Car loans for classic cars
Have your eye on a prize? A classic car loan can help you drive away with it.
When taken care of, a classic car can be a practical and enjoyable investment. But with a lot of collectors and enthusiasts out there, it can be a competitive market and not having enough savings put away means you might miss out on a gem.
Classic car loans can help out if you don’t have the full amount available but you’re otherwise ready to make a purchase. Consider your finances and compare your options to find a classic car loan with a repayment plan that works for you.
Compare a range of car loan options
Loans that can be used to buy classic cars
- Harmoney Unsecured Personal Loan: 7.69% p.a. comparison rate. A personal loan with a competitive rate based on your credit score.
- Pepper Money Unsecured Personal Loan: 9.99% p.a. comparison rate. An unsecured personal loan that could be used for a classic car.
- SocietyOne Unsecured Personal Loan: 9.51% p.a. comparison rate. A SocietyOne personal loan offers lower rates for good credit borrowers.
- Latitude Personal Loans: 15.19% p.a. comparison rate. Borrow up to $70,000 with the Latitude Finance Services personal loan.
What to know about car loans for classic cars
Classic car loans share a lot of features with standard car loans, but can also have some defining characteristics that set them apart.
- Stricter credit requirements: Many classic car loan providers will only accept customers with a good credit score. Good credit borrowers help the lender reduce its risk level, so it can in turn offer lower rates to other customers.
- No age restrictions for vehicles: Typical car loans will often have age restrictions, such as 5 or 10 years, on the vehicles you can buy. As classic cars are far older but are high-value purchases, the age restriction is more lax.
- Different type restrictions on vehicles: Classic car loans can often be used to buy unique, muscle or other rare vehicles while everyday car loans might not let you.
- Expert valuations: Sometimes there may not be established guidelines for valuing a specific classic car. Classic car loan providers will often have experts who can establish the car’s value.
- Loan options to match your credit: The options you can get, including loan amount, repayment term, secured or unsecured and interest rate, will often be dependent on your credit. For example, if you’re looking for a bad credit muscle car loan you might only be able to get a secured loan.
How to value a classic car
In order to accommodate the wide variation in car values, classic car loans will often be very flexible in the amounts you can borrow. Depending on its condition, rarity, originality and collector appeal and many other factors, a classic car might range in value from a few thousand dollars to a few hundred thousand dollars.
There are guides to valuation, but often it requires an expert with some in-depth knowledge of the market. Classic car specialists can be of great help here.
What to look for in a classic car loan
The total amount you’ll be repaying, and your overall value for money, is often dependent on more than just the interest rate. Depending on the provider and your terms, classic car loans, for good credit borrowers, may deliver competitive interest rates. You should also look at:
- Fees: Does the lender charge any fees? Consider the impact these might make on your total payments.
- Repayment period: What is the duration of the loan period, and does it work for you?
- Flexibility: Can you make additional repayments? Are there any early repayment fees? Can you redraw early repayments? The flexibility of a loan can affect how suitable it is for you.
- Security: Does the lender require collateral? Sometimes you might only be able to get a secured loan for a bad credit classic car loan, but might be able to get an unsecured classic car loan with a stronger credit score.
It can also be a good idea to consider any insurance requirements that might come with your car loan. Many car loans will, as a condition of your borrowing, require you to take out comprehensive cover. It’s generally a good idea to do so in order to protect your vehicle, but there might be conditions around the type of cover which mean it’s not preferable for you.
Specialised classic car insurance policies can include benefits such as lay up periods to reduce premiums, which may be more suitable if you’re a collector, or looking to invest in the classic car as an appreciating asset.
What are my other loan options?
Some lenders will have a specific product called classic car financing, with benefits and features that vary widely depending on the provider. However, these aren’t your only options. If you aren’t eligible for a classic car loan, or the terms aren’t right for you, you might also consider:
- A personal loan. An unsecured personal loan might carry higher interest rates than other alternatives, depending on your options, but can deliver wide-ranging benefits and can be spent on almost anything. The amount available may not be enough to finance your purchase, but if you’re only a bit short then a personal loan with favourable rates, such as a secured personal loan, might be a convenient and easy choice.
- A standard car loan. An everyday car loan may be preferable if your chosen muscle or classic car is in line with the lender’s requirements. In many cases, the same providers will have options for financing everyday vehicles, or classic and prestige vehicles and it may be worth seeing if you can get classic car financing from an everyday car loan provider.
- A finance broker. The loan terms and conditions can make a significant difference to your costs in the long run, especially when you opt for a long-term loan. It may be worth consulting a finance broker. They can consider specialised classic car loans alongside the other options and help you find the one that’s right for you.
- Dealer finance. Many car dealers will be willing to offer you financing. While this can be a very convenient and easy option, it’s still worth comparing their products alongside financing from other providers to make sure you’re making a smart investment.
Before you take out any type of finance for a classic car, remember to review all of the costs and features to make sure it suits your needs and budget.
Car Loan OffersImportant Information*
You'll receive a fixed rate of 5.45% p.a.
A low minimum borrowing amount of $2,000 that you can use to purchase a new car or one up to two years old.
You'll receive a fixed rate of 5.49% p.a.
Take advantage of a competitive rate, pre-approval and no early repayment fees when you finance a car under two years old.
You'll receive a fixed rate of 6.99% p.a.
Apply for a loan from $5,000 to finance a new or used car. Flexible repayments and options to finance a classic car.
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