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Financing a 10-Year-Old Car: What Are My Options?

Financing a 10-Year-Old Car: What Are My Options?
Sulaiman Abdur-Rahman
Sulaiman Abdur-RahmanUpdated May 3, 2022
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Banks, credit unions, and private lenders may be willing to finance a 10-year-old car. Some financial institutions offer financing and auto loan refinancing on used car models older than 10. Consumers who need financing to buy a 10-year-old car have a variety of options to choose from.Auto loan borrowers can also refinance their existing debt on a 10-year-old car. Refinancing pays off the original loan agreement and replaces it with new loan terms. Below we highlight how some banks and private lenders may offer financing on decade-old used cars. 

Refinancing a Car That Is 10 Years Old

Auto loan borrowers can refinance a car that is 10 years old. Banks, credit unions, and private lenders may have certain requirements that a borrower and used vehicle must meet to qualify for an auto refinance loan.Creditworthy borrowers with a 10-year-old car financed by an existing auto loan may qualify for auto loan refinancing. Some lenders may require the payoff amount on your current auto loan to be at least $7,500 to be considered for refinancing. Private lenders may offer auto loan refinancing on 10-year-old vehicles that have less than 125,000 miles on the odometer. Lenders generally have minimum eligibility requirements for refinancing, and some lenders may offer auto refinance loans on vehicles older than 10, including classic or antique cars older than 20.Refinancing may help you lower your auto loan interest rate or lower your monthly payment. Lenders may originate or service auto refinance loans as a risk-based business decision.Banks, in particular, are for-profit companies that make money by selling loans and charging interest. Lenders may refinance a 10-year-old car if they determine it’s worth the risk. The pros and cons of refinancing a car are something you may consider when evaluating whether to seek an auto refinance loan.The cost to refinance a car may include a number of fees that can be a dealbreaker for some consumers. Refinancing can help borrowers get a lower monthly payment burden, but refinancing may also cause a borrower’s credit score to dip from a hard pull credit check.

Will Banks Finance a 10-Year-Old Car? 

Some banks may finance a 10-year-old car. Bank of America, for example, may offer financing on used cars not older than 10 calendar years with less than 125,000 miles traveled. Other commercial banks may have similar requirements for financing or refinancing used vehicles.Every bank can set its own eligibility requirements, but it’s clear that commercial banks in the United States are willing to finance high-mileage used car models. Banks may be less willing to finance used vehicles older than 10, but some banks are willing to take on that risk.

Will Private Lenders Finance a 10-Year-Old Car?

Private lenders may finance a 10-year-old car. Internet-based financing marketplaces, for example, may help you find financing to buy used vehicles 10 years of age or newer. These lenders may require the used vehicle to have less than 125,000 miles on the odometer.The way how car loans work is that lenders give borrowers financing for the purpose of buying a motor vehicle. In addition to online lenders, private lenders can also include friends or family members who may lend you money for buying a car.

What Is the Oldest Car That I Can Finance?

Some lenders are willing to finance antique or classic cars older than 20 years old. A private party auto loan can provide you with financing to buy a used vehicle from a private person selling a car. Banks, credit unions, or nonbank financial institutions may offer these loans.

Things a Lender Looks for When Financing a 10-Year-Old Car

Here are some things a lender looks for when financing a 10-year-old car:

Age of Car

Auto loan lenders may consider the age of the car when deciding whether to approve financing for it. Some lenders may offer financing on used vehicles up to 10 years old. Certain lenders, including some credit unions, may offer financing on vehicles more than 10 years old, including classic and antique cars over 20 years old.

Mileage

Auto loan lenders may consider the current mileage on the car when deciding whether to approve financing for it. Some lenders may offer financing on used vehicles with less than 125,000 miles on the odometer.

