Specialist
Best ways to finance Classic Cars in the UK
For buying and refinancing Classic Cars
Speak to us today...
For buying and refinancing Classic Cars
Speak to us today...
High quality classic car finance solutions for UK & international clients.
We can deliver enhanced, bespoke or exclusive terms through our market knowledge.
Call us on 0203 900 4322 to discuss your requirements.
If you are a classic car enthusiast, you might have dreamed of owning your own vintage vehicle. However, buying a classic car can be a costly and complicated process, especially if you need to finance it. That’s why you need to know the best ways to finance classic cars in the UK, and how Clifton Private Finance can help you find the most suitable option for your needs and budget.
In this article, we will cover the following topics:
There are various types of finance options that are available for classic car buyers in the UK, depending on the age, condition, and value of the car. Some of the most common options are:
There are many models of classic cars that are considered collectible and desirable, from 1920s roadsters to 1960s muscle cars. Some of the most popular and iconic classic cars that you can buy on finance in the UK are:
Table
|
Model |
Description |
Price Range |
Monthly Payment |
|
Jaguar E-Type |
Iconic British sports car, petrol engine, sleek and elegant design, powerful and smooth performance, leather seats, chrome bumpers, wire wheels, advanced safety and infotainment features |
£40,000 to £300,000 |
£400 to £3,000 |
|
Mini Cooper |
Small and agile British car, petrol engine, fun and economical performance, stylish and colourful design, spacious and comfortable interior, leather seats, panoramic roof, advanced safety and infotainment features |
£5,000 to £50,000 |
£50 to £500 |
|
Aston Martin DB5 |
Classic British grand tourer, petrol engine, refined and exhilarating performance, luxurious and sophisticated design, premium and spacious interior, leather seats, digital cockpit, advanced safety and infotainment features |
£500,000 to £1,000,000 |
£5,000 to £10,000 |
|
MG MGB |
Popular British roadster, petrol engine, agile and dynamic performance, sporty and charming design, leather seats, chrome bumpers, wire wheels, advanced safety and infotainment features |
£5,000 to £20,000 |
£50 to £200 |
One of the best ways to finance classic cars in the UK is asset finance. Asset finance is when you use an existing asset, such as another car, property, or jewellery, as collateral for a loan to buy a classic car. This way, you can leverage the value of your asset to secure a lower interest rate and a flexible term for your loan, and you can also avoid paying a large deposit upfront.
However, asset finance also has some drawbacks that you need to be aware of. The main drawback is that you risk losing your asset if you fail to repay the loan. This means that you need to be confident that you can afford the monthly payments and that you have a stable income and financial situation. One other drawback is that you may not be able to use your asset for other purposes while it is used as collateral, such as selling it or renting it out.
Another popular way to finance classic cars in the UK is hire purchase. Hire purchase is when you pay a deposit upfront, and then pay the rest of the car’s value in monthly instalments over a fixed period of time, usually between 12 and 60 months. At the end of the term, you own the car outright.
However, hire purchase also has some drawbacks that you need to be aware of. The main drawback is that you have to pay interest and fees on top of the car’s value, which can increase the overall cost of the car. Another drawback is that you do not own the car until you pay the final instalment, which means that you cannot sell it or modify it without the lender’s permission.
A variation of hire purchase is hire purchase with balloon payment. This is similar to hire purchase, but with a difference. At the end of the term, you have the option to either pay a final balloon payment to own the car outright, or return the car to the lender.
Hire purchase with balloon payment is ideal for classic car buyers who want to have lower monthly payments and the option to own the car, and who can afford to pay a large balloon payment at the end. Hire purchase with balloon payment is also suitable for classic car buyers who want to buy a newer or more expensive car that may have a higher residual value.
However, hire purchase with balloon payment also has some drawbacks that you need to be aware of. The main drawback is that you have to pay interest and fees on top of the car’s value and the balloon payment, which can increase the overall cost of the car. Another drawback is that you may face a large balloon payment at the end, which can be difficult to afford or refinance.
Another option for classic car financing is balanced payments. Balanced payments are when you pay variable monthly payments that are linked to the market interest rates, rather than fixed monthly payments. This means that your payments can go up or down depending on the changes in the interest rates.
