Financing a Classic Car

Aston Martin DB5

Financing can be an alternative way to acquire your dream car, as opposed to using your savings to pay for it outright. Opting for a tailored finance approach with a structure of affordable repayments will allow you to buy the car you’ve always wanted.

Finding a suitable finance option for your dream classic car can be a complex process, especially if you’re not supported with the right expertise and knowledge. When choosing a lender for your car finance, it’s important to look for someone with both expertise in the financial industry and the knowledge and enthusiasm for the car industry. As vehicles differ, so do the lenders and lending options, so it’s important to do thorough research around which type of finance is right for you before you decide.

The types of car finance will vary depending on the car value, the lender and the model you’re wanting to finance. It’s therefore important to familiarise yourself with the different options available before deciding on the finance choice for you.

The Classic Car Finance Team at Cambridge & Counties Bank are financial experts with a true passion for cars; sharing your desire and excitement for purchasing your dream classic car. Here they share some of their knowledge as global markets shift. We sat down with Head of Classic, Vintage and Sports Cars, Neil Fender, to discuss one of the options, equity release, and what the future holds for the classic car industry.

“Following the COVID-19 outbreak, we are not expecting to be overrun with new customers purchasing their first classic car, instead we expect to be providing refinance options to allow people to release cash that they may not have been able to release from things like shares or property, as expected.”

1933 Alfa_Romeo 8C - Classic car finance

“It is likely the pandemic may change the way people look at travel and life in general for years to come, and with this we predict a shift in financial focus away from classic cars for a while. With the inevitable strain on the economy, some owners may have to sell or finance their existing cars to make ends meet. Despite this, the classic car market is a resilient and mature thing, and whatever the state of the market, rare classic cars will always be desirable.”

“For automotive enthusiasts, a car is not just a mode of transport but a way of life. Although buyers will be conscious of their money, we predict the classic car will weather the storm. As we come out the other end of what will be a peculiar summer, I envisage every classic, race and sportscar enthusiast will be desperate to jump in their dream car, making the UK roads very busy. Let’s hope this is sooner rather than later.”

How to finance it

Much like the various makes and models of cars, there is also a plethora of different finance options to choose from.

For those wanting to obtain a car from a private vendor or dealer; ‘Purchase Finance’ can be a brilliant option as it consists of tailored loans that can be structured in accordance with the deal. In regard to classic cars, purchase finance is always agreed prior to the purchase of the car. The finance provider should be able to offer an efficient turnaround as this can allow for the purchase of time-sensitive vehicles.

‘Equity Release’ is a favourable finance option if you’re looking to reap benefits of previous investments. For those lucky enough to have a collection of cars and are wanting to add another to this, equity release is a good option to do just that. As classic cars can increase in value over time, this option allows you to release funds from a current vehicle to put towards your next car, or simply release them without having to sell up.

Alternatively, ‘Auction Finance’ is another great option for financing a classic car. For many motoring enthusiasts, auctions can be the ideal place to find the dream car, with various older and classic models for sale. However, bidding at a car auction can be stressful, so it’s important to secure your finance first, allowing you to comfortably and confidently bid on your next classic car without that worry.

Eagle Jaguar - Classic car finance

While UK roads are currently deserted and the economy is uncertain, one thing for sure is classic car enthusiasts will look forward to the moment they can go for their next spin.
Those with a classic car collection or an interest in the industry are unlikely to lose this enthusiasm and will keep the industry thriving. In addition to this, as a new, younger generation of buyers enter the world of classic cars, we may see an increase in demand for ‘modern classics’ alongside old favourites. With the current economic climate, classic car finance may make for a favourable option.

There are several things that define a classic car, but in order to get the most suitable finance deal tailored to you, cars can be categorised into one of the following subgroups.

Types of classic cars

There are several things that define a classic car, but in order to get the most suitable finance deal tailored to you, cars can be categorised into one of the following subgroups.

Modern classic

Modern classics tend to be aged between 10-25 years old. Having a tailored finance plan for purchasing a modern classic is still as essential as when purchasing a classic car.

2017-maserati-granturismo-sport - Classic car finance

Classic car

Often classed as cars of more than 20 years old and bought as collectibles, classic cars cover a broad spectrum of makes and models. The definition of a classic car may differ depending on who you ask as there are so many different factors which contribute. You should seek a personal and bespoke finance agreement, fitting to the model you’re looking to purchase.

Mercedes-Benz 300SL Gullwing - Classic car finance

Vintage car

Sometimes confused with classic cars, a vintage car is actually an entirely different thing. Vintage cars are those typically dated from 1919 to 1930 and enthusiasts with extensive knowledge of these models are hard to come by, so finding an expert in financing for these cars can be difficult. It is therefore crucial to work with a finance expert who has a passion and understanding for a range of classic and vintage vehicles.

Bugatti 59

Racing car

Financing a racing car can often be hard due to the vehicles being deemed a high-risk asset, which is especially true for classic and vintage racing cars. In order to ensure your transaction is dealt with efficiently, opt for a lender who offers race car finance.

Austin Healey 3000

For further details on classic car finance, visit:

You must be logged in to post a comment