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How to Finance a Classic or Collector Car
Classic car financing works differently from a standard auto loan. Most banks and credit unions won't touch a vehicle that's 25+ years old with six-figure mileage and no Kelley Blue Book value. At Frankman Motor Company, we've spent over 35 years helping buyers navigate the unique world of classic and collector car financing. Here's what you need to know before buying your dream car.
Why Classic Car Financing Is Different from Standard Auto Loans
When you walk into a bank or credit union to finance a newer used car, the process is straightforward. The lender checks your credit, pulls the vehicle's value from Kelley Blue Book or NADA, and structures a loan based on standard depreciation schedules. The vehicle serves as collateral, and the lender knows exactly what it's worth at every point during the loan term.
Classic cars break every one of those rules.
Most traditional auto lenders have strict restrictions that automatically disqualify classic and collector vehicles. These typically include age limits (often 10 years or newer), mileage limits (under 100,000 miles), and a requirement that the vehicle has a standard book value. A 1972 Chevelle, a 1968 Ford Bronco, or a 1955 Chevy Bel Air doesn't fit any of those boxes. There's no standard valuation guide, no depreciation curve, and no predictable resale value.
That's why classic car buyers need to look beyond their local bank. Specialty lenders, personal loan platforms, and cash deals are the three primary paths to purchasing a classic or collector vehicle.
Typical Requirements for Classic Car Loans
Whether you go through a specialty classic car lender or a personal loan platform, the requirements tend to be more demanding than a standard used car loan. Here's what most classic car financing options have in common.
What Lenders Typically Require
Larger Down Payment
Most classic car lenders require 20% or more down. Some specialty lenders require even higher depending on the vehicle's rarity and condition.
Excellent Credit
Classic car loans are considered higher risk. Most specialty lenders want a credit score of 700 or above, and some require 750+.
Vehicle in Good Condition
Specialty auto lenders typically require the vehicle to be in running, drivable condition. Project cars are harder to finance through traditional channels.
Professional Appraisal
Since classic cars have no standard book value, many lenders require a professional appraisal to establish the vehicle's current market value.
Shorter Loan Terms
Classic car loans often have shorter terms than standard auto loans — typically 36 to 72 months, depending on the lender and vehicle value.
Proof of Storage & Insurance
Some lenders require proof that the vehicle will be stored in a garage or covered facility, along with a specialty classic car insurance policy.
Most banks and credit unions won't finance a classic car. That doesn't mean you can't get a loan — it means you need to know where to look.
Two Lending Partners for Classic Car Financing
At Frankman Motor Company, we've identified two lending partners that consistently deliver results for our classic car buyers. Each takes a fundamentally different approach to the loan, and understanding the difference is key to choosing the right path for your purchase.
JJ Best Banc & Co.
Specialty Classic Car Auto Loan- Dedicated classic, collector, and exotic car lender
- True auto loan — the vehicle is the collateral
- Well-known and trusted in the collector car community
- Finances vehicles from the 1900s through modern exotics
- Competitive rates for borrowers with strong credit
- Requires the vehicle to be in good, drivable condition
- May require a professional appraisal
- Typically requires 20%+ down payment
LightStream
Personal Loan — Not an Auto Loan- Personal loan platform (a division of Truist Bank)
- Not an auto loan — they lend based on your ability to repay
- They don't ask for the VIN, vehicle age, or mileage
- No lien placed on the vehicle — you own the title free and clear
- No appraisal required
- Fast funding, often same-day
- Requires excellent credit and strong income
- Fixed rates with no fees
Why this matters: Because LightStream is a personal loan, the vehicle's age, mileage, and condition are irrelevant to the lending decision. They only care whether you can pay back the loan. This makes LightStream an ideal solution for classic cars that don't qualify for traditional auto financing — including project cars, barn finds, and vehicles without standard book values.
