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Common Types of Classic and Collector Car Financing

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Common Types of Classic and Collector Car Financing

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Common Types of Classic and Collector Car Financing

Whether you just found the classic car of your dreams or are laying the foundation to purchase the collector car you’ve been eyeing, do not forget to research financing options. With a variety of different lending products in the marketplace, take your time to determine what option is best for you. Here’s the list of five different types with pros and cons.

Hobby Specific Financing (Classic Car Loans)

This type of financing is purpose-built for antique, classic, or collector cars. Lenders who specialize in these types of vehicles understand them better than a typical bank and therefore can put together a loan with more favorable terms than you would get elsewhere. Monthly payments are frequently low with low-interest rates and generous terms. Loans are secured auto loans and are usually fixed simple interest.

Woodside Credit falls into this category. Woodside is solely focused on classic, collector, and exotic loans. Strength comes from expert knowledge and understanding the true values of the vehicles, allowing for unmatched loan products.

Personal Loans

For lenders without hobby-specific financing, many offer unsecured personal loans in place of classic car loans. Loan amounts vary but are typically capped well below hobby-specific financing. This loan type lacks any sort of collateral and tends to exceed the prime rate. This choice has the upside of being convenient, but be cautious of high-interest rates, short terms, and loan risk.

Home Equity Loans

Low (and sometimes variable) interest rates for mortgages and the tax-deductible nature are why some opt for home equity loans. Disclaimer: Consult your tax advisor to confirm before going this route. There are big risks associated with home equity loans, so ensure you do your due diligence when choosing this route.

Local Banks

Many people have great relationships with their banks and often start there. Local banks tend to not differentiate between a typical used car and a collector car. This can mean a shorter loan term (up to 36 months), high-interest rates, and limitations to the age of the vehicle (most will not finance cars that are more than 10 years old). Additionally, the valuation of the vehicle can prove difficult in these situations as classic car values can be determined differently than used cars.


Leasing is attractive for its low monthly payment. As you can see in this comparison though, it does not always achieve that. Some leases are close-ended or open-ended, so ensure the agreement you sign makes sense for the duration of the lease and what you want to do afterward. Additionally, be cautious about balloon loans, which could lead to a large payment in the end. Keep in mind you do not own the car in a lease.

Ready to learn more about Woodside? Let us help you navigate the classic car world. As the dedicated loan provider for Barrett-Jackson, our classic car knowledge runs deep.


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