Minimum and Maximum Loan

Some lenders may offer car loan financing options ranging from $7,500 to $150,000 on used vehicles. Lenders within these ranges may provide borrowers with a loan amount equal to 100% of the vehicle’s National Automobile Dealers Association (NADA) retail value.Some lenders may offer loan amounts exceeding 100% of the vehicle’s listed NADA retail value. For vintage car collectors, private lenders may offer financing up to $800,000 on classic cars.

Where Can You Get a Loan for a Car Older than 10 Years?

Here are some options of where you can get a car loan on a vehicle older than 10:

Private Lenders

Private lenders may offer financing on vehicles older than 10. Some private lenders, for example, specialize in collector car financing. Lenders of classic car loans may provide financing up to $800,000 on antique vehicles manufactured over 100 years ago.

Banks

Banks may offer financing on older used cars with more than 100,000 miles. Such banks may also offer financing on classic vehicles manufactured decades ago. Every bank can set its own eligibility criteria, but some banks are willing to offer financing on vehicles of any age.

Credit Unions

Credit unions may offer financing on older used cars up to 12 years old. Some credit unions may offer classic car loans on vehicles aged 20 and older.

Financing 10-Year-Old Car Requirements

Lenders may set the following requirements when financing a 10-year-old car:

Credit Score

Some of the major credit scoring models, including VantageScore® 4.0 and base FICO® Scores, range from 300 to 850. Some lenders may require that borrowers have base FICO Scores of 575 or greater to qualify for financing on a 10-year-old used car.Financing data from Experian show that deep subprime borrowers with credit scores between 300 and 500 received used car loan financing in the fourth quarter of 2021. This shows that consumers with bad credit may qualify for used auto loan financing, but consumers with good credit may qualify for better rates of interest.Lenders typically offer better auto loan interest rates when financing new vehicles compared with used vehicles. The average rate stood at 3.86% for new vehicles and 8.21% for used vehicles in the fourth quarter of 2021, according to Experian.Borrowers who improve their credit scores may qualify for better rates with an auto refinance loan. Borrowers can refinance auto loans almost immediately. In terms of when to refinance an auto loan, the right time for you to refinance may be whenever you can secure a lower interest rate or whenever you need a lower monthly payment.

Cosigner

Consumers with bad credit or no credit may need a cosigner to qualify for financing on a 10-year-old used car. A cosigner accepts liability and agrees to make any necessary payments if the borrower defaults on the loan.Lenders may offer secured and unsecured auto loans. A secured car loan uses the financed vehicle as collateral, whereas unsecured car loans have no collateral requirement. Lenders may repossess your vehicle if you default on a secured auto loan.

Down Payment

Consumers in some cases may be required to make a down payment to qualify for financing on a 10-year-old used car. Some lenders may require consumers with bad credit or no credit to make a minimum down payment equal to 10% of the vehicle’s purchase price.  

Fees

Some lenders may require borrowers to pay origination and documentation fees to secure financing on a 10-year-old used car. An origination fee is an administrative fee that some lenders may charge for processing your loan application. Some lenders may also require borrowers to pay a prepayment penalty fee if they pay off their auto loans early.

The Takeaway

Car loans may provide you with financing to buy new or used vehicles. A 10-year-old vehicle with an existing car loan may qualify for refinancing if the vehicle is in relatively good condition.Lantern by SoFi can help consumers find top lenders that refinance an auto loan. Refinancing can replace your existing loan agreement with new terms that may lower your monthly payment.Check your rate today and see if you prequalify.
Photo credit: iStock/Dean Mitchell
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Frequently Asked Questions

Can you refinance a 10-year-old car?
Do private lenders refinance 10-year-old cars?
Do banks refinance 10-year-old cars?

About the Author

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman

Sulaiman Abdur-Rahman writes about personal loans, auto loans, student loans, and other personal finance topics for Lantern. He’s the recipient of more than 10 journalism awards and currently serves as a New Jersey Society of Professional Journalists board member. An alumnus of the Philadelphia-based Temple University, Abdur-Rahman is a strong advocate of the First Amendment and freedom of speech.
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