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Compare classic car loans

Learn how to pay for that classic car you've had your eye on.

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Buying a classic car isn’t easy — lots of people are looking for the perfect vintage ride. Because classic cars are a hobby and aren’t usually relied upon as a primary mode of transportation, many collectors pay cash for their vintage vehicles. If you don’t have the money upfront, you might miss out on getting your dream car. In that case, getting a personal loan or a classic car loan could save the day.

Popular classic car loan option in Canada

LenderLoan amountsRates
CarsFast Car LoansFrom $500 to $75,0004.90% to 29.90%

Can you finance a classic car?

Yes, but your loan options will be more limited. Some typical car loan providers won’t finance a car that’s older than a certain number of years, like 10 years old, while others may have less specific criteria or even specialize in financing classic cars. Many banks offer secured financing options too, using large car collections (valued at over $1 million) as collateral.

How to get a classic car loan in Canada

Classic cars are collectible, which raises their value. Like all car loans, your eligibility depends on your credit and finances, with most lenders expecting a down payment of around 20%. The more you can spend upfront, the greater your chance of scoring a lower interest rate. At the end of your loan term, you own the car and are able to sell it or keep it as a valuable asset. This gives you the freedom to do whatever you like with the vehicle, from painting it to customizing its features.

What is unique about classic car loans?

Classic car loans share many of the features of standard car loans, but they do have some characteristics that set them apart.

  • Stricter credit requirements. The larger the purchase, the higher your credit score will need to be in order to secure a loan. Many classic car loan providers only accept customers with a good or excellent credit score. Good credit lowers your risk, usually resulting in lower interest rates.
  • No vehicle age restrictions. It’s common for used car loan providers to restrict financing to vehicles that are no more than five years old. Classic cars are far older but are high-value purchases, so the age restriction is more relaxed. Back in 2014, Zuto, an auto loan company from the UK, reported financing a 1921 Talbot Darracq!
  • Restrictions on vehicles. Classic car loans can often be used to buy antique, muscle or other exotic cars, while everyday car loans are usually limited to modern vehicles.
  • Expert valuations. There isn’t one standard set of guidelines for deciding which cars are classic and which are simply old. Classic car loan providers will often have experts who can establish the car’s value. Many auto insurers consider classic cars as being built before 1980 or that are at least 25 years old (with some exceptions). But because standards vary among loan providers, be sure to check with your lender to see if the car you’ve got your eye on makes the cut.

Many borrowers turn to personal loans to for classic car financing since the requirements tend to be easier to meet.

