What an antique car loan is and how it differs from a regular auto loan

An antique car loan is a loan designed specifically for vehicles that are typically 25 to 40 years old, depending on the lender's definition. Unlike a standard auto loan, which bases the loan amount on the car's current market value, an antique car loan often works differently because the car's value may be hard to pin down, may increase over time, or may depend heavily on its condition and rarity.

Most traditional lenders — banks and credit unions — do not offer antique car loans. Instead, you will find them through specialty lenders who focus on classic and collector vehicles. These lenders understand that an antique car is often not your primary transportation and may sit in storage for months. They also know that the car's value is not determined by the same pricing guides used for everyday vehicles.

The loan terms, interest rates, and down payment requirements can differ significantly from a standard auto loan. Some antique car lenders may require a larger down payment, charge a higher interest rate, or limit how many miles you can drive the car per year. Others may offer lower rates if you can prove the car is stored in a garage or that you have comprehensive insurance.

Key Takeaways

  • Antique car loans come from specialty lenders, not from banks or credit unions that handle regular auto loans.
  • The loan amount is based on an appraisal or agreed-upon value rather than standard pricing guides, because antique cars do not depreciate like new vehicles.
  • Lenders often require proof of storage, comprehensive insurance, and sometimes a larger down payment than you would need for a regular car.
  • Interest rates and terms vary widely depending on the car's age, condition, rarity, and how you plan to use it.
  • You will need documentation of the car's history, condition, and value before a lender will consider your request.

Where to find antique car lenders

Specialty finance companies that focus on collector and classic vehicles are your main source. Companies like Hagerty, J.J. Best Interests, and Bridger Aerospace Capital work with antique car owners and can walk you through their process. You can also contact local credit unions — some have programs for members who own classic cars, even if they do not advertise them widely.

Classic car clubs and enthusiast organizations sometimes maintain lists of lenders they work with or recommend. If you belong to a club for your car's make or model, ask the membership or leadership whether they have financing contacts. Antique car dealers and restoration shops also often know which lenders will finance their inventory and may be able to refer you.

Online searches for "antique car financing" or "classic car loans" will surface options, but verify that any lender you contact is legitimate before sharing personal information. Check whether they are registered with your state's banking regulator and whether they have a physical address and phone number you can confirm.

What lenders will ask for before they consider your request

You will need to provide proof of the car's value. This is not a Kelley Blue Book listing — it is usually a professional appraisal from someone who specializes in antique or classic vehicles. Some lenders will accept a valuation from a recognized pricing guide for collector cars, such as NADA Guides' classic car section, but many require an in-person appraisal. Budget several hundred dollars for this appraisal, and know that the lender may order their own appraisal as well.

Lenders will also want documentation of the car's history and condition. This might include service records, restoration receipts, photographs of the car's current state, and the vehicle history report (VIN check). If the car has been restored, bring receipts or documentation showing what work was done and when.

You will need to show proof of insurance — specifically, comprehensive coverage that names the car. Many antique car owners use specialty insurance companies like Hagerty or Grundy, which offer lower premiums for cars that are garaged and driven infrequently. The lender may require that the car be insured before they will fund the loan.

Finally, lenders will review your credit history and income just as a bank would for a regular auto loan. They want to know that you can make the monthly payment, regardless of the car's value.

How the loan amount and interest rate are determined

The loan amount is based on the appraised value of the car, not on a standard pricing formula. If the appraisal comes in at $35,000, the lender may offer to finance up to 70 or 80 percent of that value, meaning you would put down $7,000 to $10,500. The exact percentage varies by lender and by how much documentation you can provide about the car's condition and history.

Interest rates for antique car loans typically range higher than rates for new or recent-model cars, but the exact rate depends on your credit score, the loan term, the car's age and condition, and how the car will be used. A car that is garaged year-round and driven only to shows may may have access to for a lower rate than one that is driven regularly. Some lenders offer rates that are competitive with standard auto loans if you have good credit and can meet their storage and insurance requirements.

Loan terms are often shorter than for regular cars — you might see 5 to 10 years rather than 6 to 7 years — though some lenders do offer longer terms. A shorter term means a higher monthly payment but less interest paid overall.

