Fast Info About Financing Older Used Automobiles
- Financing choices for older, high-mileage automobiles have expanded, with many banks and credit score unions providing loans for autos 10-15 years outdated.
- The common age of automobiles on U.S. roads is 12.8 years, as excessive costs push extra patrons towards older used autos.
- Credit score unions sometimes present decrease rates of interest and extra versatile phrases for older automotive loans than conventional banks.
As the typical lifespan of automobiles steadily will increase, extra personal sellers and a few dealerships are providing autos made greater than a decade in the past. If the situation of an older mannequin is nice and it meets your wants and funds, will securing a mortgage be potential? Learn on to find out about getting an auto mortgage for an older used automotive that also has some good years remaining.
- Loans for Older Used Automobiles With Excessive Mileage
- Common Age of Automobiles
- Older Used Automotive Market
- Financing for Excessive-Mileage Autos
- Credit score Unions vs. Banks
Auto Loans for Older Automobiles With Excessive Mileage
Some lenders have turn into extra lenient with their loans for older automobiles. This shift doesn’t imply you’ll routinely qualify for hundreds of {dollars} for a automotive mortgage when attempting to finance an older car. However it’s a lot simpler to search out financing for a new-to-you automotive that’s quite a lot of years outdated.
Some banks, together with Santander, and most credit score unions will contemplate loans on older used autos.
Bruce Jackson, head of the Santander US Auto Enterprise and CEO of Santander Shopper USA, stated the corporate “is all the time trying to provide aggressive auto mortgage charges on used automobiles for our qualifying prospects.”
He added, “In at the moment’s market, the place used automobiles are extra plentiful than new autos, financing older fashions is a necessity that we’re blissful to offer and have supplied for years to satisfy the wants of our prospects. This contains providing financing for used autos as much as 10 mannequin years of age, in accordance with our normal automobile coverage.”
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What Is the Common Age of a Automotive?
The common age of autos within the U.S. continues to climb. In keeping with automotive knowledge from a current research from S&P World, the common age of automobiles on the highway is 12.8 years outdated, the very best ever recorded, and about two months older than final yr’s common.
The reliability of automobiles at the moment is barely a portion of the explanation we see folks driving older autos. New and used automotive costs have eased off their pandemic-era peaks however stay excessive. If sticker shock didn’t deliver sufficient discouragement, elevated rates of interest have stored many drivers of their present autos for so long as potential. The group of patrons who sometimes store for late-model used automobiles now might contemplate older used autos.
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What Is Impacting the Marketplace for Older Automobiles?
The optimistic spin on the difficulty is that enhancements in high quality throughout the automotive business imply carmakers are manufacturing extra dependable automobiles that keep on the highway longer. Whereas that has contributed to the longevity of autos at the moment, different causes aren’t as upbeat. The shortage of inexpensive choices and restricted availability generally forces folks to maintain what they’ve for longer.
MORE: Shopping for Used vs. Licensed Pre-Owned Autos
Sluggish Gross sales Tempo, Restricted Choice
The auto business suffered through the COVID-19 pandemic. Fewer automobiles had been produced, which elevated demand and decreased provide. With the present 43-day provide in June 2025, used stock ranges stay beneath historic norms, however the tempo of gross sales has stayed comparatively gradual amidst an unsure economic system.
Costs are down from 2022 highs, however the common asking value for used automobiles continues to be round $25,500. There’s a small provide of older, higher-mileage used automobiles for beneath $15,000. On common, sellers at the moment have only a 31-day provide of these.
MORE: Learn how to Purchase a Automotive From Out of State
Financing for Excessive-Mileage Automobiles
Financing a high-mileage automotive isn’t a trouble prefer it was once. Lenders are open to financing older automobiles since they have an inclination to face up to the checks of time. Whereas financing could also be out there by way of a dealership, native financial institution, or credit score union, it’s finest to know what you’ll be able to afford and store round for the perfect rate of interest. Use our automotive calculators to crunch the numbers to see how a lot you’ll be able to afford to pay for a used automobile.
You will need to go searching for a mortgage that works for the automobile you want. For instance, my native credit score union funds used automobiles as much as 15 years outdated, however the automobile should have lower than 100,000 miles. The most important financial institution I take advantage of restricts automobile age to 10 years however permits as much as 125,000 miles on the odometer. One other well-known nationwide financial institution limits automobile eligibility to these 15 years or youthful with fewer than 120,000 miles.
Want a mortgage for a automotive older than that? Some specialty lenders will make loans for 20-year-old autos if the mileage is beneath 150,000.
Used Automotive Mortgage Charges
Mortgage rates of interest for used automobiles are sometimes greater than these for brand new autos. Lenders contemplate used automobiles riskier investments — they’ve already partially depreciated, have unsure resale worth, and usually tend to have mechanical issues. To offset the chance, lenders have greater charges for used fashions. The common used automotive mortgage price at the moment is about 12% and about 7% for brand new automotive loans, in response to Experian.
The rate of interest a borrower obtains relies upon closely on their credit score rating. The next credit score rating signifies much less danger, which lenders reward with a decrease price.
| Threat section/credit score rating | Avg. used mortgage price |
| Tremendous Prime (781-850) | 6.82% |
| Prime (661-780) | 9.06% |
| Close to Prime (601-660) | 13.74% |
| Subprime (501-600) | 18.99% |
| Deep Subprime (300-500) | 21.58% |
RELATED: Hidden Finance Prices When Shopping for a Used Automotive
Credit score Union vs. Banks
Banks and credit score unions can assist you alongside your car-buying journey. In contrast to banks, credit score unions are owned by their members, not shareholders. This mannequin permits credit score unions to supply decrease rates of interest to patrons trying to finance a automobile, even an older one. In consequence, credit score unions generally is a important supply of financing for customers trying to purchase inexpensive used automobiles that match their wants.
Credit score unions and conventional banks make up the biggest lenders within the used automotive mortgage market. In keeping with Experian’s State of the Automotive Finance Market report for the primary quarter of 2025, every of those lenders granted 28% of all auto loans.
After all, a possible borrower must be a member of the credit score union that administers the mortgage. Much like conventional banks, membership is so simple as opening an account.
MORE: Learn how to Purchase a Used Automotive in 10 Steps
Backside Line on Excessive-Mileage Older Automotive Loans
Excessive costs and restricted availability of newer fashions push extra patrons to think about older used automobiles. Financing choices for older, high-mileage autos have broadened, with banks and credit score unions now extra prepared to supply loans for automobiles which can be 10, 15, and even 20 years outdated. Store round and get preapproval for the perfect mortgage phrases out there. Keep in mind to test the automobile historical past report early within the procuring course of and schedule a automotive inspection at a good auto restore store or by way of AiM Certify.
Editor’s Observe: This text has been up to date since its preliminary publication. Rick Kranz contributed to this report.
