The best Ways to Finance a Classic Car


Are you looking to purchase a Classic Car? Lenders often base their risk (and interest rates) on the age of a car but when it comes to classic cars; the same rules don’t always apply.

A Classic Car tends to retain its value and perhaps even increase in value over time, so the risk to a lender is not always linear with the age of a car. That’s why many lenders offer some very good interest rates and low deposit loans on these types of cars. Not all lenders will fund them however, so your options may be limited. Finance brokers have a panel of lenders who are dedicated to lending for classic cars.

So, what type of loan is available for classic cars, and what is the best way to go?

Most reputable lenders will consider financing the purchase for customers with a strong profile. Traditional, secured loans are available and the interest rates on offer will depend on your profile – such as credit score, employment stability and deposit.

Lenders may request an independent valuation on the car, or look for more recent sales evidence of similar vehicles.

An unsecured loan is also an option, whereby the loan is not secured against the car. The risk assessment does not involve the car you are purchasing, but your credit profile. There are some lenders who specialize in unsecured lending, offering some very low interest rates.

To better understand the differences between secured and unsecured loans, read our blog – Secured vs Unsecured.

To determine the best way to finance the purchase of a classic car, you should consult a finance broker who will be able to guide you through the process.

What Loan terms can you expect?

Classic Car Finance is specialized, but the terms available to you are not too different to finance on more traditional vehicles:

  • Up to 5-year loan terms

  • Low or no deposit loans

  • Fixed interest rates

  • Extra Repayments

  • Weekly, fortnightly or monthly repayments

  • Ability to purchase from a Private Seller, Dealer or Auction House.

Private Sales and Classic Cars

If you are purchasing your classic car privately, then the process is slightly different to that of purchasing through a Car Dealer. Additional checks will be made on the Vendor – such as identity checks, PPSR and proof of bank details. And your broker or banker will ensure appropriate documentation is signed by all parties, confirming the asset being purchased and the terms of the sale.

If the loan is a secured loan, the Lender will make many of the necessary checks to ensure you and the Lender are protected.

To read more on private sales, read our blog on Private Sales made easy.

Insuring your Classic Car

If the loan is secured against the car, the Lender will require it to be fully comprehensively insured. Proof of the Insurance policy will be required prior to settlement, by way of a Certificate of Currency from the Insurer. The Lenders name must also be noted on the policy.

If the loan is unsecured, then the Lender does not require proof of the policy.

Finding a loan to purchase a classic car, muscle car or a vintage car; should not be a complicated process. The team at are always available to help guide you through the process. We will find the best deal for you.

The information is intended to be of a general nature only. We do not accept any legal responsibility for any loss incurred as a result of reliance upon it – please make your own enquiries.

Any advice contained in this document has been prepared without taking into account your particular objectives, financial situation or needs. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs.

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