Car loans for classic cars

Find out how to get a car loan for a classic car

Getting a loan for a classic car can help out if you don't have the full amount of funding available, but are otherwise ready to make a purchase. When taken care of, a classic car can be a practical and enjoyable investment. However, with a lot of collectors and enthusiasts out there, it can be a competitive market. Not having enough cash upfront means you might miss out on a gem without finance.

Considering your finances and comparing your options is an important step towards finding a classic car loan with a repayment plan that works for you. Find out how to do so in this guide.

What to know about classic car loans

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 lenders reduce their risk level. This, in turn, means that they can offer lower rates to customers.
  • No age restrictions for vehicles: Typical car loans will often have age restrictions on the vehicles you can buy. These can range anywhere from 2 - 10 years. As classic cars are far older but are high-value purchases, the age restriction is more lax.
  • Different types of 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 qualify for - loan amount, repayment term, interest rate and whether or not the loan requires asset security 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.

Loans that can be used to buy classic cars

Finder survey: How do Australians of different ages finance a new car?

Response
My bank35.85%
Unsure35.49%
Cheapest rate on the market22.01%
A big 4 lender5.93%
Peer-to-peer lender0.72%
Source: Finder survey by Pure Profile of 1113 Australians, December 2023

How do I value a classic car?

Depending on its condition, rarity, originality, collector appeal and 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.

In order to accommodate the wide variation in car values, classic car loans will often be very flexible in the amounts you can borrow.

What to look for in a classic car loan

When considering getting a classic car loan, 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? 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? With bad credit, you might only qualify for a secured classic car loan. But, with a stronger credit score, you could qualify for an unsecured loan.

Remember that he total amount you'll be repaying and your overall value for money is often dependent on more than just the interest rate. Always consider all factors of a loan before applying.

What to consider

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. Check with the lender prior to borrowing what type of cover they might require. While it’s generally a good idea to take out cover to protect your vehicle, there might be conditions around the type of cover required which make it less suitable for you.

Specialised classic car insurance policies can include benefits such as lay up periods to reduce premiums. These 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?

While some lenders will have a specific product called classic car financing, 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 can consider:

  • A personal loan

    Personal loans can usually be spent on almost anything. There are unsecured or secured options. An unsecured personal loan might carry a higher interest rate than another alternative, but may also deliver wide-ranging benefits. Secured personal loans usually have lower rates, but you'll have to check as to what qualifies as security on the loan. Some secured loans may also have restrictions on what you can spend your funds on.

  • 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 and classic and prestige vehicles. Therefore, 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. For this reason, it may be worth consulting a finance broker. They can consider specialised classic car loans alongside other options and help you find the one that’s right for you.

  • Dealer finance

    Many car dealers may be willing to offer you financing. While this can be a convenient option, it’s still worth comparing their products alongside financing from other providers to make sure you’re making a smart investment. Car dealership finance can be more expensive than online loan providers. So, it's best to do your research.

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. To apply for any of the finance options on this page, simply click "Go to site" to submit an application.

Picture: Shutterstock

Elizabeth Barry's headshot
Lead Editor

Elizabeth Barry was the lead editor for Finder. She has over 10 years' experience writing about a range of topics with a focus on personal finance. You’ll find her writing and commentary in a range of publications and media including Seven News, the ABC, MSN, the Irish Times and Singapore Business Review. See full bio

Elizabeth's expertise
Elizabeth has written 211 Finder guides across topics including:
  • Banking
  • Personal finance
  • Investing

More guides on Finder

  • How to check a car’s service history

    Checking a car's service history can help you avoid major issues when you buy a used car. Here's how it works.

  • Rent an Uber car in the Gold Coast

    There's a way you can drive with Uber without using your own car – find out how.

  • Rent a car for Uber in Canberra

    Find out how you could rent a car to drive with Uber in Canberra

  • Tesla Superchargers Map: Where you can charge in Australia

    Find out the extent of Australia's Tesla Supercharger network with our complete map of every charging station.

  • Cheap Car Loans Australia

    When you're shopping around for a new car, you surely want the cheapest car loan possible.

  • Best car loans – 4 expert picks

    The best car loan isn't necessarily the one with the lowest rate. Learn how to spot the best car loans and compare 15+ car loan products with Finder.

  • Used car loans comparison

    You can still get a car loan if you want to finance a used car. Find out how you can get a used car loan and see what rates are available for the used car you want. Learn how to best compare lenders and apply for your loan today.

  • Fixed Rate Car Loans

    Know what your repayments will be for the duration of your loan term with a fixed rate car loan. As your loan is secured you can find competitive rates and lock them in at the beginning, keeping them low while you make ongoing repayments. Find out if the loan is right for you.

  • Variable rate car loans

    A variable rate car loan can give you a way to finance your new car purchase while letting you take advantage of any favourable interest rates should they become available. Compare your options today and see what's available.

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

2 Responses

    Default Gravatar
    AlisonMarch 24, 2018

    Looking for personal loan

      Default Gravatar
      LiezlMarch 24, 2018

      Hi Alison,

      Thanks for visiting Finder!

      Our personal loan Finder will help you compare various loan products. Simply select the type of loan you’re looking for from the left column of the page and start comparing your options. In case you’re interested in having your loan pre-approved, you can check our guide on how pre-approval works for personal loans and which lenders offer it.

      Once you have chosen a particular lender, you may then click on the “Go to site” button and you will be redirected to the lender’s website where you can proceed with your loan application or get in touch with their representatives for further assistance.

      Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you. You can also contact the provider if you have specific questions.

      Cheers,
      Liezl

Go to site