FAQ

Ex-military vehicles are extremely popular with collectors of both military memorabilia and classic vehicles. Lenders that are active in the classic car finance space can offer to lend for the purchase of ex-military vehicles. These may be in operational or non-operating condition. The type of lending most suited would depend on a number of factors. If the vehicle is in good condition the Secured Car Finance format for classic cars may be most suitable. If the vehicle requires restoration and is therefore not in good condition, Unsecured Personal Financing may be most suitable. The interest rate on these types of finance varies.

Yes. The classic car market encompasses auction houses, specialist motor vehicle dealers and private sellers. Where or from whom the classic car is being purchased is not a condition of being eligible for lending nor should it affect the type of loan options or the interest rate applicable. The lending is quoted by lenders based on an assessment of the applicant, the purpose of the purchase and the vehicle itself. If purchasing from a private seller or at auction, it can be useful to arrange pre-approved finance prior to entering discussions with the seller or attending the auction. Having finance confirmed can provide buyers with greater confidence and it can be a negotiating tool. Private sellers may be keen to sell and incentivised to reduce their price for a quick sale which pre-approved lending provides.

Classic cars are defined in finance sectors as vehicles that are 30+ years old. These vehicles may or may not be eligible or pass registration. It is understood by lenders that offer this type of finance that a classic car may not be registered for use on state roads. Car registration is not a condition of all types of classic car lending. If the vehicle is operational and will be used on roads, then it will need to be registered. If it is exclusively kept off-road, in storage, then registration would not be necessary. With all secured loans, an insurance policy is required to be taken out on the goods. Whether the classic car is registered or not will be a factor for consideration by insurers when issuing a policy.

If a business is acquiring a unique, rare or classic vehicle, the finance product application will be dependent on a number of factors including the purpose of the loan, the use of the vehicle and the business structure purchasing the vehicle. To be eligible for tax benefits applicable to business finance, the purchase would need to meet ATO rulings in regard to business vehicles and/or assets.  The most suitable lending facility may depend on whether the purchase is for a vehicle to be used in the business, as an investment by the business or as a marketing prop. Finance options may include Secured or Unsecured Business Loans and in some cases such as a purchase by an SMSF, Chattel Mortgage, Leasing or CHP may be applicable.

In general, a classic car is defined as a motor vehicle which is over 30 years old. This may include passenger cars, trucks and buses. The vehicle can be considered historic, antique, collectible, vintage or retro. Lending is available for passenger cars, collectibles, ex-military vehicles, vehicles acquired from international sellers and imported, left and right hand drives and others. Unique and rare vehicles can also be financed and these can be less than 30 years old and as such may attract different lending and interest rates.