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Classic car financing: one time classic in installments, please!

Beate Jeske
Classic car financing
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D as new car dealers are trying to lure buyers with small monthly payments everyday life. In the case of oldtimers and youngtimers, however, this form of financing still meets with major reservations. It was no different when buying a new car 20 years ago, and now more than two thirds of Germans finance their cars.

So the potential for classic car leasing is there, and there are already specialists such as the market leader AIL Classic Leasing (www.ail.de) as well as X-Leasing (www.x-leasing.de) and Leasconcept (www.lease-a-classic.de). Because unlike full financing, in which the entire purchase price is paid off, there is always a residual value at the end of the contract period with leasing and the three-way financing that is also offered. Calculating that several years in advance is already considered tricky with brand new cars, with historical models only experts succeed.

Avoids conservative calculation high additional payment

Anyone who hopes to drive for free because of the high value constancy will usually be disappointed when looking at the sample calculations (see photo show). For a term of three years, AIL Leasing calculates a residual value of 40 percent for common models. The dream of a 30-year-old Porsche 911 worth 25,000 euros can be realized with a down payment of 5,000 euros for a monthly rate of 365 euros. The rather conservative calculation avoids high back payments at the end of the term. After all: if the car is worth more, the customer will receive at least 75 percent of the additional proceeds from the sale. This is already prescribed by the legislator.

In order to even get a financing or leasing offer for the dream car, the company requires an appraisal. 'But you need that for your own safety and for insurance,' explains AIL managing director Rolf Huber. In terms of price, the majority of AIL leasing vehicles range between 40,000 and 45,000 euros. The lower limit for concluding a leasing contract is 10,000 euros. The financing is therefore also suitable for beginners.

Although the majority of customers are business people who use the classic as a company car in everyday life, there are also suitable solutions for private individuals. Huber then advises against leasing: 'With leasing you have to pay VAT on the rate, so financing is cheaper for private individuals.'At AIL, this can be three-way financing that is similar to leasing in terms of down payment, installment amount and residual value. The advantage: At the end of the day, the customer decides whether to continue to finance the final installment, to redeem it in one fell swoop or simply to return the car.

Oldtimers as tax-saving models often look through the tax office

Whoever uses the oldtimer as a company car uses, but you should consider: At the end of the term, the car must be returned. If you have a purchase option contractually guaranteed, you run the risk that the tax office will not recognize the entire contract as a lease. This would jeopardize the tax deductibility of the installments.

Even with supposedly clever tax-saving models, one should be cautious if, for example, the rate is set particularly high but the residual value is set very low. In the end, you buy the car for a ridiculous price from the lessor and have a large part of the value returned from the tax authorities. A construct that tax offices often see through.

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