If you’re a classic car enthusiast, you likely appreciate the design and historical significance of an antique set of wheels. They not only look cool, but they can be a collector’s item that conjures memories of another era.
Classic cars can also be expensive. And unlike buying a new car, they are potentially a good investment since they can actually appreciate in value. Learn more on financing classic cars, including how much classic cars cost, and what types of loans are available for classic cars.
Key Points
• Classic car loans are specialized, with terms and rates based on the car’s condition, rarity, and the borrower’s credit score.
• Credit scores can significantly impact loan terms, with higher scores leading to more favorable rates and terms.
• Refinancing an existing classic car loan can reduce interest rates and monthly payments, potentially saving money.
• Leasing a classic car offers short-term access without ownership but usually includes mileage limits and return requirements.
• Personal loans provide flexible funding for classic car purchases but may be more expensive than specialized loans.
What Is a Classic Car?
There’s more than one definition of a classic car. The Classic Car Club of America defines a full classic as “a ‘fine’ or ‘distinctive’ automobile and American or foreign built, produced only between 1915 and 1948.” As far as definitions go, that one’s pretty narrow. Other definitions peg a classic car as any vehicle manufactured in 2000 or earlier, and they make distinctions between antique cars built in 1975 or earlier and vintage cars manufactured between 1919 and 1930.
Classic cars typically have been repaired and maintained in accordance with the manufacturer’s original design specifications and should not have been altered.
How Much Does a Classic Car Cost?
The price of a classic car will depend on the car’s make and model, what kind of condition it’s in, and how rare it is. Some might cost a few thousand dollars, especially if they aren’t in top condition, while particularly sought after and rare models can easily fetch millions of dollars.
It’s hard to say for sure which was the most expensive car ever sold, since transactions are often made privately. For example, an American businessman is thought to have bought a Ferrari 250 GTO for $50-plus million. Classic car auctions provide the best verifiable public record of classic car prices.
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How Can I Get a Classic Car Loan?
Most lenders don’t specialize in the collectors car market. For example, they may have little expertise in how to value a classic car. As a result, traditional forms of automobile financing may not apply to a classic vehicle. You may need to look into classic car loans, which are now offered by various specialty lenders. Research these lenders online, or ask other people in the collector car community if they financed their purchases and find out who they used.
Once you’ve identified a lender, you’ll need to go through their loan application process.
Classic Car Financing Credit Score
As with traditional auto loans, the loan amount and interest rate offered through a classic car loan will vary depending on your financial situation. Lenders will review your credit score to help them get an idea of your creditworthiness and how likely you are to pay back your loan on time.
The higher your score, the better the terms and interest rates you’ll likely be offered. If you have a low score, lenders will worry you are at greater risk of defaulting on your loan. To offset some of this risk, your lender will likely offer you a loan with a higher interest rate. Generally speaking, classic car financing with bad credit is a challenge.
Credit score requirements will vary by lender, but favorable classic car financing rates may require a credit score of 660 or higher.
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Classic Car Financing Rates and Terms
Though terms and interest rates on classic car loans will vary depending on your financial situation. Only people with the best credit scores will qualify for the lowest rates in financing a classic car.
It may be useful to compare classic car interest rates to the average interest rate for a used car, which was 11.87% in early 2025.
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Classic Car Financing Options and Alternatives
A classic car loan is not your only way to get yourself behind the wheel of a vintage automobile. Here’s a look at a few of your other options.
Paying Cash
Buying a classic car outright in cash is the cheapest way to own a classic car. Of course, that requires that you have the cash on hand and don’t need to dip into your emergency savings or retirement fund. Buying in cash means you’ll avoid fees and closing costs on a loan, and you won’t pay any interest, which could ultimately save you thousands of dollars.
Personal Loan
You may also be able to take out a personal loan for a classic car. When you take out a personal loan, you receive a lump sum from your lender anywhere from a few thousand dollars upwards of $100,000, which you’ll pay back in monthly installments with interest. Once you receive the loan, you can use the funds to purchase your classic car.
Loan amount, terms, and interest rates will again depend on your credit history and financial situation. Those with better credit scores will be offered the lowest interest rates. Carefully compare rates between classic car loans and personal loans.
Leasing a Classic Car
If you’re not ready to commit to purchasing a classic car, consider leasing one, whether with a short-term car lease or a long-term one. In return for some upfront costs and a series of monthly payments, leasing allows you to get behind the wheel of a classic car for a relatively short period of time.
You may be subject to mileage restrictions when you lease, as mileage is one of the factors that affects the value of the car. At the end of the lease period, you’ll return the car. And if you so choose, you can swap it out and give a different vehicle a try.
Refinance Your Classic Car
If at any point your classic car loan becomes unmanageable or you’re looking to save money, you may consider refinancing your car loan. When you refinance, you pay off your old loan with a new one, hopefully with better terms or a better interest rate.
When is the best time to refinance a car? You may consider refinancing when interest rates drop or when your financial situation improves. For example, if you’ve built your credit score, you may qualify for a new loan with a lower interest rate.
What are the benefits of an auto loan refinance? A lower interest rate can save you money over the life of the loan, while a longer term may lower your monthly payments. Because you’re paying interest for longer, however, a longer term may be more costly in the long run.
Beware that there are costs of refinancing an auto loan. Be sure you understand any extra upfront fees or closing costs that might reduce the amount you save by securing a lower interest rate.
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The Takeaway
Classic cars can be a joy to own, thanks to their time-honored design and collectibility. Classic car loans are one of the best ways to finance the purchase of a vintage automobile. However, you may also want to compare terms and interest rates to a personal loan to see if it is less expensive. Once you lock in a loan, you aren’t necessarily stuck with it forever. Down the road, you can look into refinancing to see if you could save money.
If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.
FAQ
Is it smart to finance a classic car?
Financing a classic car might be an option if you don’t have the cash on hand to purchase it, or if that cash is better put to use in other ways. For example, if you are able to invest it at a higher rate of return than the interest rate on your loan, it may be smart to finance your vehicle. That said, be careful to only finance a classic car if you can truly afford to do so and can make monthly payments on time.
What are classic car financing terms?
They vary widely. A classic car loan is almost always different from a standard auto loan. With many of them, a sizable cash down payment will help you get favorable interest and terms.
What classic car financing options are there?
You can finance a classic car with a classic car loan, or you may want to consider a personal loan, which offers a borrower a lump sum of cash with no limitations on how that money is spent.
Photo credit: iStock/svetikd
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