Mileage limits and usage restrictions

Many antique car lenders restrict how many miles you can drive the car per year. A common limit is 2,500 to 5,000 miles annually, though some lenders allow up to 10,000 miles. The idea is that an antique car is a collector's item or weekend vehicle, not daily transportation. If you exceed the mileage limit, you may face a penalty or the lender may demand early repayment.

Some lenders also require that the car be stored in a garage or enclosed storage facility, not parked outside. They may ask for photographs of your storage space or require you to provide proof of a storage lease. This protects their collateral — the car — from weather damage and theft.

Before you commit to a loan, ask the lender directly what restrictions explore and whether they match how you actually plan to use the car. If you want to drive the car regularly or take it on long trips, you may need to find a lender with more flexible terms, or you may need to accept a higher interest rate.

Insurance requirements and costs

Lenders will require comprehensive insurance on the car before they will release the loan funds. Comprehensive coverage protects against theft, vandalism, weather, and accidents — not just collision. The lender will be named as a loss payee on the policy, meaning they receive payment if the car is damaged or totaled.

Specialty insurance companies that focus on classic and antique cars often charge less than standard auto insurers because they understand that these cars are driven infrequently and stored carefully. Companies like Hagerty, Grundy, and American Collectors Insurance offer policies designed for antique vehicles. Premiums can range from $300 to $800 per year depending on the car's value, your age, your driving record, and how many miles you plan to drive.

Ask your insurance company whether they will insure the car before you explore for the loan. Some insurers have minimum age requirements (the car must be at least 25 or 30 years old) or may not insure certain makes or models. Getting insurance quotes before you explore for the loan will help you understand the true cost of ownership.

Down payment expectations and loan terms

Antique car lenders typically expect a down payment of 15 to 30 percent of the car's appraised value, which is higher than the 10 to 20 percent common for regular auto loans. If the car is appraised at $40,000, you might need to put down $6,000 to $12,000. Some lenders will negotiate if you have excellent credit or if the car has exceptional documentation and condition.

Loan terms vary. Some lenders offer 5-year terms, others go up to 10 years. A longer term lowers your monthly payment but increases the total interest you pay. A shorter term means higher monthly payments but you own the car sooner. Before you choose a term, calculate the total cost of the loan — principal plus interest — so you understand what you are committing to.

Ask whether the loan has a prepayment penalty. Some lenders charge a fee if you pay off the loan early, while others do not. If you think you might want to pay off the loan ahead of schedule, choose a lender with no prepayment penalty.

Frequently Asked Questions

Can I get an antique car loan if my credit score is below 650?

Most specialty lenders require a credit score of at least 650 to 680, though some will work with lower scores if you can put down a larger down payment or if the car's value is very high. Contact lenders directly to ask about their minimum credit requirements. A credit union you belong to may be more flexible than a specialty finance company.

What if the car I want to buy is not yet in my possession?

Some lenders will finance a car you have not yet purchased, but they will want to inspect it or have it inspected before they approve the loan. Others require you to own the car before you explore. Ask the lender about their process before you make an offer on a car. If you need to move quickly, having a pre-approval letter based on a specific car's appraisal can help.

Do I need a co-signer for an antique car loan?

A co-signer is not always required, but having one with good credit can help you find a lower interest rate or a larger loan amount. If your credit score is below 700 or if your income is modest relative to the loan amount, a lender may ask for a co-signer or may offer better terms if you provide one.

What happens if the car's value drops after I take out the loan?

Unlike new cars, antique cars often hold or increase in value over time. However, if the car is damaged or if the market for that particular model declines, the value could drop. You would still owe the full loan amount, but you would have less equity in the car. This is why comprehensive insurance and proper storage are important — they protect your investment.

Can I refinance an antique car loan later?

Yes, if your credit improves or if interest rates drop, you can refinance with the same lender or a different one. The new lender will order a new appraisal, which may be higher or lower than the original one. Refinancing can lower your monthly payment or shorten your loan term, but it involves closing costs and a new process process.