You find the car. A genuine one, the right colour combination, matching numbers, with a folder of history going back decades. Then you ring a lender, mention the build year, and the conversation ends before it starts. Most mainstream car loans are written for vehicles that will be under twelve or fifteen years old when the loan finishes, and a 1971 anything fails that test on the first line of the policy.
Short answer: Classic cars fall outside standard car loan age limits, so finance usually comes from a specialist lender who will accept the vehicle as security based on a valuation, or from an unsecured personal loan where the car is not used as collateral at all. Deposits of twenty per cent or more are common on the secured route.
Why do standard car loans not work for classic vehicles?
Mainstream lenders price a car loan on the assumption the asset depreciates predictably and can be resold quickly through established channels. Classic cars break both assumptions. Values can rise, fall or sit flat depending on model and provenance, and the buyer pool is far smaller than for a five year old hatchback.
The practical expression of that discomfort is the age limit. A typical secured car loan requires the vehicle to be no more than twelve to fifteen years old at the end of the term. Anything genuinely collectible sits decades outside that. Some lenders will also decline on the basis that parts availability and repair costs make the asset harder to keep roadworthy.
None of this means classic car finance is unavailable. It means the lenders who do it are a different, smaller group, and they assess the car quite differently.
What counts as a classic car for finance purposes?
There is no single legal definition in Australia, and lenders set their own. Broadly, vehicles over twenty five or thirty years old are treated as classics, with veteran and vintage categories covering the earliest cars. Some lenders also recognise modern classics: limited production models under twenty five years old with demonstrable collector value.
The label matters less than the evidence. What a specialist lender actually wants is proof of value: an independent valuation, an agreed value insurance quote, auction results for comparable cars, or a marque specialist’s assessment. A car with a documented history and a recognised model designation is easier to lend against than a heavily modified example of the same base vehicle, even where the modified car cost more to build.
Registration status matters too. A car on full registration is straightforward. A car on a state historic or club permit scheme has restricted use conditions that some lenders and insurers treat differently.
What finance options are available for a classic car?
Four routes cover most classic purchases: specialist secured lending against the vehicle, an unsecured personal loan, releasing equity from property, or a business facility where the vehicle is genuinely a business asset. Each has a different cost, security position and approval process.
| Option | What secures it | Generally suits | Watch for |
|---|---|---|---|
| Specialist classic car loan | The vehicle, registered on the PPSR | Documented, valued cars in sound condition | Valuation cost, deposit expectations, narrower lender pool |
| Unsecured personal loan | Nothing | Lower value cars, projects, urgent auction purchases | Higher pricing, shorter terms, tighter loan size limits |
| Property equity release or home loan increase | Your home | Buyers with available equity and a long horizon | Your home is at risk; a consumer credit decision to discuss with your mortgage adviser |
| Business chattel mortgage | The vehicle | Vehicles genuinely used in a business, such as touring or hire | Private use attracts scrutiny; accountant advice essential |
This comparison is indicative only and does not reflect any particular lender’s policy. Availability, deposit levels and pricing vary considerably. Confirm what applies to your purchase with your lender or broker.
How much deposit will a classic car lender want?
Specialist secured lending on a classic commonly starts at twenty per cent deposit, and can run higher on rarer or higher value vehicles. The deposit protects the lender against valuation uncertainty, since a classic’s market value is far less predictable than a late model production car.
Where the car is exceptional, well documented and independently valued, a lower contribution is sometimes possible. Conversely, a car with gaps in its history, non original components or an incomplete restoration will push the required deposit up, or push the deal toward an unsecured structure entirely.
Buyers who already own other collector vehicles occasionally find lenders willing to consider the broader collection, though this is a specialist conversation rather than a standard product.
Why do valuation and insurance matter so much?
A lender securing a loan against a classic needs an independent view of what the car is worth, because the purchase price alone proves very little in a market where two people bidding against each other set the number. Insurance matters equally, because agreed value cover determines what the lender recovers after a total loss.
Two points are worth getting right before settlement:
- Agreed value, not market value. Market value policies pay what an assessor decides the car was worth at the time of loss, which on an appreciating classic can be well below what you paid. Agreed value fixes the figure in advance.
- The lender’s interest noted. Secured lenders normally require their interest recorded on the policy and a certificate of currency provided before funds are released.
Provenance checks also sit here. A PPSR search confirms no existing finance. For imported vehicles, compliance and import approval documentation needs to be in order, since a car that cannot be registered cannot readily be sold.
Can you finance a classic bought at auction?
Auctions demand preparation. Deposits are usually payable on the fall of the hammer, with the balance due within a short window, often a few business days. Without pre-approval arranged in advance, you are bidding on a car you may not be able to settle, which is a genuinely expensive mistake.
Talk to a broker before the catalogue closes, not after you win. A conditional approval to a set limit lets you bid with a firm ceiling and gives the lender time to run its checks against the specific lot. Be aware that buyer’s premium, transport, and any dealer or transfer duty are typically excluded from the financed amount, so those need to come from your own funds.
The same discipline applies to restoration projects, which secured lenders are generally reluctant to fund. An unfinished car has no reliable value and cannot be readily sold, so an unsecured facility is usually the realistic path. The reasoning is much the same as we cover in secured versus unsecured caravan loans.
Is classic car finance consumer credit?
Where the vehicle is bought predominantly for personal enjoyment, weekend driving, club events and shows, the loan is generally consumer credit and may be regulated under the National Consumer Credit Protection Act. That is a different framework to the business asset finance discussed elsewhere in this hub.
Consumer credit brings responsible lending obligations, a requirement that the lender assess suitability, and access to external dispute resolution through AFCA. TYG Finance is an AFCA member and an FBAA member, and we work under those obligations on every consumer application. If you intend to use the car commercially, in weddings or touring for example, tell us upfront, because the product and the assessment change.
This article is general information only and is not financial advice. It does not take your objectives, financial situation or needs into account.
A classic purchase usually comes down to timing, and the buyers who miss out are the ones still arranging finance while someone else transfers a deposit. Have a look at our classic vehicle finance page, or tell us what you are chasing and we will work out which lenders will accept it well before the car comes up.
Can I finance a restoration project?
Secured lending against an incomplete car is difficult, because there is no reliable value and no ready resale market. An unsecured personal loan is usually the practical option. Some buyers finance the purchase and fund the restoration separately as work progresses, which keeps the two decisions independent.
Does a classic car loan always need a valuation?
Not always, but specialist secured lenders commonly ask for one, particularly above certain value thresholds or where the model is rare. An agreed value insurance assessment sometimes satisfies the requirement. Valuation costs are generally paid by the buyer and should be factored into your budget.
Can I finance an imported classic?
It is possible, though the lender will want import approval, compliance documentation and evidence the vehicle can be registered in your state. Cars still in transit are usually financed on arrival rather than before shipping. Import duty, GST and transport are typically excluded from the loan amount.
Will club or historic registration affect my finance?
It can. Conditional registration schemes limit how and when the vehicle may be driven, and some lenders and insurers apply different terms as a result. Disclose the registration status during the application so the approval reflects how you actually intend to use the car.
Can my business finance a classic car?
Only where the vehicle is genuinely used for business purposes. A chattel mortgage may be available in those circumstances, but private use of a business owned collector vehicle attracts scrutiny, including potential fringe benefits tax implications. This is a question for your accountant before you apply.