Top tips to finance a classic car in Perth

Classic car finance is available through specialist lenders, but expect more documentation and different approval criteria than you'd face with a standard vehicle loan.

Most mainstream lenders won't touch a classic car. They want vehicles less than ten years old with predictable depreciation and readily available market data. A 1969 Ford Mustang or a 1985 Porsche 911 doesn't fit that model. Specialist lenders fill that gap, but they price for the additional risk and require more proof that the vehicle is worth what you're claiming.

How lenders value classic cars for finance

You'll need a professional valuation from an accredited appraiser before most lenders will consider your application. That valuation establishes the loan amount and gives the lender confidence that the vehicle exists, runs, and matches the price you're paying. In our experience, buyers often overestimate how much a lender will accept based on an asking price alone. A seller might list a restored HQ Holden at $80,000, but if the valuation comes back at $65,000, that's your ceiling for a secured Car Loan.

The valuation itself costs between $300 and $600 depending on the appraiser and the vehicle's complexity. Some lenders accept valuations from accredited clubs or associations, while others insist on independent assessors. If the car is interstate or regional, you'll need to factor in travel costs for the appraiser or arrange transport to Perth for inspection.

Interest rates and loan terms for classic vehicles

Classic car loans typically sit between 8% and 12%, depending on your credit profile, deposit size, and the vehicle's age and condition. That's higher than a new Car Loan or used Car Loan on a late-model vehicle, where rates can start around 6% to 7%. The difference reflects the lender's risk. A classic car is harder to sell if you default, and its value can swing based on market trends, condition changes, or damage.

Loan terms usually max out at five years, though some lenders will stretch to seven if the vehicle is particularly valuable or well-documented. Shorter terms mean higher monthly repayments, so a $50,000 loan over five years at 10% would cost around $1,060 per month. Over seven years, that drops to roughly $830, but you'll pay more interest over the life of the loan.

Deposit and documentation requirements

Most specialist lenders want at least 20% deposit, though some will go as low as 10% if your credit history is strong and the vehicle is highly desirable. A 20% deposit on a $60,000 classic reduces your loan amount to $48,000 and signals to the lender that you're committed and less likely to default.

Documentation goes beyond what you'd provide for a standard vehicle. Expect to supply the professional valuation, proof of insurance, photos of the vehicle, service history if available, and details of any restoration work. If the car is an import, you'll need compliance paperwork and confirmation that it's legally registered in Australia. Lenders want to see that the vehicle is roadworthy, insurable, and won't disappear into a garage for an indefinite rebuild.

Using a balloon payment to lower monthly costs

A balloon payment lets you defer part of the loan amount to the end of the term, which reduces your monthly repayment but leaves a lump sum due when the loan matures. Consider a buyer financing a $70,000 classic with a $14,000 balloon. Instead of paying off the full amount over five years, they carry a lower monthly repayment and either pay the balloon from savings, sell the vehicle, or refinance at the end of the term.

Balloons work well if you're confident the vehicle will hold or increase in value, or if you're treating it as an investment and plan to sell within a few years. They're less suitable if you want to own the car outright without ongoing debt. Lenders typically allow balloons up to 30% or 40% of the loan amount, depending on the vehicle and your circumstances.

Insurance and storage considerations

Specialist lenders require comprehensive insurance, and some insist on agreed value policies rather than market value. That means the insurer and you agree upfront on what the car is worth, so there's no dispute if it's written off. Agreed value premiums are higher, but they protect both you and the lender.

Some lenders also ask where the vehicle will be stored. A classic parked on the street in a high-theft suburb is a harder sell than one garaged in a secure location. If you're storing the car at a commercial facility or club, mention that in your application. It won't guarantee approval, but it removes a potential objection.

How Perth car finance brokers help with classic car applications

Brokers who work with specialist lenders save you the time of calling around and being rejected by mainstream banks. We regularly see buyers waste weeks chasing lenders who don't finance classics, when a single call to the right specialist would have delivered a conditional approval within 48 hours. Brokers also know which lenders accept which makes, models, and eras, so you're not applying blind.

In a scenario like this, a buyer found a 1972 Datsun 240Z listed at $55,000 in Victoria. They approached their bank, were declined, then contacted a broker. The broker arranged a valuation through an accredited appraiser in Melbourne, submitted the application to a specialist lender, and secured approval at 9.5% over five years with a 20% deposit. The buyer paid $11,000 upfront, financed $44,000, and had the car transported to Perth within a fortnight.

If you're considering a classic car purchase and need finance that actually fits the vehicle, call one of our team or book an appointment at a time that works for you.

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