JJ Best Banc & Co. — The Classic Car Specialist
JJ Best Banc & Co. is one of the most recognized names in classic and collector car lending. They've built their entire business around financing vehicles that traditional banks won't touch — everything from pre-war classics to modern muscle cars and exotic sports cars.
Because JJ Best issues a true auto loan, the vehicle serves as collateral. That means they'll want to verify the vehicle's condition and value before approving the loan. For our customers at Frankman, this process is straightforward because our classic inventory is well-documented and maintained.
JJ Best is often the best fit for: Buyers with strong credit who are purchasing a well-maintained, drivable classic car and want a traditional auto loan structure with competitive rates.
LightStream — The Personal Loan Advantage
LightStream is fundamentally different from every other classic car financing option. It's a personal loan, not an auto loan. When you apply through LightStream, they evaluate you — your credit history, income, and overall financial profile. They don't ask what vehicle you're buying. They don't ask for a VIN. They don't care if the car is from 1955 or 2005.
This distinction is critical for classic car buyers. Because the loan has nothing to do with the vehicle itself, there are no restrictions on age, mileage, condition, or book value. You can use a LightStream personal loan to buy a numbers-matching resto-mod, a barn find project, or a fully restored show car — it doesn't matter. If you qualify based on your personal financial profile, the loan is approved.
Another major advantage: because it's a personal loan, no lien is placed on the vehicle. You receive a clean title from day one. This is a significant benefit for collector car owners who may want to show, insure, or resell the vehicle without dealing with lien release paperwork.
LightStream is often the best fit for: Buyers with excellent credit who are purchasing a vehicle that doesn't fit traditional auto loan criteria — including project cars, high-mileage classics, or vehicles without standard book values.
Buying a Classic Car with Cash
A significant number of classic car transactions are cash deals, and there are good reasons for that. Classic cars don't follow standard depreciation curves, they can be difficult to insure through traditional channels, and the financing options available often require strong credit and large down payments. For many buyers, paying cash simplifies the entire process.
Cash deals make the most sense when:
- The vehicle is a project car or barn find that won't qualify for a traditional auto loan
- You want to avoid interest charges entirely
- The purchase price is under $25,000 and financing costs would outweigh the convenience
- You prefer to own the vehicle outright with no monthly payment obligations
- The vehicle's value is difficult to establish, making lender approval unlikely
At Frankman Motor Company, we handle cash transactions regularly. Whether you're buying a $12,000 project truck or a $75,000 fully restored classic, our team makes the paperwork and title transfer process seamless.
Classic Car Insurance Considerations
Financing a classic car is only half the equation. Insuring one is a different conversation entirely. Standard auto insurance policies base their payout on the vehicle's actual cash value at the time of a loss, which is determined by depreciation. For a classic car that may have appreciated in value, this approach can leave you severely underinsured.
Agreed Value Policies
Classic car insurance should be an agreed value policy, not an actual cash value policy. With an agreed value policy, you and the insurer agree on the vehicle's value upfront. If the vehicle is totaled or stolen, you receive that agreed amount — no depreciation, no negotiation. This is the standard in the collector car world and critical for protecting your investment.
Our Recommendation: BerkleyOne
We recommend BerkleyOne for classic car insurance coverage. They specialize in high-value and collector vehicles and offer the agreed value policies that classic car owners need. For a deeper look at how insurance works for financed and classic vehicles, read our full guide: Insurance Coverage for Financed Vehicles.
The Frankman Classic Car Advantage
Most dealerships sell classic cars as-is and move on. Frankman Motor Company is different. We maintain a dedicated classic car inventory, operate an on-site body shop with full restoration capabilities, and offer dry ice blasting services for thorough, chemical-free restoration cleaning. Our team understands the classic car market — from valuations and financing to restoration and long-term care. With over 35 years in business and more than 70,000 vehicles sold, we bring a level of expertise that most dealerships simply don't have.
