Overview
Financing a classic car differs significantly from financing a modern vehicle. Values can be volatile, condition is paramount, and specialist knowledge is essential when it comes to underwriting.
Whether you're acquiring a concours-ready Ferrari 250 or a project E-Type Jaguar, understanding how classic car finance works will help you secure the right deal while protecting your investment.
Key Differences from Modern Car Finance
Modern Cars
- Standard valuations via Glass's/CAP
- Predictable depreciation curves
- Market value insurance standard
- Mileage-based residuals
Classic Cars
- Specialist valuations required
- Values can appreciate over time
- Agreed value insurance essential
- Condition-based valuations
Valuation: The Foundation of Classic Car Finance
Accurate valuation is critical for classic car finance. Unlike modern vehicles, there's no standardized pricing guide. Lenders rely on specialist valuations that consider provenance, condition, originality, and market trends.
Valuation Factors
- • Provenance – Documented history and ownership
- • Originality – Matching numbers, original parts
- • Condition – Concours, excellent, good, project
- • Rarity – Production numbers, special editions
- • Market trends – Current demand and auction results
Finance Options for Classic Cars
Hire Purchase (HP)
Often preferred for classics as there's no need to predict residual values. You pay off the full amount and own the car outright at the end.
Lease Purchase (LP)
Lower monthly payments with a balloon at the end. Works well if you're confident the car will hold or increase its value.
Equity Release / Refinance
Already own a classic? Release equity from your collection to fund new acquisitions or other purposes while keeping your cars.
Special Considerations
Agreed Value Insurance
Essential for classics. In the event of a total loss, you receive the agreed value rather than market value at the time of claim.
Maintenance Reserves
Factor in maintenance costs when calculating affordability. Specialists and parts for classics can be expensive.
Storage Requirements
Lenders may require proof of secure storage. Climate-controlled facilities are preferred for valuable classics.
Provenance Verification
Lenders will verify authenticity and ownership history. Missing documentation can affect finance availability.
Next Steps
Classic car finance is bespoke by nature. Every car and every buyer is different. Speak to our specialists to discuss your requirements and get a personalized quote.