Financing old cars

Buying an older car has its advantages, and the purchase process is relatively easy. As simple as it is, however, it's not unusual for drivers to have questions, especially when it comes to financing. In fact, one of the most common inquiries drivers have about buying a pre-owned vehicle is, "can you finance a car older than 10 years?"

If you've found yourself asking this question during your used car search, the answer is yes—you can finance a car older than 10 years! Here's how.

Financing a car over 10 years old is quite simple. All you need to do is apply for the loan and work out the details with the seller once you're approved.

The average vehicle on the road today is about 11 years old. With that number only expected to increase, more banks and lenders are making it easy to finance an old car. Most lending institutions will look at the following before considering a loan on a 10-year-old car:

• Overall mileage
• The amount being financed must be at least $5,000
• Your credit score.
• A current Fair Market, or Actual Cash Value appraisal of the vehicle

A Fair Market Value appraisal from an independent auto appraiser reassures the lending institution of the actual cash value of the vehicle rather than the selling price that the seller and buyer have agreed to, which might be inflated.

There are some banks out there willing to provide a loan for a 10-year-old car, but credit unions seem to be preferable if you’re looking for financing options on an older vehicle. It is usually easier to get pre-approved with a credit union and with more and more emerging, chances are good that you’ll be able to find one where you’ll be eligible for membership.

Financing a vehicle that's over a decade old is easy, but there are still aspects you should consider. That way, you can be thoroughly prepared when you're ready to apply and buy your next used car.

The age of a vehicle isn't always the most significant factor when it comes to financing a used car. While it does play a role in determining what terms may be available for you, lenders tend to put more weight on the person applying for a loan and their credit score.

Your credit score is a measure of your credit worthiness. Generally, it ranges from 300 to 850. Your score lets lenders evaluate the probability that you will repay your loan in a timely manner. It takes the following factors into account:

• Number of open accounts
• Total levels of debt
• Repayment history

Typically, those with higher scores are approved for more financing offers. However, it is possible to get financing even with bad or no credit—especially when working with a well-connected dealership. Financing a cheap used car could also be a step towards boosting your score, so you can make financing a vehicle even easier in the future.

You might need to get a co-signer when looking to finance an older car. It all depends on your individual credit score. A lender cannot require a co-signer if you qualify on your own but getting one could possibly lower the interest payments and get you more options.

A co-signer is usually a parent, spouse, or friend who will be obligated to pay back the loan just as you are. Finding one with a great credit score is beneficial for both the lender and the borrower and could be a big help in the long run.

Finding the right financing for older pre-owned vehicles can take time, depending on a few factors. Having a down payment can make it easier to get approved for a loan, regardless of the age of the car.

Making a deposit can reduce the amount you'd need to borrow from lenders. The less money you'll need to borrow, the more likely you'll be approved for a loan.

 For a Fair Market Value auto appraisal for financing, call/text: 786-853-0711