Choosing the Right Financing Path
The right financing approach depends on your financial profile, the vehicle you're buying, and how you plan to use it. Here's a quick framework to help you decide.
Choose JJ Best if: You have strong credit (700+), the vehicle is in good drivable condition, you're comfortable with a traditional auto loan structure where the vehicle serves as collateral, and you want competitive auto loan rates.
Choose LightStream if: You have excellent credit (usually 700+), the vehicle doesn't meet traditional auto loan criteria (too old, too many miles, no book value, project condition), you want a clean title with no lien on the vehicle, or you want fast, same-day funding.
Choose a cash deal if: The vehicle is a low-cost project, you want to avoid interest and monthly payments, or the vehicle's value is too uncertain for any lender to underwrite.
Not sure which path is right for your situation? Call our finance team. Kevin Marlow (Finance Director) and Nate Russell (Finance Manager) have worked with every type of classic car deal and can walk you through your options based on the specific vehicle you're looking at.
Classic Car Financing FAQs
Yes. While most traditional banks and credit unions won't finance vehicles over 10–15 years old, specialty lenders like JJ Best Banc & Co. finance classics from every era. Alternatively, a LightStream personal loan has no vehicle age restrictions at all because the loan is based on your creditworthiness, not the vehicle.
Most classic car financing options require good to excellent credit. JJ Best typically looks for scores of 700 or above. LightStream also requires strong credit, generally in the 700+ range, along with a stable income history. Classic car loans are considered higher risk than standard auto loans, so lenders set higher thresholds.
JJ Best Banc & Co. is a specialty auto lender — they issue a traditional car loan where the vehicle serves as collateral. They'll verify the vehicle's condition and value. LightStream is a personal loan platform — they lend based entirely on your financial profile. They don't ask for the VIN, don't care about the vehicle's age or condition, and don't place a lien on the car. The key difference: JJ Best evaluates both you and the vehicle, while LightStream only evaluates you.
Traditional auto lenders and most specialty lenders (including JJ Best) typically require the vehicle to be in running, drivable condition. However, LightStream is a personal loan — because the loan is based on your credit and income rather than the vehicle itself, you can use the funds for any vehicle regardless of its condition. Cash is also a common path for project car purchases.
For specialty auto loans through lenders like JJ Best, you should expect to put down at least 20% of the purchase price. Some vehicles or loan amounts may require more. LightStream personal loans do not require a down payment since the vehicle is not used as collateral, but putting money down reduces the amount you need to borrow and lowers your monthly payment.
It depends on the lender. JJ Best may require a professional appraisal to establish the vehicle's value since classic cars have no standard book value. LightStream does not require an appraisal because the vehicle is not used as collateral — your personal financial profile is the only factor in the lending decision.
Classic cars should be insured under an agreed value policy, not a standard actual cash value policy. An agreed value policy guarantees a pre-determined payout if the vehicle is totaled or stolen. We recommend BerkleyOne for classic car insurance. You can learn more in our full insurance guide at /finance/car-buying-tips/used-financed-car-insurance-coverage/.
Yes. Frankman Motor Company maintains a dedicated classic car inventory that includes classic trucks, muscle cars, and collector vehicles. We also have an on-site body shop with full restoration capabilities and dry ice blasting services. Browse our current inventory at /inventory/ or call us at (605) 250-5016 to ask about specific vehicles.
Absolutely. Frankman Motor Company operates a full on-site body shop with restoration capabilities. We also offer dry ice blasting — a chemical-free cleaning process that strips paint, grease, undercoating, and rust from classic car frames, engine bays, and undercarriages without damaging the underlying metal. Whether you need a full frame-off restoration or a detail-level cleaning, our team can handle it.
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26874 SD Highway 11
Sioux Falls, SD 57108
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Ready to Finance Your Classic?
Talk to Kevin or Nate about your classic car purchase. They'll help you choose the right financing path based on the vehicle you're looking at and your financial situation.