How To Finance a Classic Car

We know the feeling. You’re cruising down the motorway when a pristine 60s Ford Mustang glides past. “Wouldn’t that be nice?” you think. But the truth is, that dream could be closer than you realise.

More and more people are choosing classic car finance as a smart way to purchase these iconic vehicles. If you’re looking at how to get finance for a classic car, this guide explains what qualifies as a classic, how you can finance one through STAR Asset Finance, and whether it’s the right option for you.

Nothing beats the feeling of driving away in your dream car, and helping make that possible is what we do best. Continue reading for our guide on how to pick up the keys to your dream car.

What Is a Classic Car?

To put it simply, a classic car is an older vehicle valued for its historical significance, design, and performance. Typically, it’s over 25 years old and considered a collectable asset. But that doesn’t mean all old cars are considered classics… To be considered one, the car must be in good condition, be part of a limited production, or have had a cultural impact. People in the classic car scene describe them as more than an old car, it’s a piece of automotive art that stands out from the everyday cars on the road – not an old Ford Focus from the 90s!

Where Can I buy a Classic Car?

You can buy a classic car from several places, and each has its own pros and cons.

When buying from a dealership, it’s more likely that the car will come with service history, as well as a warranty. It’s good to buy from dealerships, as if there’s anything wrong with the car, your purchase will be protected.

Another way to purchase a car is through a private seller. Generally speaking, it’s riskier to buy this way; however, you might find that the cost of the car is cheaper than if you were to buy from a dealership. But don’t forget to ask the seller about service history and other important details.

The other way to purchase a classic car is at an auction. This is a great way to get your hands on the car you really want; however, it does come with a set of risks. At auctions, it’s a case of ‘what you see is what you get’, so it’s important to know exactly what your budget is and what to look out for.

How Car Finance Works

At STAR Asset Finance, we keep the process simple. Once you’ve chosen your classic car, you apply for finance with us. If approved, you can decide how much deposit you’d like to put down and choose monthly repayments that suit your budget.

We’ll then request an invoice from the dealer and confirm the payment. Once the paperwork is signed, we pay the dealer directly – all that’s left for you to do is collect the keys and enjoy the drive home.

Why People Use Car Finance

Car finance is a great way to purchase a vehicle more easily. It gives you flexible options on how much of a deposit you want to put down, and gives you different monthly repayment options, depending on your affordability. It’s a great way for you to access the vehicle of your dreams and drive away in your dream car.

How To Get a Classic Car Loan

There are several ways to finance a classic car, from standard bank loans to dealership finance arrangements. However, these options aren’t always designed with classic cars in mind. That’s why many buyers choose to work with a specialist classic car finance broker. We focus exclusively on classic and collectable vehicles, offering tailored loan solutions that take into account a car’s true value, rarity, and long-term appeal.

Can I get a Car Loan?

If you’re asking, “Can I finance a classic car?” the answer is frequently yes. We consider both affordability and the suitability of the vehicle, offering a flexible and tailored approach to classic car finance. Speak to our team today and receive a quick decision.

What To Consider Before Choosing a Classic Car

When buying a classic car, there are a couple of things that you need to be aware of to make sure you’re getting the best deal. We’ve listed them below:

Firstly, when looking at the car’s condition, if it’s not in the best state, have you factored in any restoration costs? There can also be a lot of maintenance involved with classic cars, so it’s important that the car comes with full history and information on the work that’s been done, so that you understand what work will need to be done.

Although its less important, mileage is another thing to consider. Expect to see more of a premium in lower mileage cars, and if you intend on driving the car regularly, how this will affect its value.

It’s worth thinking about what you might want to do at the end of the agreement, whether that’s keeping the car, selling it, or refinancing. Considering this early can help ensure the finance structure supports your longer-term plans.

What Kind of Insurance You Will Need

When it comes to insuring a classic car, you’ll need a specialist policy from an insurer. These policies usually have certain requirements, such as limiting annual mileage, secure storage (such as a garage), and the car needing to be in good condition. The car will need to be insured under pleasure usage, and not for commuting or business.

Choosing the Right Classic Car Finance Partner

Purchasing classic cars couldn’t be easier with our Classic Car Finance option. Whether you’re buying at auction or through a dealership, our quick and easy application can be approved within minutes. We’re an experienced finance partner in this sector, offering the best solutions and any guidance you might need. Learn more about our tailored classic car finance solutions.