How can I get a classic car loan? Classic cars are more than just vehicles; they are timeless pieces of art, history, and passion. Whether it’s a beautifully preserved Porsche 911, a 1960s Corvette, or a vintage Mustang, owning a classic car is a dream for many enthusiasts.
However, financing a classic car isn’t as straightforward as buying a new or used everyday vehicle. Due to their unique value, rarity, and collectible nature, traditional auto loans may not always apply.
Instead, specialized classic car loans or alternative financing routes are often required.
From finding the right lender to knowing what qualifies as a “classic,” there are several steps you must take before hitting the road in your dream ride.
What Is A Classic Car Loan?
Before applying for financing, it’s important to grasp the differences between a standard auto loan and a classic car loan. A classic car loan is designed specifically to finance vehicles that are considered collectible, vintage, or antique.
These loans usually have unique terms, interest rates, and approval requirements.
Features of a classic car loan include:
- Loans are often offered by specialty lenders.
- The vehicle typically must be over 20–25 years old.
- Appraisals or inspections may be required.
- The car’s condition, rarity, and market value are critical.
- Interest rates may be higher or lower depending on the value and usage.
Unlike a traditional car loan where depreciation occurs rapidly, classic cars often appreciate or retain value, so lenders evaluate them as assets rather than liabilities.
Factors That Determines If Your Car Qualifies As A “Classic”
To clear some misconceptions, not all older cars qualify for classic car financing. Lenders typically have criteria to define what counts as a “classic” or “collector” car. Some key factors that determines its qualification include:
- Age: Most lenders require the vehicle to be at least 20 to 25 years old.
- Mileage: Lower mileage is often more desirable.
- Condition: The car must be well-preserved, restored, or in excellent working condition.
- Usage: Classic cars used as daily drivers may not qualify. Limited-use vehicles are preferred.
- Value: The car must hold collectible or investment value, not just age.
To get better information, it is wise to consult the lender’s classic car list or get an appraisal to ensure your vehicle meets their specific standards.
Prepare Your Financial Documents And Credit Profile
Since classic car loans are specialized, lenders may take a more detailed look at your financial history. Hence, preparing your documents and boosting your credit score can improve your chances of approval and secure better loan terms.
Here are the important documents you might need:
- Proof of income (tax returns, pay stubs, or bank statements)
- Vehicle details (VIN, make, model, year, mileage)
- Credit history and score
- Insurance information
- Vehicle appraisal or inspection report
Many lenders require a minimum credit score of 600–700, though higher scores generally receive better interest rates.
The Best Lenders For Classic Car Loans
Unlike mainstream auto lenders, not all banks and credit unions offer classic car financing. You will want to look into lenders who specialize in collector and antique cars.
Here is a list of the top places you can get classic car loans from:
- LightStream: This is a reliable lender that offers classic car financing with flexible terms and no appraisals.
- Woodside Credit: are known for their low monthly payments and long loan terms for high-value cars.
- JJ Best Banc & Co.: This is a specialty lender primarily focused solely on classic and collector car loans.
- Collector Car Lending: Offers financing for restoration projects and collector car purchases.
- Local Credit Unions: You can check out available lenders that offer this service. What’s more, some offer vintage auto loans with member discounts.
In conclusion, you must always compare interest rates, loan terms, fees, and approval timelines before choosing a lender.
Get A Proper Appraisal And Insurance
This is one of the most important steps to take when trying to achieve the goal of a class car loan. Classic car lenders often require a professional appraisal to verify the vehicle’s value. Also, this protects both you and the lender from overpaying or under-insuring the vehicle.
The Certified appraiser examines the car’s condition, originality, and market demand. Appraisals may cost between $100–$500 and a written report is submitted to the lender.
In addition, specialty insurance is usually required. Major companies like Hagerty and Grundy offer policies that cater specifically to classic cars, with agreed value coverage and limited-use plans.
Frequently Asked Questions
Can I Get A Classic Car Loan With Bad Credit?
It’s more challenging, but still possible. Some specialty lenders may work with borrowers who have fair or poor credit. Although, you should prepare because your interest rates and down payments may be higher.
How Much Down Payment Is Required For A Classic Car Loan?
Most lenders ask for 10%–20% down. What’s more, high-value vehicles may require more depending on the appraisal and your credit.
Is An Appraisal Always Required?
It isn’t always required. For example, LightStream doesn’t require an appraisal. However, most lenders focused on collector cars will require one to validate the asset’s worth.
