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If you are planning to buy an old car but are also worried about financing it, you are not alone. Most banks give auto loans for older cars that are below 10 years old and have been ridden for less than 100,000 miles. Well, there are banks and credit unions that give auto loans for cars older than 10 years. Getting approval is very easy because an auto loan is like a secured loan in which the vehicle serves as the collateral for your loan. So, you do not need to have a good credit score to get one. However, you should make sure that you repay the loan on time to avoid the confiscation of your car by the lender. Now, here is a list of the 5 best loan options to finance an older car.
Best Picks for Auto Loans for Older Cars
Banks usually do not finance an auto loan for car older than 10 years and that have been ridden for more than 100,00 miles. Now, here’s why credit unions and dealerships come useful. Credit unions charge less interest on auto loans and approve the loans easily. You don’t need to have a good credit score. Here are some options to consider when you need auto loans for older cars:
1. LendingTree
LendingTree provides a network of top lenders that give out auto loans at the best rates. You can use it to buy an old car or to lower your existing loan rate. You can get qualified for an older car auto loan in minutes, it is free to use. The lender network is spread all across the country. You can get matched with up to 5 lenders, who choose you depending on your financial profile. Thereafter, you can choose among them, based on their rates. LendingTree has a strict policy on data privacy.
Features
- It is free of cost.
- Swift application process.
- It contains a network of top lenders.
- You can get selected by 5 lenders based on your financial profile.
- You can select among the 5 lenders based on the rates they offer.
Pros
- The application process is smooth.
- You get five different offer options to choose from.
- They keep your data secure and your private details safe.
Cons
- The lender decides the loan rate.
- Unnecessary calls are received from lenders, even after repeated rejections.
2. Auto Credit Express
It is one of the highest-rated lending networks out there for auto loans for older cars. Even if you have bad credit or a history of having undergone a bankruptcy, you can still get approved for auto loans. They have around 4,508 dealership networks across the country. Some lenders on Auto Credit have been in the industry for 10 years or more. They charge interest rates varying from 3.99% to 29.99%. It has been reviewed by a whopping 3,372 people but still manages to have a rating of 4.5 on Trustpilot.
Features
- Auto Credit Express is counted among the highest-rated lending networks.
- They have experienced and trustworthy lenders.
- Their interest rates are low; starting from 3.99%.
- They have around 4,508 dealers and lenders across the country.
- People with any credit history, including prior bankruptcies, are accepted.
Pros
- A huge network of lenders and dealers who finance older cars.
- Trustworthy lenders who understand how the industry operates.
- Even bad credit histories can get approved.
- They have a high rating of 4.5 on Trustpilot.
Cons
- Some lenders charge a high-interest rate.
- The interest rate depends on the lender.
3. Car.Loan.com
Car.Loan.com provides a type of lender network that functions a little differently from the usual way. It is free of cost. Around a thousand people use this platform for auto loans.
You can go to the website, select the car that you would like a loan for, fill out the application, and take the car home on the same day! The process is that fast.
The interest rates are affordable and the site requires no application fees. If you have bad credit or have previously gone through bankruptcy, you can still get approved for auto loans.
Features
- Free of cost.
- The interest rates are affordable.
- They have one of the smoothest and fastest procedures for getting a vehicle.
- Most types of credit histories are approved.
- No application fee is required.
Pros
- Low-interest rates are applied to their loans.
- The application process is swift.
- Credit histories with bad credit scores are also approved in most cases.
- No application fee is applied on signing up.
Cons
- The rate of interest on your loan depends on your lenders.
- There are limited options for borrowers.
4. RefiJet
RefiJet provides an easy and personalized process for refinancing your existing auto loan. They provide customer assistance through phone calls with their Financial Service Representatives (FSR) You have to upload certain documents supporting your application. After that, they will give you options from which you have to select the one that works the best for you. You can get pre-approval for the loan without impacting your credit score.
Features
- They provide debtors with the chance to refinance their existing auto loans.
- Many different kinds of loan options are available.
- A huge network of lenders across the country is on RefiJet.
- You can check your qualification parameters and status without getting your credit score impacted.
- The low-interest rate drops the average auto loans rate monthly to $150.
Pros
- The refinanced loan has a low-interest rate.
- RefiJet has a huge network of lenders across the country.
- The process is easy and personalized.
- The qualification process does not impact your credit score.
Cons
- The application process is entirely online and doesn’t have an offline option.
- They may charge an origination fee of $395.
5. myAutoloan.com
The process of getting auto loans for older cars from myAutoloan.com is time and cost-efficient. They maintain strict confidentiality rules for every application. The process of signing up is free and simple. First, you have to fill out the form, which is going to take a few minutes. Thereafter you will be matched with four offers according to your form. Then you can take your pick among the four suggested loan structures. The interest rate is low. Not only does myAutoloan.com specialize in new and old auto loans but they also do refinancing.
Features
- The procedure is time and cost-effective.
- They have a strict policy for data privacy.
- They offer you four options to choose from.
- The interest rates are quite low.
