Car Loans For Classic Cars
Looking for a helping hand buying your dream classic car? With flexible lending partners offering car loans with no age limit, Savvy can help you out.
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Buying a classic car is the dream for drivers across Australia, but they aren’t usually eligible for standard car loans. That’s where Savvy comes in. We’re partnered with flexible lenders who can accept vintage models as security and offer affordable rates in the process.
Whether you’re in the market for a muscle car, restored vehicle or an imported one that otherwise wouldn’t be accepted, we can help you access financing when you need it. Get started with a quick quote now to tell us more about yourself and the car you’re after and you can get approved in just a few days.
Key features and benefits of your classic car loan
No age restrictions
Unlike standard used car loans, there’s no upper limit on the age of your car, so you can buy anything from the Holden VE Commodore to the Volkswagen Beetle.
Borrow up to $100,000
You’ll be able to access any amount from $5,000 up to $100,000 to finance up to 100% of your old car, as well as other costs like insurance.
Competitive interest rates
With competitive rates available for used cars of over 20 years of age, you can secure your interest at an affordable cost.
Borrow over one to five years
You can also choose the term over which you repay your loan, from as short as one year and extending all the way up to five.
Fixed interest
Because your rate is fixed, it remains the same across your loan to enable more accurate budgeting and protect against rate rises.
Customisable repayment schedule
On top of selecting your loan term, you get to choose how often you make your repayments: you can contribute on a weekly, fortnightly or monthly basis.
Why Savvy is the best place to find classic car loans
100% online application
There is no need to send any physical paperwork; everything is online with Savvy, so you don't have to leave the comfort of your home.
Experienced consultants
Our consultants stick with you through the whole process, ensuring that your application meets your lender’s standards to maximise approval chances.
Accredited and informed
As an FBAA-accredited broker, we only partner with the most reputable lenders across the country to find you the ideal used car loan.
Car loans for classic cars explained further
A classic car is a once-in-a-lifetime purchase, and if you’re faced with the chance to snap up your dream car, being held back by financing is the last thing you’ll want. But financing a classic car can be slightly different to other types of loans, so it pays to do your research beforehand. For all you need to know about classic car loans, check out our guide below.
How do classic car loans differ from standard car loans?
While they’re very similar, classic car loans have several unique characteristics that differentiate them from standard car loans.
Naturally, classic cars are much older than cars typically purchased for everyday use, and standard car loans usually have age restrictions that limit how old the car can be in order to qualify for finance. Classic car loans don’t have any such restriction. Additionally, they can be used for different kinds of cars, such as vintage or muscle cars, that again are not likely to be approved for standard car financing.
Classic car purchases are treated as investment, rather than a standard car which is expected to depreciate rapidly, and tend to have stricter credit requirements to qualify for a loan.
What are the credit requirements?
To qualify for a classic car loan, you’ll generally need a good credit score. Some of the factors in maintaining a good credit score are never having defaulted on any previous loans, and having a generally good repayment history on previous loan facilities. A good credit score is usually around 600 or higher, and may go up to either 1,000 or 1,200 depending on the credit reporting agency. If you don’t have a good credit score, you may find it difficult to find a lender willing to finance your classic car purchase without charging you higher interest rates and fees.
Additionally, you’ll need to prove that you have the ability to repay the loan according to the agreed repayment schedule. This means being able to demonstrate that you have a job or other regular income, and don’t spend beyond your means. The lender will request evidence of your income, usually through some recent payslips, as well as an analysis of your current expenses, assets and liabilities.
Of course, the standard credit requirements for any loan or line of credit will also apply – you’ll need to be an Australian citizen or permanent resident, over the age of 18. Because a classic car is a big investment, lenders tend to prefer a strong borrowing profile, so having a stable, long term job being a homeowner will help to increase your eligibility for lower interest rates. A deposit can also be very helpful when taking out a classic car loan.
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How do I qualify for classic car financing?
Be asset-backed
Applicants applying to finance old cars have to have a strong borrower profile and part of this is owning property. Applicants who own their home outright, have an existing investment portfolio or are currently paying off a home loan are the most likely to experience approval and a lower interest rate.
Have a strong credit score
Another significant factor that will affect your chances of approval is your credit rating. Lenders give this number a significant amount of weight when considering applications, as it serves as a representation of how you’ve fared servicing debt in the past.
There are several ways you can look to maximise your rating prior to applying for classic car financing. Lowering the limits on your credit cards and getting rid of any cards you don’t need or use is one way to do so, while paying off outstanding debt is another.
Make a deposit
Because car loans are assessed based on risk, borrowers can do their best to mitigate it by offering a deposit as part of the deal. Not only does this decrease the money your lender will have to transfer to you, thus lowering the potential for losses on their part, but it shows them that you’re serious about ensuring the loan is fully serviced by its conclusion.
A welcome by-product of this is that paying a portion of your loan upfront rather than with the rest of your repayments decreases the amount you’ll need to pay interest on. For instance, putting a $10,000 deposit up on a $50,000 loan means that you’ll only need to pay interest on $40,000.
Show verifiable past borrowing
In addition to displaying a good credit score, showing your lender that you’ve successfully repaid a similar loan in the past will go a long way towards improving your approval chances. Income is only one part of the battle: demonstrating the discipline to make repayments on time each month is just as important. Lenders want to be confident that you have this discipline, so any past car loans will come in handy for your classic car finance.
Have a stable job and income
Finally, you’ll have to be earning enough to manage your repayments. For this type of finance, lenders prioritise borrowers who have job and income stability, such as full-time workers past probation and comfortably permanent. Risk factors in again here: there’s a much higher chance of a casual worker’s employment being terminated or their work hours drying up than someone with full-time permanency.
