5 Financing Myths Holding You Back from Investing in a Modern Classic

As new cars continue to evolve with advanced technology, driver assistance systems, and muted exhausts, some enthusiasts feel that the raw, engaging driving experience is becoming less prominent. This has led to a growing interest in older cars, with modern classics gaining popularity as a result.

Not only does buying a modern classic let you relive the iconic driving experience, but it can also be a smart long-term investment. However, many prospective buyers hesitate at the final step due to uncertainties about purchasing older vehicles and navigating car financing options. We're here to debunk some common myths about financing modern classics and show how Charles & Dean can help you purchase one with confidence:

1. You Can’t Finance Older Vehicles

Financing older vehicles is possible using a secured finance agreement, where the car is collateral. Since modern classics tend to hold, or in some cases, even increase in value, lenders will often view them as lower-risk assets and offer more favourable financing terms than you may think.

2. The Age of the Vehicle Will Mean the Rates Will Be a Lot Higher

Although securing finance for modern classics can present difficulties at times, some of the lenders on our panel offer options that are equally competitive as those available for newer vehicles.

These lenders posses a strong understanding of modern classics, their unique value and market dynamics, which makes them more comfortable with the risks involved in financing these vehicles. However, with this in mind, the vehicle's condition must be of a certain standard for the lender to proceed.

3. You Can Only Finance Exotic Classics

Generally, our lenders prefer to lend against blue-chip classics, as their value tends to remain more stable over time therefore, being a stronger asset to have on their books. However, lenders will also take an open view of alternative cars, like modern classics, on a case-by-case basis.

No matter how rare or unique the car is, the funder may need to review the car before they are happy to proceed. This is more for peace of mind for the customer and lender to ensure the vehicle is a safe buy to mitigate any potential risks down the line.

4. It’s Harder to Qualify for a Loan on Modern Classics

Most likely, there will be an element of minimum criteria to be met as a customer to fund older vehicles, you could be surprised that most of the time it's no harder to finance a modern classic than a newer vehicle. Lenders will consider factors like your credit history, income, residential status and most importantly the nature and value of the car to aid their decision whether to fund a modern classic or not.

5. The Car Needs to Come From a Dealership

Here at Charles & Dean, we would always recommend purchasing a vehicle from a reputable dealership. However, both we and our funders recognise the supplier market for older vehicles can be a more limited, with many being sold privately, at auction, or even off-market. To accommodate this, some of our specialist lenders are willing to finance cars via these supplier routes subject to vehicle condition, history and proof of title.

Why Use Charles & Dean?

Using a C&D broker offers many advantages when navigating Motor finance agreements:

Tailored Solutions: We can match you with lenders offering payment options tailored to your needs.
Market Awareness: Our team of brokers understand the current market, securing you the best deal from our panel of lenders, which suits your financial situation.
Competitive Rates: Access to a wide panel of lenders including some of the most competitively priced products in the market.

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Written by

Dean Clarke

With over 15 years in the motor industry, Dean is an experienced Motor Finance Broker and leads the Charles & Dean Motor division. Dean has love for all things automotive, with a real passion for unusual and quirky cars. Over the years, he’s built strong relationships with a wide network of lenders and suppliers, ensuring clients have access to the best finance solutions.

5 Financing Myths Holding You Back from Investing in a Modern Classic

1. You Can’t Finance Older Vehicles

2. The Age of the Vehicle Will Mean the Rates Will Be a Lot Higher

3. You Can Only Finance Exotic Classics

4. It’s Harder to Qualify for a Loan on Modern Classics

5. The Car Needs to Come From a Dealership

Why Use Charles & Dean?

Let’s start with your name & email

01780 763836

1. You Can’t Finance Older Vehicles

2. The Age of the Vehicle Will Mean the Rates Will Be a Lot Higher

3. You Can Only Finance Exotic Classics

4. It’s Harder to Qualify for a Loan on Modern Classics

5. The Car Needs to Come From a Dealership

Why Use Charles & Dean?

Let’s start with your name & email

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