Classic Car Loans: How to Finance a Classic Car in Canada

Classic cars are one of the few vehicle types that can appreciate in value. Just like art or fine wine, the value can go up instead of (or as well as) down. That makes classic cars fertile ground for investment. If you want in on the game, can you get a classic car loan?

 

Yes, you can! While we don't provide auto loans for our classic and vintage cars, there are plenty of lenders out there that do!

 

Classic car loans work slightly differently than standard car loans though.

 

Classic Car Loans

The vast majority of investors are going to need a car loan to finance their purchase. Classic car values are currently on a high so you’ll have to shop carefully and choose your classic with an eye on the future to be able to make any money.

 

Not all lenders will offer finance for classic cars. Some will have an upper age limit for the car that a classic may fall outside of. There are specialist lenders willing to loan on a classic though.

 

As long as you have a good credit score and a significant down payment, you should be fine.

 

 

Different lenders also categorize classics in different ways. Some class a classic as anything from the 20^th century up to the 1990s while others have a stricter definition of what a classic is.

 

Part of the challenge of finding a classic car loan is finding a lender that includes your car within its definition!

 

How to Finance a Classic Car Loan

While the product itself may be a little different than a standard car loan, the process of getting one is much the same.

 

Check Your Credit Score

You’ll need a good credit score to qualify for a specialist loan like this. You may also need a good score for the amounts you’ll need too. Much will depend on the type of classic you’re after.

 

The higher the credit score, the lower the interest rate so it’s worth improving your credit score if you can.

 

Prepare Your Down Payment

Most classic car loans in will require a minimum of 10-20% as a down payment while other lenders will prefer more. The more you put down, the higher the chance of being accepted.

 

The down payment also reduces the amount you’ll have to borrow, which can mean the difference between being accepted for the loan and not.

 

While you can put down as much as you like, as long as you meet the minimum, the more the better!

 

Shop Around for Your Classic Car Loan

Not all lenders will lend for a classic. There are a number of them out there willing to help you invest. Expect a lot of scrutiny around affordability and the viability of the car.

 

The older the car, the more likely a lender would require an inspection or mechanical report. Not all lenders require this so prepare for an inspection but don’t pay for one until you’re ready to do so.

 

Thanks for reading!