What Are Classic Car Loans?
A classic car loan is a special type of auto loan used to buy or restore vintage or collectible cars, typically 25 years or older. Unlike regular car loans, classic car financing is tailored for vehicles that hold or increase in value over time, like a 1957 Chevy Bel Air or a 1969 Dodge Charger. Lenders who offer car loans for older vehicles understand that these cars are more than just transportation—they’re investments and passions.
“Classic cars aren’t just vehicles; they’re rolling art. Financing them requires lenders who get their unique value.”
— Tom Reynolds, Classic Car Financing Specialist
How Classic Car Loans Differ
- Value-Based Lending: Lenders base the loan on the car’s appraised value, not just your credit score.
- Longer Terms: Some loans stretch up to 12 years to keep payments affordable.
- Specialized Lenders: Banks, credit unions, and niche lenders offer financing older cars, unlike standard auto lenders.
- Restoration Funding: Some auto loans for older cars cover repair or restoration costs.
Finance classic cars with these loans to make your dream ride a reality, whether you’re buying at an auction or from a private seller.
Why Choose Classic Car Loans?
Classic car financing offers unique benefits for collectors and enthusiasts. Here’s why car loans for older vehicles are a smart choice:
- Affordable Payments: Longer loan terms spread out costs, making financing older cars easier on your wallet.
- Protects Your Savings: Instead of draining your bank account, finance classic cars to keep cash for emergencies or restoration.
- Builds Credit: Paying off auto loans for older cars on time boosts your credit score.
- Covers High Costs: Classic cars can cost $20,000 to $200,000 or more. Loans make them attainable.
| Benefit | Why It Matters | Example |
|---|---|---|
| Low Monthly Payments | Keeps your budget in check. | A $50,000 loan at 5% APR over 10 years is about $550/month. |
| Preserves Cash | Leaves money for repairs or other goals. | Use savings to restore a 1966 Pontiac GTO. |
| Credit Boost | Timely payments improve your score. | Raise your score from 650 to 700 in a year. |
| Access to Dream Cars | Makes expensive classics affordable. | Buy a $75,000 1971 Plymouth Barracuda. |
Key Takeaway
Classic car loans make owning a vintage vehicle affordable and practical, letting you finance classic cars without emptying your savings.
How Do Classic Car Loans Work?
Getting a classic car loan is similar to a regular car loan, but there are a few extra steps because of the car’s unique value. Here’s how car loans for older vehicles work:
1. Find a Lender
Look for banks, credit unions, or specialty lenders that offer financing older cars. Examples include LightStream, JJ Best Banc, and Woodside Credit.
2. Get the Car Appraised
Lenders need to know the car’s value. You may need a professional appraisal to confirm the car’s worth, especially for auto loans for older cars over $50,000.
3. Apply for the Loan
Provide:
- Your credit score and income details
- The car’s make, model, year, and VIN
- Appraisal report (if required)
- Proof of insurance
4. Approval and Funding
Lenders check your credit and the car’s value. If approved, funds are sent to you or the seller, often within 1–7 days.
5. Repay the Loan
Pay monthly over the loan term, which can be 3–12 years for classic car financing. Some lenders allow early payoff with no penalties.
Key Takeaway
Understanding the appraisal and application process is key to securing car loans for older vehicles quickly and affordably.
Benefits of Classic Car Loans
Financing older cars comes with perks that make it easier to own a vintage ride. Here’s a closer look:
- Lower Interest Rates: Classic car loans often have rates as low as 4%–8%, compared to 10%+ for regular used car loans.
- Flexible Terms: Terms up to 12 years keep payments low, ideal for auto loans for older cars.
- Investment Potential: Classic cars often gain value, so finance classic cars to own an appreciating asset.
- Specialized Support: Lenders like JJ Best Banc know classic cars, offering expert advice.
“A good classic car loan lets you enjoy your vintage ride today while its value grows for tomorrow.”
— Lisa Carter, Auto Finance Advisor
Risks of Classic Car Loans
While classic car financing is exciting, there are risks to watch out for:
- High Costs: Some classic cars are pricey, and even low-rate loans can mean big interest over time.
- Maintenance Expenses: Older cars need costly repairs, which can strain your budget alongside loan payments.
- Depreciation Risk: Not all classics gain value. A bad choice could lose money.
- Limited Lenders: Fewer lenders offer car loans for older vehicles, so options may be scarce.
Key Takeaway
Be ready for maintenance costs and choose a high-value car to make financing older cars a smart investment.
How to Find the Best Classic Car Loans
Finding the right classic car loan takes a little homework. Follow these steps to get the best deal on auto loans for older cars:
Step 1: Know Your Budget
- Decide how much you can spend on the car and monthly payments.
- Include costs like insurance, repairs, and storage for financing older cars.
Step 2: Check Your Credit
- A score of 670+ gets the best rates for classic car financing.
- Use free tools like Credit Karma to check your score.
Step 3: Research Lenders
Look for lenders specializing in car loans for older vehicles. Compare:
- Interest Rates: Aim for 4%–8% APR.
- Loan Terms: Longer terms (7–12 years) lower payments.
- Fees: Avoid high origination or prepayment fees.
- Funding Speed: Some lenders fund in 24 hours.
| Lender | APR Range | Loan Amounts | Terms | Best For |
|---|---|---|---|---|
| LightStream | 4.49%–9.99% | $5,000–$100,000 | 2–7 years | Fast funding |
| JJ Best Banc | 5.25%–10.0% | $10,000–$1M | 5–12 years | High-value classics |
| Woodside Credit | 5.0%–9.0% | $10,000–$500,000 | Up to 12 years | Luxury classics |
| Navy Federal Credit Union | 4.85%–8.0% | $5,000–$250,000 | 3–7 years | Military members |
Step 4: Get Prequalified
- Prequalify with 3–5 lenders to see rates without hurting your credit.