Pros
- The process is fast and inexpensive.
- A strict policy on data privacy is followed.
- They provided four options based on your application.
Cons
- The interest rate depends on lenders.
- There are only a few options to select from.
Applying for Loans for Cars Over 10 Years Old
The procedure to apply is quite easy. You have to apply for the older car auto loan and then wait to get approved. Usually, it takes just a few minutes to get approved. If you apply at the dealership directly, the process becomes even easier.
Dealerships generally have a finance team that guides you through your options and describes them in detail so you can find out the one that matches your lifestyle. They are well connected with the lenders and banks in their area and even the entire country due to the similar nature of their business. This will facilitate you in getting the interest rate that is perfect for you.
Finally, you have to ensure that you read all the terms and conditions related to the loan carefully and decide whether it will be feasible for you. Once you’ve found the right plan and signed the papers, your desired old car is actually yours.
Top Things to Consider Before Taking an Auto Loan for Older Cars
Sure, financing your old car is an easy process and has been around for a long time. However, there are still some essential pointers to keep in mind. Here’s a list of them:
Down Payments
Now, there are advantages to having both a large down payment amount and a small down payment amount.
If you put down a large down payment, say 10% of the car’s price, you will owe a lot less money. It will be easier for you to get approved as you are seeking auto loans for older cars with a small loan amount.
If you pay a low down payment, you will have extra money which you can use to repay your loan later. It is your decision to choose the one that works better for you.
Credit Score
Well, the age of the car isn’t a very important factor when it comes to getting approved for an auto loan. If you have a good credit history, the lenders do not consider the loan to be high risk, but having a bad score surely changes things.
Having a good credit score gets you better terms and conditions which ultimately help you save money. There is nothing to worry about if you have bad credit, just prioritize applying for your loan through a well-connected dealership so they provide you with good benefits when you finance older car.
Co-Signer
A co-signer is usually a spouse or a parent who will be responsible for repaying the loan in case you fail to. It becomes much easier to get approval if your co-signer has a good credit score. You can even expect the interest rates to be lower.
Used Car Buying Fees
Some charges are levied when buying an old car; such as:
- Registration Fees
- Documentation Fees
- Sales Tax
There are documentation fees, but only in some states. The charges consist of the dealership staff expenses and charges of the documentation that is sent to DMV.
Can You Get an Auto Loan for Older Cars?
Definitely. Yes, there are a lot of sources to finance an old car by securing an auto loan. There are banks, credit unions, and dealerships. Most banks give auto loans for old cars below 10 years old that have been ridden for less than 100,000 miles.
However, there are credit unions and dealerships that provide auto loans for older cars through a very easy process. You are not obligated to have a good credit score as your vehicle acts as collateral for the loan.
The dealerships have a huge network of lenders and banks that help them fetch the interest rate that is perfect for you. Therefore, do not worry if you have bad credit and are hoping to apply for classic car loans. Simply follow the list of credit unions mentioned above but do not skip doing your own research.
How Old of a Used Car Will a Bank Finance?
Well, there is no limit to how old a car can be for it to be financed. Though, usually, banks do not finance cars that are older than 10 years. If you are planning to finance older car you should consider credit unions and dealerships.
The approval criteria of credit unions are low, and having a bad credit score isn’t a problem. Dealerships have huge networks of lenders and banks throughout the country which help you in getting the best interest rate.
The Navy Federal is an example of a credit union. They offer low-interest rates on your auto loans. You can get a pre-approval check before applying for the loan on their website. If you are in search of other options, you can refer to our list.
FAQs
1. Can you finance a car over 10 years old?
Yes, definitely. Most banks do not give auto loans for cars older than 10 years. However, there are credit unions and dealerships that provide loans and it is easy to get them. You don’t necessarily have to have a good credit score, your vehicle acts as collateral for the loan.
2. Does the Navy Federal finance older cars?
Yes, they are a type of credit union. They finance cars that are over 20 years old, where the car acts as collateral against the disbursed loan.
3. What is the oldest car you can finance?
There is no specific number, usually, banks do not finance cars that are older than 10 years. If you are planning to go for an old car, you should consider credit unions and dealerships. Navy Federal is a type of credit union that finances cars older than 20 years.
4. How long will a bank finance a 10-year-old vehicle?
Usually, a bank can finance a car for up to 96 months. It actually depends on you how long you want to finance an older car and pay installments. The longer the period, the higher the interest, and the shorter the financial period, the lower the rate of interest.
Conclusions
Well, now your question of “Can I obtain auto loans for older cars?” must surely be answered. Banks usually don’t finance cars that are older than 10 years and have been ridden for more than 100,00 miles. That is where credit unions and dealerships come in useful.
Credit unions charge less interest on auto loans and getting approved is easy. You don’t need to have a good credit score. Some of the credit unions mentioned above even approve loans for people having prior bankruptcy. They provide a lot of lenders as they have a huge network of lenders and dealers across the country. We have mentioned some of the best credit unions, but make sure to read all the terms and conditions mentioned on their main websites.
