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Financing a classic, collector or prestige car in Australia

Christian Tucker
6 days ago
6 min read

Updated: 4 days ago

Insights from AGFB · Checked 2 October 2026 · About 6 minutes

In brief

  • Many lenders set a maximum age for the car at the end of the loan, so older classics often sit with specialist lenders or are funded another way.

  • Lenders lend against the value they accept, not just the price you pay. Rare cars usually need independent evidence of value.

  • Secured lenders usually require comprehensive insurance, and agreed-value cover is common for classic and collector cars.

  • A secured car loan, an unsecured personal loan and home equity each trade cost, risk and flexibility in different ways.

How do lenders view older cars?

Most car lenders rely on pricing guides, and many set a maximum age the car can reach by the end of the loan. The limit varies between lenders and products. A 40-year-old classic, or an older prestige model, can fall outside standard policy while still being valuable.

That doesn't rule out finance. Some lenders assess classic and collector cars individually, looking at the specific car's value evidence, condition and history. A shorter term may also bring a car inside an age limit, although the repayment rises.

Registration can matter too. Several states offer concessional or club registration for older vehicles, and the rules differ: Queensland's Special Interest Vehicle Concession Scheme, for example, covers vehicles at least 30 years old and limits use to purposes such as club events. Lenders and insurers may ask how the car is registered and used, so check before you buy.

What is the car worth to a lender?

The loan is sized on the value the lender accepts, which can be lower than the price you agree with the seller. For rare, modified or low-volume cars, lenders often ask for an independent valuation, sometimes backed by recent comparable sales.

Originality, condition, documented history and matching numbers can all move a valuation. If you pay above the accepted value, expect to cover the gap from your deposit.

Private sale, dealer or auction?

Buying from a licensed dealer usually brings more consumer protection, and warranty terms depend on the car. On a new prestige car, luxury car tax applies above a threshold of $80,809 for most cars in 2026–27, and is usually built into the price, adding to what you finance.

A private sale has no warranty and no cooling-off period, so the checks fall to you. A PPSR search on the vehicle identification number (VIN) costs $2 on the official PPSR website and shows whether the car is recorded as having money owing, or as stolen or written off. Lenders usually need any existing finance paid out at settlement, and an inspection by a mechanic or marque specialist is worth the cost.

Auction sales are often unconditional once the hammer falls, with a deposit due on the day and a short time to settle. Read the auction house's terms, and have finance approved, including any valuation the lender needs, before you bid.

Deposits, balloons and the end of the term

A deposit reduces what you borrow and can cover any gap between the price and the accepted value. Lenders may expect a larger contribution for older, rarer or higher-value cars.

A balloon, or residual, leaves a lump sum due at the end of the loan. The regular repayment is lower, but the total cost is generally higher, and lenders usually limit the balloon by term and vehicle age.

Some buyers expect a collector or prestige car to hold enough value to clear the balloon. Values can fall as well as rise, so have a plan to pay it out, refinance or sell, and check it still works if the car is worth less than you hoped.

Car loan, personal loan or home equity?

A secured car loan uses the car as security, and the rate is usually lower than for unsecured lending. The car has to fit the lender's policy on age, value and condition, and the lender can repossess it if repayments aren't made.

An unsecured personal loan doesn't rely on the car meeting those rules, which can suit an unusual car or a restoration project. It usually costs more, the amount available may be lower, and approval leans more on your income, debts and credit history.

Borrowing against equity in your home may offer a lower rate and fewer restrictions on the car itself. The trade-off is that your home becomes the security, and spreading a car purchase over a long home loan term can cost more interest overall unless you repay it sooner.

What insurance will the lender want?

For a secured loan, lenders usually require comprehensive insurance, with the lender noted on the policy as an interested party. For classic and collector cars, agreed-value cover is common, because the policy sets the payout if the car is written off, instead of a market estimate that can be hard to establish for a rare car.

Insurers can review an agreed value at renewal, so check each year that it still covers at least what you owe. Get a quote before you commit, because premiums on high-value cars can be significant.

Buying through your business

If you have an ABN and the car will be used in your business, a chattel mortgage may be an option. The business owns the car from the start, and the car secures the loan. A collector car kept mainly for enjoyment may not suit business finance.

A GST-registered business may be able to claim GST credits to the extent the car is used for business. For passenger cars, both GST credits and depreciation are capped by the ATO's car limit, which is $69,883 for 2026–27, so much of a prestige car's price may sit above it. Buying from a private seller who isn't registered for GST generally means there is no GST credit to claim, and your accountant should confirm what applies to you.

Before you apply

  • Note the car's year, VIN, registration type and how you plan to use it.

  • Get an independent valuation, or ask the lender what value evidence it accepts.

  • For a private sale, run a PPSR search and arrange an inspection.

  • For an auction, have approval in place before you bid.

  • Get an insurance quote with an agreed value that covers at least the loan amount.

  • Decide on your deposit, whether a balloon suits, and how you would pay it.

  • Have income evidence ready, such as payslips or tax returns.

  • If the business is buying, speak with your accountant first.

Common questions

Can I finance a car that is more than 30 years old?

It may be possible. Many mainstream lenders' age limits rule it out, but specialist lenders may consider a classic on its merits, usually with a valuation and agreed-value insurance. An unsecured loan or home equity are other routes.

Will a lender finance the full purchase price?

It depends on the value the lender accepts, your finances and its policy. If you pay more than the valuation, expect to fund the difference yourself.

Can I borrow to finish a restoration?

An unfinished car is usually valued on its current condition, which supports less lending than the finished car would. An unsecured personal loan or home equity may be more practical for funding the work.

Try the numbers

Use our Vehicle & Equipment calculator to compare terms, deposits and a balloon. If you're unsure which route fits, Find Your Next Step asks a few short questions and points you to the right tool or enquiry. Our classic and collector car finance and prestige and luxury car finance pages explain how Christian can help.

Talk it through

Every collector car is different, so talking through the specific car is often the quickest way to see what may be possible.

Sources

General information only. This article does not take into account your objectives, financial situation or needs. Your full financial situation and requirements must be considered before any offer or acceptance of a loan product. It is not tax or legal advice; speak with your accountant or adviser. All lending is subject to the lender's assessment and criteria, and fees and charges apply. Figures and rules are correct as at the checked date shown and can change.

Avantgarde Financial Brokerage Pty Ltd, Corporate Credit Representative 580346, authorised under Australian Credit Licence 389328 held by Connective Credit Services Pty Ltd.

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