- This helps you compare finance classic cars offers.
Step 5: Get the Car Appraised
- Hire a professional appraiser to confirm the car’s value.
- This ensures the lender agrees to auto loans for older cars based on the car’s worth.
Key Takeaway
Shop around, check your credit, and get an appraisal to find the best classic car financing for your dream car.
Top Lenders for Classic Car Loans in 2025
Here are some of the best lenders for car loans for older vehicles in 2025, chosen for their rates, terms, and reputation:
1. LightStream
- Best For: Fast funding.
- Why Choose: Low rates (4.49%+), no fees, and same-day funding for financing older cars.
- Drawback: Requires excellent credit (700+).
2. JJ Best Banc
- Best For: High-value classics.
- Why Choose: Specializes in classic car financing, with loans up to $1M and terms up to 12 years.
- Drawback: Higher minimum loan amount ($10,000).
3. Woodside Credit
- Best For: Luxury classics.
- Why Choose: Competitive rates (5%+) and long terms for finance classic cars like Ferraris or Corvettes.
- Drawback: Focuses on premium vehicles.
4. Navy Federal Credit Union
- Best For: Military members.
- Why Choose: Low rates (4.85%+) and flexible terms for auto loans for older cars.
- Drawback: Membership limited to military and families.
How to Apply for a Classic Car Loan
Applying for a classic car loan is straightforward if you’re prepared. Here’s how to do it:
- Pick Your Car: Choose the classic car you want to buy or restore.
- Get an Appraisal: Have the car valued by a professional for financing older cars.
- Gather Documents:
- ID (driver’s license)
- Proof of income (pay stubs or tax returns)
- Car details (make, model, year, VIN)
- Appraisal report
- Prequalify: Check rates with multiple lenders offering car loans for older vehicles.
- Apply: Submit your application online or in-person.
- Review the Offer: Check the APR, term, and fees before signing.
- Get Funded: Funds go to you or the seller, often within 1–7 days.
Key Takeaway
Prepare documents and get an appraisal to make applying for classic car financing quick and easy.
Tips to Get the Best Classic Car Loan Rates
- Boost Your Credit: Pay bills on time and reduce debt to improve your score.
- Choose a Valuable Car: Cars with strong resale value get better rates for financing older cars.
- Make a Down Payment: Pay 10%–20% upfront to lower the loan amount.
- Compare Lenders: Shop around for the lowest APR on auto loans for older cars.
- Negotiate: Ask lenders to match or beat competitors’ offers for finance classic cars.
Common Uses for Classic Car Loans
Classic car loans are used for more than just buying a car. Here’s how people use them:
| Purpose | Why It’s Popular | Example |
|---|---|---|
| Buying a Classic | Own a dream car like a 1969 Camaro. | $40,000 loan for a restored Mustang. |
| Restoration | Fix up a vintage car to increase its value. | $15,000 to rebuild a 1955 Chevy engine. |
| Auction Purchases | Bid on rare cars at auctions. | $100,000 for a 1963 Corvette at Barrett-Jackson. |
| Collection Expansion | Add to a growing car collection. | $75,000 for a second classic, like a 1970 Charger. |
Avoiding Scams and Bad Lenders
Not all lenders offering car loans for older vehicles are trustworthy. Protect yourself with these tips:
- Check Credentials: Ensure the lender is licensed and has good BBB or Trustpilot reviews.
- Avoid Upfront Fees: Legitimate lenders don’t charge fees before funding classic car financing.
- Read the Fine Print: Look for hidden fees or high rates in auto loans for older cars.
- Use Secure Websites: Apply only on sites with HTTPS and valid SSL certificates.
“A shady lender can turn your classic car dream into a nightmare. Always verify their reputation before signing anything.”
— Mike Johnson, Consumer Finance Expert
Classic Car Loans vs. Other Financing Options
How do classic car loans compare to other ways to pay for a vintage car? Here’s a look:
| Option | Pros | Cons |
|---|---|---|
| Classic Car Loan | Low rates, long terms | Requires good credit, appraisal |
| Personal Loan | No appraisal needed | Higher rates (8%–36%) |
| Home Equity Loan | Very low rates (4%–7%) | Risks your home if you can’t pay |
| Cash Savings | No debt or interest | Drains your savings |
Key Takeaway
Classic car financing offers the best balance of low rates and flexibility for buying vintage cars, compared to riskier or costlier options.*
FAQs About Classic Car Loans
1. Can I get a classic car loan with bad credit?
Yes, but rates may be higher (8%–12%). Lenders like LightStream prefer scores of 670+.
2. How fast can I get classic car financing?
Some lenders, like LightStream, fund in 24 hours, while others take 3–7 days.
3. Do I need an appraisal for car loans for older vehicles?
Yes, most lenders require an appraisal to confirm the car’s value for financing older cars.
4. Can I use auto loans for older cars to restore a car?
Yes, some lenders like JJ Best Banc allow funds for restoration.
Conclusion
Classic car loans make it possible to own a piece of automotive history without draining your savings. By choosing the right lender, getting an appraisal, and comparing car loans for older vehicles, you can drive away in your dream car—whether it’s a 1965 Mustang or a 1970 Charger. With classic car financing, you get low rates, long terms, and the chance to invest in a car that could grow in value.
Final Takeaway
With the right classic car loan, you can finance classic cars affordably, turning your automotive dreams into reality in 2025.
