Introduction: Can You Get a Loan for a Classic Car Over 25 Years Old?
Buying a classic car (25+ years old) is different from financing a regular vehicle. Most traditional lenders won’t finance cars older than 10-15 years, but specialist lenders offer classic car loans designed for collectible, vintage, and enthusiast vehicles.
✔ Yes, you can finance a classic car, but not through most major banks.
✔ Classic car loans may have different terms, such as balloon payments or higher deposits.
✔ Some lenders allow classic cars to be used as collateral, but valuation rules apply.
This guide explains how to finance a classic car over 25 years old, which lenders accept applications, and how to boost your approval chances.
1. Why Traditional Lenders Don’t Offer Loans for Classic Cars
📌 Challenges with financing classic cars include:
✔ Valuation Uncertainty – Unlike standard vehicles, classic cars appreciate in value over time, making it harder for lenders to assess their worth.
✔ Limited Resale Market – If a borrower defaults, classic cars aren’t as easy to resell as modern vehicles.
✔ Unique Loan Structures – Classic car financing often requires higher deposits or shorter loan terms due to the niche market.
🚫 Lenders that typically reject classic car loan applications:
❌ Major banks (ANZ, NAB, CBA, Westpac) – Generally don’t finance cars older than 10-12 years.
❌ Traditional car finance providers – Focus on newer models with predictable depreciation.
💡 Tip: Specialist lenders or classic car finance companies are your best option for getting approved.
2. Which Lenders Offer Classic Car Loans in Australia?
📌 Lenders that provide financing for classic vehicles:
| Lender Type | Classic Car Loan Availability | Best For |
|---|---|---|
| Major Banks (ANZ, CBA, NAB, Westpac) | ❌ Not available | Newer cars only |
| Credit Unions (Beyond Bank, CUA, Bank Australia) | ✅ Case-by-case basis | Classic cars with stable value |
| Classic Car Finance Specialists | ✅ Yes | High-value, collectible cars |
| Online Lenders (Plenti, MoneyMe, Now Finance) | ✅ Some accept classic cars | Enthusiast vehicles |
| Private Lenders | ✅ Yes | High-risk applicants, alternative financing |
✔ For lower interest rates: Credit unions and specialist lenders are the best options.
✔ For flexible approval: Online and private lenders may offer classic car finance but at higher rates.
💡 Tip: If your classic car is on the Specialist and Enthusiast Vehicle Scheme (SEVS) list, it may be easier to secure financing.
3. How to Get Approved for a Classic Car Loan
📌 Steps to improve approval chances:
✔ Choose a well-documented classic car – Lenders prefer vehicles with verified value and service history.
✔ Provide a larger deposit (20-30%) – Higher deposits reduce lender risk.
✔ Get an independent valuation – A licensed valuer can confirm the car’s market worth.
✔ Apply with a secured loan (if available) – Some lenders allow the car itself as collateral.
✔ Improve your credit score – A strong financial profile increases approval chances.
💡 Tip: Lenders prefer classic cars that have a strong resale market, such as well-known collector models.
4. Interest Rates for Classic Car Loans
📌 Classic car loans have different interest rates than standard vehicle finance:
| Car Type | Typical Interest Rate | Loan Term Available |
|---|---|---|
| Modern cars (0-5 years old) | ✅ 5-7% | ✅ 3-7 years |
| Used cars (6-10 years old) | ✅ 6-10% | ✅ 3-5 years |
| Older cars (11-15 years old) | ⚠️ 9-15% | ⚠️ 1-3 years |
| Classic cars (25+ years old) | ❌ 8-15%+ | ❌ 1-5 years |
✔ Interest rates for classic cars vary based on rarity, value, and lender policies.
✔ Some classic car loans offer flexible balloon payments to reduce monthly repayments.
💡 Tip: Some lenders offer specialist insurance policies with classic car loans to protect your investment.
5. Alternative Finance Options for Classic Cars
📌 If traditional financing isn’t available, consider these alternatives:
| Option | Best For | Key Considerations |
|---|---|---|
| Secured Classic Car Loan | Classic cars with strong resale value | Uses car as collateral, lower rates |
| Unsecured Personal Loan | Cars over 25 years old | Higher interest rates, no collateral required |
| Auction & Dealer Finance | Buying at classic car auctions | May have high buyer’s fees |
| Co-Signed Loan with a PR or Citizen | Limited credit history | Must have a reliable guarantor |
✔ If standard financing isn’t available, unsecured loans or co-borrowing may be an option.
6. Should You Buy a Classic Car with Finance?
✔ Pros of financing a classic car:
- Potential appreciation in value – Some classic cars increase in worth over time.
- Lower depreciation risk – Unlike modern vehicles, classics don’t lose value as quickly.
- Access to rare models – Finance allows you to own a collector car without upfront payment.
🚫 Cons of financing a classic car:
- Higher interest rates than standard car loans.
- Shorter loan terms (1-5 years), which means higher monthly repayments.
- Requires an independent valuation and possibly specialist insurance.
💡 Tip: If buying a rare or limited-production classic car, consider getting it professionally appraised before applying for finance.
7. Classic Car Finance vs. Standard Car Loans: Key Differences
📌 How classic car loans differ from regular car finance:
| Feature | Classic Car Finance | Standard Car Loan |
|---|---|---|
| Loan Term | ✅ 1-5 years | ✅ 3-7 years |
| Interest Rates | ⚠️ 8-15%+ | ✅ 5-10% |
| Deposit Required | ✅ 20-30% | ⚠️ Sometimes required |
| Car Used as Collateral | ✅ In some cases | ✅ Most common |
| Eligibility Restrictions | ✅ Must be a verified classic | ✅ Newer cars only |
✔ Classic car finance requires more documentation and may have stricter conditions.
✔ Lenders may request proof of collectibility, maintenance history, and insurance.
💡 Tip: If your classic car is eligible for historic registration, it may be cheaper to maintain despite loan costs.
Final Thoughts: Can You Get Finance for a Classic Car Over 25 Years Old?
✔ Yes, classic car financing exists, but it requires a specialist lender or alternative finance options.
✔ Interest rates for classic cars are typically higher than standard car loans.
✔ Expect to pay a higher deposit (20-30%) and provide a detailed valuation.
✔ If you can’t secure traditional financing, an unsecured loan or auction financing may be viable alternatives.
💡 Looking for classic car finance options? Compare lenders today at FinanceTheRide.com.au! 🚗💨
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
