Personal Loans Car Finance

How to Get A Classic Car Loan on a Budget

Collecting classic cars is one of the costliest hobbies around and it is a little trick to get a classical car loan. The price tag on such a baby is sure to cause a panic attack in many people. People found ways of getting a classic car loan despite having a normal budget that in certain circumstances would destroy their dreams of being at the wheel of a vintage beast. If you’re aiming at getting a classic loan but your budget is nothing out of the ordinary, you might find this guide very handy. Let’s take a look at the steps you have to take in order to get classic car loans on a tight budget.

Classic car loan Guidelines 

Consider private lenders 

Credit unions and banks are not a good source of car loans, especially when you juggle with a couple of loans already. And even if they offer you the car loan you require, it will probably have a huge interest rate and it will be secured on your house. Private lenders, on the other hand, have a wide variety of car loans that come with affordable interest rates. What’s more, many of them are willing to tailor repayment plans for their clients.

You can find a private lender pretty easily. Just surf the Internet for a while and you’ll definitely find one. Stay away from lenders who ask for deposits or any other sort of down payment.

Hire a broker for your classic car loan

One that specialises in car financing, to be more precise; if you can’t seem to find a good deal, no matter how hard you try, such a broker can do some research and get back to you with one.

Moreover, a car broker can easily save you some funding, as well as the hassle of doing all the research on your own. Brokers collaborate with a lot of lenders. Sometimes you don’t even have to pay the broker because he works on a commission. In other words, if he gets you the dream-deal, he’ll get a certain sum of money from the lender he hooked you up with. This is how you save money by hiring a car financing broker.


Tons of classic car enthusiasts choose to lease vehicles and then purchase them. This works perfectly for those people who can’t afford to buy a classic car with a down payment or can’t find a lender that’s willing to hand them some dough. After leasing, you can purchase that vehicle outright and you’ll know for sure how efficient the car is and whether or not it’s as worth it as you thought it would be initially. This is the best alternative to car loans you have (and the safest, to be completely honest with you).


A Home Equity Line of Credit could actually provide you with enough funds to purchase the classic car you’ve been dreaming about for so long. Of course, you have to own quite a large, modern house that has a lot of equity in it. As you might know, a HELOC is a loan that’s secured on your house, which serves as collateral. If you fail to repay the loan, the lender can place a lien on it and sell it. The HELOC, therefore, should be your last resort. The Home Equity Line of Credit usually serves other purposes, but it’s totally possible to get a car with the money that comes from it.

Secured or unsecured

You’ll have to determine if you want an unsecured loan or a secured one. Under a secured one, you’ll get more money and lower interest rates. Under unsecured car loans, you’ll get a more limited amount of money and higher interest rates. But then again, an unsecured loan doesn’t pose a threat to your assets. If you fail to repay it, the worst thing the lender can do is to sue you. Keep in mind that he can get the right to place a lien on your assets even in this circumstance.

Extra caution is therefore advised. You certainly don’t want to be living in a Cadillac, as cosy as it might be. Think twice or even thrice about this issue and make a decision you won’t live to regret after a while.

Concluding Remarks 

Classic car loans are a great way of finding the car you want to get but can’t afford to purchase outright. Australian Lending Centre can provide some really valuable advice when it comes to taking advantageous car loans, as well as the financial products themselves. Make an enquiry on the website and you’ll most definitely find a car loan that suits all your needs and comes with an affordable interest rate and a good repayment plan. We hope you’ll get to be at the wheel of that shiny, vintage car you’ve been dreaming about for years on end.


Should You Pay in Cash or Get Car Loans?

If you’re looking for extremely low rates to finance a new car, you have to make sure that it is not the only thing you are looking at. Remember that a car dealer gets a better deal when financing your car, than getting paid for it in cash; unless the lender pays for it and you have to pay the financing company on your own. So, it wise to consider the following things when planning to tie up your finances with car loans.

Financing a new car may or may not be a good deal depending on the following circumstances:

  1. Credit report. It’s easy to get favorable loans when your credit is good. But, what about if you have a bad credit? You can still get a car loan by doing the following things:
  • Know your credit score to know where you financially stand.
  • Check your credit report and correct erroneous entries. If there are problem areas in your report, lenders may be hesitant to lend you money.
  • Find a reputable lending company by checking their business in the business bureau, and reading reviews about the company. Good lenders can tell you not only the monthly payment, but the interest rate, loan terms and other hidden fees. It is advisable to work with companies that lend to people with bad credit.
  1. Employment record. When you are hopping from job to job, lenders may not give you the best deals. But, if you have a stable employment, and you have extensive list of assets, the lenders may look at your application favorably.
  2. Outstanding debts. If you have big debt loads and you have financial capacity to cut it down, pay the high-interest loans first and pay off your smaller debts to give some allowance for your payments. This way, you will not only improve your credit score, but your monthly finances as well. Close unused charge accounts and credit cards, except for your oldest credit card.
  3. Budget. If you have earned adequate amount of money and it is sitting there for you to use, why not pay in cash?

If you don’t want to spend more than you earn each month, then getting car loans may not be your best choice. Paying in cash can help you handle your budgets well because you don’t have to pay for the interests. But, if you don’t have large amounts of cash and you really want to buy a car today, then a car loan can help you get it.

Final thoughts

Avoid getting car loans unwisely. Remember the cost of debt. It can leave you in a financial mess if you don’t know what you are getting into.  Don’t succumb to the temptation to apply for car loans which are beyond your means to pay off.

When you apply for car loans always do the math. Figure out if the interest rates, associated fees and loan terms are worth the cost.

For more information, contact us and we will help you find a loan solution that works for you.