Compare a range of car financing options in Canada

Name Product Min. Loan Amount Interest Rate Loan Term Min. Credit Score Requirements
CarsFast Car Loans
$500
4.90% to 29.90%
12 months - 8 years
300
Gross income of $1,800/month, 3+ months employed
Browse thousands of vehicles from dealers across Canada and get matched with financing that meets your needs. Apply online to purchase a new or used vehicle and get the vehicle delivered to your door.
Car Loans Canada
$7,500
3.99% to 29.95%
12-84 months
300
3+ months employed, min. income of $2,000/month
Search thousands of vehicles online, including $0 down options, from dealers across the country and get matched with affordable financing options. Auto loans are also available to those with bad credit, consumer proposals and bankruptcies to help rebuild credit.
Loans Canada Car Loans
$500
0% to 29.99%
3-96 months
300
Employed for at least 3 months, min. income of $1,800/month
Get access to financing from multiple lenders across Canada through a single application with Loans Canada. Bad credit, CERB and EI borrowers are considered.
Carloans411 Car Loans
$500
1.90% to 19.99%
Up to 72 months
300
Employed for 3+ months, min. income of $1,600/month
Get connected with suitable lenders through CarLoans411. Finance your next car, van or truck with loans available in amounts from $500 to $50,000. Check eligibility for this loan through LoanConnect.
LoanConnect Car Loans
$500
10.00% to 46.96%
6-60 months
550
No min. income requirement
Get access to 25+ lenders through LoanConnect's brokerage. Receive pre-approval in as fast as 60 seconds and get your funds in as little as 24 hours.
Fairstone Secured Personal Loan
$5,000
19.99% to 23.99%
3-10 years
560
Have an established credit history and own your home
Fairstone offers secured personal loans up to $35,000.
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Name Product Interest Rate Max. Loan Amount Loan Term Fees Min. Credit Score Link
LoanConnect Personal Loan
Secured from 1.90%, Unsecured from 10.00%-46.96%
$50,000
3-60 months
No application or origination fees
N/A
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More Info
LoanConnect is an online broker that matches borrowers to lenders offering loans in amounts from $500 to $50,000. Get approved for multiple loan offers from different lenders in as little as 60 seconds with any credit score.
Loans Canada Personal Loan
Secured from 2.00%, Unsecured from 8.00% to 46.96%
$50,000
3-60 months
No application or origination fees
300
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More Info
Loans Canada connects borrowers to lenders offering both secured and unsecured personal loans in amounts from $300 to $50,000. Submit one application to get rates from multiple lenders across Canada.
Fairstone Personal Loan (Unsecured)
26.99% - 39.99%
$20,000
6 months - 5 years
None
560
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More Info
Fairstone offers unsecured personal loans up to $20,000
Mogo Personal Loan
9.90% - 47.42%
$35,000
9 months - 5 years
NSF fee - $20 - $50
540
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More Info
Mogo offers loans up to $35,000 on flexible terms.
Magical Credit Personal Loan
19.99% - 46.80%
$20,000
6 months - 5 years
A single administration fee of $194 for $1,500 loans and up
300
Go to site
More Info
Magical Credit offers unsecured personal loans in amounts up to $20,000.
Cash Money Installment Loan
46.93%
$10,000
6 months - 5 years
Vary across provinces/territories
560
Go to site
More Info
Cash Money offers installment loans up to $10,000 for AB, MB and NB residents.
LendDirect Personal Loan
19.99% - 46.93%
$15,000
No end dates
None
560
Go to site
More Info
Borrow up to $15,000, based on your income and credit history, with a personal line of credit from LendDirect.
LendingMate Personal Loan
43% (British Columbia and Ontario) and 34.90% (Quebec)
$10,000
1-5 years
None
300
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More Info
LendingMate offers loans to Canadians with poor credit with no credit checks. Co-signer required for application.
Fairstone Personal Loan (Secured)
19.99% - 23.99%
$35,000
3-10 years
Varies by province
560
Go to site
More Info
Fairstone offers secured personal loans up to $35,000.
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Representative example: Omar buys a Corvette

Omar, a B.C. resident and classic car collector, visits a local car show and meets a private seller offering a 1960 Ermine White Chevrolet Corvette in great condition with all original parts. The asking price is $70,000.00, which Omar agrees to pay, offering a 20% deposit ($14,000.00) to secure the sale while he searches for a loan to cover the rest.

Because of his strong credit history and good income, it doesn’t take long for Omar to find a reputable lender specializing in classic car loans who’s willing to lend him the money to pay the amount owing on the car plus 12% PST ($56,000.00 + $6,720.00). Omar also pays approximately $50.00 to register his vehicle with the Insurance Corporation of British Columbia (ICBC) – this includes the cost of a license plate, insurance decal and vehicle permit as well as a registration fee.

Cost of new vehicle$56,000.00 ($70,000.00 less $14,000.00 deposit)
Loan typeAuto loan (term loan)
Loan amount$64,400.00
Interest rate (APR)6.90%
Loan term7 years
Additional fees4.00% origination fee ($2,576.00)
$0.00 application fee (waived by dealership)
Payment $968.82 monthly or $446.61 biweekly
Total loan cost$81,380.88 with monthly payments or $81,283.02 with biweekly payments

*The information in this example, including rates, fees and terms, is provided as a representative transaction. The actual cost of the product may vary depending on the retailer, the product specs and other factors.

