Should you borrow against your classic car or investment vehicle?

This is another important consideration when having your car appraised. A lot of appraisers will encourage using the stated value of a car. The more it's worth the better right? If you're buying a 1962 Ferrari 250GT California maybe so if you buy it right. Your lender and insurance agent may fall hook, line, and sinker for it and give you a loan that far exceeds the value of it. What happens when you suffer financial setback or divorce? Now the vehicle is in play and you're the one on the hook. Your lender is now left holding the bag when the car has become inadequate as collateral. Sure, they're going to take the car and sell it. Then they're going to come after you for the difference. You can kiss that tax write off for loss on the car if you're an investor, just give that to the banks Attorneys. As for the insurance company, they aren't into paying off banks for bad debt or shotgun financial decisions. They aren't going to pay. It's in the fine print. So, now you're out a collector car, cash, on rocky shores with the bank and insurance company, and probably well on your way to becoming a bachelor at the local bar. All because you didn't have an accurate appraisal. It's important to get it right.