Atheist wrote:

You can pick yourself up a limited company for a few hundred quid. Problem is proving you have a genuine "Activity in the State".

You have to file accounts and if you just have a car as assets, and you driving it, it might look dodgy!

If you had any kind of side business it might work...

http://www.cro.ie/

Ah I don't think it's worth setting one up just for this purpose. But if you were self employed or a director in an existing company it's a no brainer. If you already have a company car scheme, and an extremely open minded employer, you could swing it that way, but TBH I can't see anyone other than you seeing the benefit.

There's no need for it to be dodgy - it's all perfectly above board. You are following the revenue guidelines to the letter.

Sorry - I didn't mean to divert the thread onto matters of tax. It is nice to have the Revenue help with the financing a little, though!

dealgan

Interesting idea. I didn't know that about the valuation !

I think I'm stuck with a loan though

Thanks folks.

shagman

I bought mine by taking out the money on my current credit card , applying for a new card with another company and availing of their 0% interest for 6 months on credit transfers. If I haven't it paid back in 6 months I'll switch it back again and avail of another 6 months 0% interest on the first card.

Now if they were both company cards and in 3 years I bought it back minus the BIK with due depreciation.....ahhhh I'm gettin a headache!

MercMad

I've seen adds in the UK Classic mags for Classic Car Finanace and I know its huge in Germany, they do lease deals etc !!

Maybe you should buy a mag and try to contact them for the lowdown !