Banks, credit unions, and private lenders may be willing to finance a 10-year-old car, but it can require some time and effort to find the right fit.
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, learn how some banks and private lenders may offer financing on decade-old used cars.
Key Points
• Financing a 10-year-old car is possible through banks, credit unions, and private lenders, each with specific criteria.
• Lenders consider the car’s age, mileage, and borrower’s credit score, often requiring less than 125,000 miles and a credit score of 661 or higher.
• Refinancing can lower interest rates and/or monthly payments, potentially saving borrowers a considerable sum over the life of the loan.
• Potential drawbacks of refinancing can include higher interest rates, fees, and temporary credit score drops.
• Borrowers with bad credit may need a cosigner or a down payment to secure financing.
Refinancing a Car That Is 10 Years Old
Auto loan borrowers can typically refinance an old car, including one 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.
Some lenders may require the payoff amount on your current auto loan to be between $3,000 and $7,500 to be considered for refinancing.
Private lenders may offer auto loan refinancing on 10-year-old vehicles that have less than 100,000 to 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 years, 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 an older car if they determine it’s worth the risk.
The pros and cons of refinancing a car are something you should consider when evaluating whether to seek an auto refinance loan. 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. Also, refinancing can involve fees that, when you do the math, could make the savings on refinancing less than you expected.
Will Banks Finance a 10-Year-Old Car?
Some banks may finance a 10-year-old car. Commercial banks may have requirements for financing or refinancing used vehicles, such as not being older than 10 years or having more than, say, 125,000 miles on it.
Every bank can set its eligibility requirements when offering to finance high-mileage used car models. Banks may be less willing to finance used vehicles older than 10 years vs. credit unions, but some are willing to take on that risk.
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Will Private Lenders Finance a 10-Year-Old Car?
Private lenders may finance a 10-year-old car. Online financing marketplaces, for example, may help you find financing to buy used vehicles 10 years of age or newer. These lenders may, like some banks, require the used vehicle to have less than 125,000 miles on the odometer.
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, whether they are banks, credit unions, or online businesses, may be 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; that means the individual selling the car could extend you a loan.
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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 100,000, 125,000, or 150,000 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 for 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 years. Some private lenders, for example, specialize in collector car financing. Lenders of classic car loans may provide financing up to $800,000 on vintage cars, such as a classic Mercedes-Benz Roadster from the 1950s, if you’re in the market for such a luxe vehicle.
Banks
Banks may offer financing on older used cars that have been driven 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 are willing to offer financing on vehicles of any age.
Credit Unions
Credit unions may offer financing on older used cars up to 10 years old and beyond. What’s more, some 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 661 or greater to qualify for financing on a 10-year-old used car.
Financing data from Experian shows that deep subprime borrowers with credit scores between 300 and 500 received used car loan financing at an average (and steep) rate of 21.55% in the third quarter of 2024 vs. a rate of 7.41% for those with a super prime rate of 781 to 850. 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.
Cosigner
Consumers with bad credit or no credit may need a loan 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. However, the cosigner does not have any claim to the car itself unless they are added to the title.
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 $1,000 or 10% of the vehicle’s purchase price, whichever is higher.
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.
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The Takeaway
Car loans may provide you with funds to finance or refinance an older car. Some banks, credit unions, and private lenders may offer this kind of funding, sometimes with requirements about the exact age and mileage of the auto. A 10-year-old vehicle with an existing car loan may qualify for refinancing if the vehicle is in relatively good condition.
If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.
FAQ
Can you refinance a 10-year-old car?
Borrowers with an existing loan on a 10-year-old vehicle may refinance their debt if they meet the eligibility criteria. Lenders may require the borrower to be creditworthy and the vehicle to have less than, say, 100,000 miles on the odometer. The outstanding balance on the borrower’s existing car loan may also have to be between such amounts as $3,000 and $7,500 to qualify for refinancing.
Do private lenders refinance 10-year-old cars?
Yes, private lenders may refinance 10-year-old cars. Online financing marketplaces, for example, may help you find financing to buy used vehicles that are no more than 10 years old. These lenders may require the used vehicle to have less than 100,000 miles on the odometer or a somewhat higher figure.
Do banks refinance 10-year-old cars?
Yes, some banks may refinance 10-year-old cars. These banks may require the payoff amount on your existing auto loan to be within a certain range. Banks may also have general car loan requirements that require borrowers to provide proof of income and identity.
Photo credit: iStock/DMP
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