Short answer: Often yes, if the modifications are legal, certified where required and the car is insurable. Lenders generally value a modified car on what the standard model is worth, so the extra spent on modifications usually isn't counted as security. Heavily modified or non-compliant vehicles can be hard to finance anywhere, dealer or not.
Why lenders are cautious with modified cars
A secured car loan uses the vehicle as security. The lender wants to know that if it ever had to sell the car, it could recover a fair amount. Modifications make that harder to predict because:
- Aftermarket parts rarely add resale value in the lender's eyes, and some reduce it.
- Some modifications need engineering approval to stay roadworthy and registrable.
- Insurers may load premiums or refuse cover for certain modifications, and most secured lenders require comprehensive insurance.
Mild vs major modifications
| Type | Examples | Likely lender view |
|---|---|---|
| Minor and common | Tow bar, bull bar, roof racks, canopy on a ute, aftermarket wheels within limits | Usually no issue if it's legal and disclosed. |
| Moderate | Lift kits, suspension changes, exhaust and tune changes | Case by case. Paperwork and insurance matter. |
| Major | Engine swaps, big power upgrades, chassis or body changes | Often needs engineering certification. Fewer lenders will finance it and the loan amount may be limited. |
Buying a modified car from a dealer
The dealer will usually submit your application to one or a few lenders on its panel. If those lenders aren't comfortable with the car, you might be declined or offered less than the price. Things that help:
- Ask the dealer for a full list of modifications and any engineering certificates or compliance plates.
- Check the car is registered in its modified form. Rules on what needs certification vary by state, so check with your state transport authority. The national standard is set out in the Vehicle Standards Bulletin 14 (VSB 14) on the infrastructure.gov.au site.
- Get an insurance quote before you sign anything. If you can't insure it, most lenders won't finance it.
- Expect to cover the gap between the standard-model value and the price with a deposit or trade-in.
Modifying a car you've already financed
Read your loan contract. Many secured loans require you to keep the car in good condition and not make changes that reduce its value without the lender's consent. Tell your insurer about modifications too. Undisclosed modifications are a common reason insurance claims are refused.
Dealer finance or a broker?
Dealer finance is convenient, but the lender choice is limited to the dealer's panel. A licensed broker can compare a broader range of lenders, some of which have more flexible policies on vehicle type and age. Whichever route you take, compare the comparison rate, fees and any balloon before signing.
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General information only. This isn't financial advice. Finance the Ride is a referral service and doesn't hold an Australian Credit Licence. Last reviewed September 2026.
