Almost every car lover has the same dream, to have their own classic car. Whether you’re a fan of the classic mini, yearn for the elegant curves of a Jaguar E-type, or want to feel the muscle of a classic American muscle car like an old Mustang, to be able to drive a piece of motoring history and call it your own, it’s something every petrolhead wants.

But classic cars are not always the most affordable.

In fact, unless you want to restore a barn find to former glory (which is not cheap in itself), buying a classic car can be pricey.

Especially if you want to buy a car in good working order that won’t require many visits to a specialist garage or desperate searches to find spare parts.

The good news is that you can finance the purchase of your classic car with a hire purchase agreement.

Hire Purchase Explained

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Hire purchase works by diving the cost of the vehicle and the total amount of interest charged, into equal monthly payments with a fixed rate of interest.

This means that you know exactly how much you will be paying for each month of the agreement, and you can arrange your budget accordingly.

What Classic Cars Can I Finance?

The HMRC defines a classic car as being over fifteen years old. It also states that the car must be valued over £15,000 – so unfortunately your old beat-up Ford Fiesta doesn’t count!

In general, classic cars are normally older than twenty years and under seventy. Anything older than that is more of a museum piece than a roadworthy vehicle, unless it has undergone significant restoration.

Another quirk that is sometimes used to define a classic when it comes to financing, is that it cannot be losing its value. The lender might avoid a classic car that is depreciating in value, as it could end up in negative equity.

If you are interested in a restoration project, you should try and work out how much money it will cost you to restore, as this part cannot be financed.

The good news is, with a lot of hard work and TLC, your restored classic car could end up being worth more than the amount you borrowed in the first place!

But if you lose interest or find it too difficult, you will still need to make the repayments of the finance package.

MOT and Taxing Rules for Classic Cars

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Classic cars that were first registered before the 1 January 1979 are exempt from tax. Check the logbook of the car to see when it was registered to see if it falls into this tax exemption bracket. But remember, you have to apply for tax exemption.

If your classic car was built or first registered over forty years ago and has not had any substantial modifications or changes to it since that first date, you may also be exempt from a MOT.

These modifications can be things like replacing the chassis, changing the engine, or modifying how the vehicle works i.e. engine changes.

But just because you don’t need a MOT, doesn’t mean that you can’t get stopped by the police.

You have to ensure that the car is roadworthy at all times, otherwise you can be fined up to £2,500 and be given 3 penalty points.

If you are in doubt, speak to a classic car expert who specialises in the make and model you are interested in.

Invest in Extra Protection

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Classic cars are a beauty to own. But they can also be a pain to care for. And if you have an accident or suddenly need to pay for an expensive part, you can end up with the bills stacking up.

So you should take a look at getting specialist classic car finance. Speak to your current provider to see what options they have, and then shop around to make sure you’re getting the protection and price that you need.

You may also want to invest in classic car warranty. There are a number of specialist providers online who cover different types of classics.

Visit a classic car show or speak to a local classic car club and ask them who they use to protect their vintage motors.

Ask someone with experience and remember to check online reviews from the industry and individuals before you sign up to any of the products available.

Other Things to Consider

Looming large on the horizon is a big crackdown on diesel. Environmental concerns mean the attitude towards diesel is changing, which could mean that diesel engines become heavily taxed.

Classic cars are not the cleanest in terms of emissions, and if public consensus moves towards taxing cars with dirty engines you may run into trouble. You should also consider city emission zones that could prohibit your car from entering.

If you are using your classic as a bit of fun at the weekend, then you shouldn’t have any problems that can’t be dealt with. But if you are planning on driving it on a daily basis, you should be aware of the aforementioned issues.

But if you want a classic car and you want to look after the environment, there is now a way to have the best of both worlds.

Many classic car manufacturers are now offering electric conversions, although this has caused mixed reactions among motorists.

Finance Your Classic Car Today

Apply online today and Creditplus can help find you the perfect car finance package to fund the purchase of your dream vintage motor. Your dedicated customer advisor will be able to talk you through the entire finance process and answer any questions you might have. Just don’t be too surprised if they get a bit envious of the beautiful classic you end up owning!

Apply Online Today

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