How to value a classic car

In order to accommodate the wide variety in car values, classic car loans can be flexible in the amounts that are given. Depending on its condition, rarity, originality, collector appeal and many other factors, a classic car could cost as much as a few hundred thousand dollars.

There are guides to valuation, but often it requires an expert with some in-depth knowledge of the market. A specialized lender may have a classic car specialist on hand, or you can contact one yourself and have the car appraised before applying for a loan.

A classic orange Dodge Charger parked in a field Image: Pixabay

A classic Dodge Charger (year unknown). The Charger was originally released in 1966 and sold for approx. $3,500 USD ($4,700 CAD). Today, these models can sell for approx. $55,000 USD ($74,000 CAD) if kept in perfect, showroom condition. For comparison, the 2019 Charger is listed as $29,220 USD ($37,095 CAD).

What to look for in a classic car loan

There’s more to a loan than just the interest rate. You should also look at:

  • Fees. Fees add to the total cost of your loan. Many lenders charge multiple fees, but there are some that are negotiable or vary from lender to lender. Find a lender that has minimal fees so you can walk away with a better deal.
  • Repayment terms. Some loans last 24 months while others can stretch as long as 144 months. The longer your loan term, the lower your monthly payment but the more you’ll end up paying in interest in the end. Weigh the pros and cons of various repayment terms when comparing your loan options.
  • Flexibility. Can you make additional repayments? Are there any early repayment fees? The flexibility of a loan can make a difference in your ultimate choice of lender.
  • Security. Lenders often require you to use your car as the security for your loan, and a classic car loan is no different. By using your car as collateral, you’ll have access to lower interest rates, but you do risk losing the car entirely should you default.

Classic car insurance in Canada

Many car loans agreements will, as a condition of the loan, require you to take out comprehensive coverage. And the value of your classic car may increase the premium you pay. Classic car insurance policies can include benefits such as lay-up periods to reduce premiums, which may be more suitable if you’re a collector or looking to invest in the classic car as an appreciating asset (meaning, an asset that goes up in value over time).

Classic car insurers are very careful with who and what they agree to insure. Your insurance provider may only allow classic cars to be driven during certain months or on certain roads due to the difficulty in replacing parts that have been worn down or damaged. There may also be restrictions on your eligibility for coverage if you haven’t maintained a completely clean driving record for a number of years.

High-value classic cars

A large variety of classic cars on the market have buyers lining up to make a purchase, but here are a few that auto enthusiasts put at the top.

  • Chevrolet Camaro
  • Dodge Charger
  • Ford Torino
  • Plymouth Roadrunner
  • Chevrolet Chevelle

These classics may cost you more, but could be worth the investment if you love driving or working on classic cars that can last you for years to come.

What are my other calssic car loan options?

Some lenders have a specific product for financing the purchase of a classic car, but these aren’t your only options. If you aren’t eligible for a classic car loan, or the terms aren’t right for you, you might also consider:

  • A personal loan. An unsecured personal loan might carry higher interest rates than other alternatives and may not be enough to finance your full purchase, but combined with your savings, you could be able to purchase your dream car sooner than you think.
  • Home equity loan. Some classic car enthusiasts choose to take out a home equity loan to finance their dream car. If your house has enough equity, a home equity loan could cover the cost, but if you default, you risk losing your home.
  • A standard car loan. Standard car loans aren’t usually available for classic cars, but you might be able to find a few local lenders willing to offer you financing if they understand the value of your purchase and are willing to use the vintage car to secure the loan.

Bottom line

A classic car is an investment. Many appreciate in value when maintained f and stored properly, and each one is a unique collector’s item. Review your finances before borrowing a loan for a classic car. Review the costs and features to make sure it suits your needs and budget, and don’t hesitate to speak with an accountant or classic car expert before finalizing your purchase.

Frequently asked questions about classic car loans

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