Balanced payments are ideal for classic car buyers who want to have lower interest rates and the ownership rights, and who are comfortable with the market fluctuations. Balanced payments are also suitable for classic car buyers who want to buy an older or more affordable car that may have a lower market value.
Another option for classic car financing is contract purchase. Contract purchase is when you pay a deposit upfront, and then pay monthly instalments over a fixed period of time, usually between 24 and 48 months. At the end of the term, you have the option to either pay a final balloon payment to own the car outright, return the car to the lender, or trade it in for a new car.
Contract purchase is ideal for classic car buyers who want to have lower monthly payments and the option to own the car, and who can afford to pay a large balloon payment.
Another option for classic car financing is personal contract purchase. Personal contract purchase is similar to contract purchase, but with a difference. At the end of the term, you have the option to either pay a final balloon payment to own the car outright, return the car to the lender, or trade it in for a new car. However, the balloon payment is based on the guaranteed future value of the car, which is agreed at the start of the contract. This means that you do not have to worry about the depreciation of the car, and you can benefit from lower monthly payments.
However, personal contract purchase also has some drawbacks that you need to be aware of. The main drawback is that you have to pay interest and fees on top of the car’s value and the balloon payment, which can increase the overall cost of the car. Another drawback is that you may face mileage restrictions and excess charges if you exceed the agreed limit, or if the car is not in good condition when you return it.
Asset finance is a type of finance that allows you to use the classic car as an asset for your business, while paying a fixed monthly fee to the lender. Asset finance can be either a finance lease or an operating lease, depending on whether you want to own the car at the end of the term or return it to the lender.
At the end of an asset finance plan, you have different options depending on the type of lease you have chosen. Here are the possible scenarios:
As you can see, there are many ways to finance classic cars in the UK, and each one has its benefits and drawbacks. However, finding the best option for your needs and budget can be challenging and time-consuming, especially if you are not familiar with the market and the lenders. That’s why using a finance broker can help you get the best deal and the most suitable option for your classic car purchase.
A finance broker is a professional who can help you find and compare different finance options from a wide range of lenders, and advise you on the best one for your situation.
At Clifton Private Finance, we are a leading finance broker in the UK, and we specialise in classic car financing. We have access to over 100 lenders, including banks, building societies, specialist lenders, and private investors, and we can offer you bespoke finance solutions that suit your needs and budget. We can also help you with any type of classic car, from pre-war classics to modern classics, and from vintage roadsters to luxury saloons.
If you are interested in buying a classic car on finance, contact us today and speak to one of our expert advisers. We will be happy to answer any questions you may have, and provide you with a free, no-obligation quote. We look forward to hearing from you soon.
Call us today to discuss your requirements on 0203 900 4322
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William W
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Sam O'Neill, and the new lender he identified for me, worked tirelessly together using my time constraints, to make sure my mortgage application was completed on time. They are a brilliant company to work with, fast, efficient, open and transparent from the very beginning, and turned a seemingly impossible situation into a viable one. Sam was brilliant throughout the whole process and I would highly recommend him, and his colleague Helen, to anyone without hesitation, I cannot speak highly enough about them.
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I was incredibly lucky to find Clifton Private Finance after a search on line as their service has been more than exemplary. My point of contact was Sam 0’Neill and he was happy to help at every stage during the application of the bridging loan, making a stressful process much easier to deal with. He was always available by phone or email and gave prompt answers to queries I had as well as always getting back to me when he said he would. That to me is excellent customer service and I cannot thank him personally or the company enough for the support they have given me.
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Adam cannot thank you enough for all your support throughout this arrangement. You have gone more than the extra mile to support us. Without you we would not have got our dream retirement home. You have been most professional and personable. Liz and I would be more than happy if you wanted to use us a reference with respect to any future clients.
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You have certainly shown me that you do everything for your clients, including tolerating their excessive emails and questions for updates. I have been kept in the loop, from yourself, about why the delays were occurring (Nationwide, post etc) which I would like to highlight that I really appreciated. I certainly will be able to recommend you to others as and when the need arises.
Mr Morris
I recently contacted Clifton Private Finance after a Google search for bridging finance providers and was immediately struck by their efficiency and support. Forms were emailed over almost immediately and the necessary finance was arranged within a few days. None of the other companies I contacted came close to their professionalism, and the quote that I eventually received was impressive. Thank you Adam, your help has enabled us to reserve the house that we wanted and I certainly recommend you to others.
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