For passionate car enthusiasts, even those with the means to write a check for $100,000 or more, financing can be the smarter choice. Why? Because savvy buyers understand that preserving liquidity and leveraging low interest rates can offer more flexibility than paying cash — especially when it comes to purchasing exotic, vintage, or collector cars.
In this guide, we explore the key considerations for financing high-end cars purchased through private sales or auctions, and how the right financial strategy can benefit both buyers and sellers.
Why Finance a Collector or Exotic Car?
While some buyers prefer to pay in cash to avoid interest payments, many high-net-worth individuals choose financing to take advantage of their creditworthiness and preserve capital. Financing isn’t a sign you can’t afford the car — it’s a strategic move, much like using a mortgage to buy a home.
Using financing enables collectors to:
- Maintain cashflow for other investments
- Leverage favorable interest rates
- Access cars they may not otherwise consider
Financing Opens Doors for Enthusiasts
From Ferraris to Porsches, financing plays a vital role in keeping the collector car market thriving. Flexible financing options allow more enthusiasts to experience the joy of owning rare and exotic cars — even if only for a few years.
But not all financing is created equal. Before jumping in, it’s important to weigh the terms, especially if you plan to hold the car for just 18–24 months which is a typical timeframe for many collectors.
Expert Insight: “Some finance companies offer long-term loans to lower monthly payments, but that doesn’t help if you only keep the car for two years,” says Doug Ewing, VP of Sales at Premier Financial Services.
The Downside of Long-Term Loans
Loans with terms of 96-144 months may look attractive at first glance, but most cars depreciate in value. Paying upfront sales tax and front-loaded interest, only to sell within two years, can result in a financial loss – especially if the car doesn’t appreciate.
Home Equity Loans: No Longer a Go-To Option
Prior to 2017, many car collectors used home equity loans to finance the purchase of collector cars, taking advantage of the ability to deduct interest on those loans. However since the tax law changes in 2017, which limited the deduction for interest on home equity loans where the proceeds are used to buy, build, or improve the home that secures the loan, this financing option has been significantly less attractive for car collectors.
What About Leasing an Exotic or Vintage Car?
Leasing isn’t just for new sedans. It’s increasingly popular among collectors, especially those who swap cars frequently. But it’s essential to choose a lease structure that suits exotic and vintage vehicles.
Unlike traditional closed-end leases, Premier Financial Services offers a simple lease designed for high-end and classic vehicles.
This structure:
- Is based on a simple-interest balloon note
- Allows early termination after 12 months
- Lets you switch cars mid-lease with no penalty
- Offers potential tax savings (in most states sales tax is paid monthly, not upfront)
Pro Tip: In states like California, you don’t get sales tax credit on trade-ins. Leasing avoids paying full sales tax upfront.
Transparent Terms and Realistic Residuals
Premier’s lease terms typically span 60 months, with monthly payments often lower than standard 60-month financing. Customers receive an amortization schedule at lease start, so there are no surprises.
Vintage cars typically require a 20% down payment to safeguard against market fluctuations. For newer exotics, down payments vary based on credit and vehicle type.
If the car appreciates, the lessee keeps the equity. But buyers should always prioritize passion over profit. “Most cars today aren’t appreciating in value,” says Ewing. “Buy them to drive and enjoy.”
Business Use? Leasing May Offer Tax Advantages
Self-employed buyers may find leasing more advantageous than mileage deductions, especially if the car is used occasionally for business. Leasing through a business may allow pre-tax dollars to cover the monthly payment — but always consult a tax advisor first.
Sellers: Don’t Let Financing Deter You
Some sellers are wary of buyers who plan to lease. But with the right partner, the process is seamless. Premier coordinates with sellers to ensure a smooth transaction, including:
- Direct communication between buyer, seller, and lender
- Clear timeline for vehicle inspection and ownership transfer
- Secure online document signing and insured payment
Ewing assures sellers: “We’ve streamlined the process. Most deals are completed within a day once approved.”
Final Thoughts: Finance the Experience, Not Just the Car
Financing a classic or exotic car isn’t just about driving a luxury vehicle — it’s about creating memories, enjoying the ride, and joining a passionate community of enthusiasts.
By working with a trusted financing partner and considering all costs (like insurance, taxes, and maintenance), you can enjoy your dream car without compromising financial flexibility.
