Introduction: Is It Possible to Finance a Car Over 10 Years Old?
If you're looking to finance a car that’s more than 10 years old, you may find that some lenders have strict age limits on vehicle financing. While financing a brand-new car is straightforward, getting a loan for an older vehicle comes with additional conditions.
✔ Yes, some lenders offer finance for cars older than 10 years, but approval depends on the lender’s policies, the car’s value, and your financial situation.
✔ Interest rates may be higher for older cars, as lenders view them as higher-risk assets.
✔ A larger deposit or a shorter loan term may be required to offset the risks associated with financing an older vehicle.
This guide explains how to finance a car older than 10 years, which lenders accept these applications, and how to improve your chances of approval.
1. Why Do Lenders Restrict Finance for Cars Over 10 Years Old?
📌 Lenders are cautious about older car loans because:
✔ Resale Value Concerns – Older cars depreciate faster, making them harder to resell if repossessed.
✔ Higher Maintenance Costs – Vehicles older than 10 years may have higher repair expenses, increasing the borrower’s financial burden.
✔ Shorter Loan Terms – Lenders prefer loan terms that match the remaining lifespan of the car.
🚫 Common lender restrictions include:
❌ Maximum vehicle age at loan maturity – Some lenders require the car to be no older than 15 years by the time the loan is fully repaid.
❌ Higher interest rates – Lenders may charge higher rates for older cars due to increased risk.
❌ Lower borrowing limits – Some lenders cap the loan amount based on the car’s age and value.
💡 Tip: Some lenders will still approve a loan if the car is well-maintained, has a service history, and holds its value well.
2. Which Lenders Offer Car Loans for Vehicles Over 10 Years Old?
📌 Lender policies on financing older cars:
| Lender Type | Maximum Car Age Allowed | Best For |
|---|---|---|
| Major Banks (ANZ, CBA, NAB, Westpac) | ❌ 7-10 years max | PR holders, new cars only |
| Credit Unions (Beyond Bank, CUA, Bank Australia) | ✅ 12-15 years | Skilled workers, PR applicants |
| Online Lenders (Plenti, MoneyMe, Now Finance) | ✅ 15+ years | Temporary visa holders, fast approvals |
| Private Lenders | ✅ No age limit, but higher interest | High-risk applicants, older classic cars |
✔ For the best interest rates, credit unions and online lenders are your best bet.
✔ Private lenders may approve older car loans but expect higher interest rates.
💡 Tip: Some classic or collectible cars over 10 years old may qualify for specialty financing.
3. How to Get Approved for a Car Loan for a Vehicle Over 10 Years Old
📌 Steps to improve approval chances:
✔ Choose a lender that specializes in older cars – Online lenders and credit unions are more flexible.
✔ Provide a larger deposit – A 20-30% deposit can make lenders more willing to approve your loan.
✔ Show proof of regular servicing and vehicle history – Well-maintained older cars hold their value better.
✔ Consider a shorter loan term – Lenders prefer shorter repayment periods for older vehicles.
✔ Improve your credit score – A strong credit history increases approval chances and lowers interest rates.
💡 Tip: If your car is listed in Redbook or has a stable market value, lenders may be more willing to approve financing.
4. Interest Rates for Car Loans on Vehicles Over 10 Years Old
📌 Interest rates depend on vehicle age, lender risk assessment, and your financial profile:
| Car Age | Typical Interest Rate | Loan Term Available |
|---|---|---|
| 0-5 years old | ✅ 5-7% | ✅ 3-7 years |
| 6-10 years old | ✅ 6-10% | ✅ 3-5 years |
| 11-15 years old | ⚠️ 9-15% | ⚠️ 1-3 years |
| 15+ years old | ❌ 15-25% | ❌ 1-2 years max |
✔ Older cars typically attract higher interest rates due to higher risk.
✔ Loan terms are shorter for older vehicles, often capped at 3 years.
💡 Tip: Opt for a secured loan (if available) to get a lower interest rate on an older car.
5. Alternative Financing Options for Older Vehicles
📌 If you can’t secure traditional car finance, consider these alternatives:
| Option | Best For | Key Considerations |
|---|---|---|
| Personal Loan | Cars over 15 years old | May have higher interest rates |
| Rent-to-Own Car Programs | Temporary visa holders, high-risk borrowers | Higher long-term costs than financing |
| Novated Lease (if employer offers it) | Skilled workers, PR applicants | Limited to employer-approved cars |
| Co-Signed Loan with a PR or Citizen | Visa holders with limited credit history | Must have a reliable guarantor |
✔ If lenders reject your application, a personal loan or rent-to-own program may be a good alternative.
6. Should You Buy an Older Car with Finance?
✔ Pros of financing an older car:
- Lower purchase price compared to new vehicles.
- More affordable insurance and registration costs.
- Easier to pay off in a shorter period.
🚫 Cons of financing an older car:
- Higher interest rates compared to new car loans.
- Shorter loan terms = higher monthly repayments.
- Potential for higher maintenance and repair costs.
💡 Tip: Before applying for finance, get a pre-purchase inspection to ensure the car is in good condition.
Final Thoughts: Can You Get a Loan for a Car Over 10 Years Old?
✔ Yes, financing is possible for older cars, but options may be limited depending on the lender.
✔ Credit unions, online lenders, and private lenders are the best sources for loans on older cars.
✔ Expect higher interest rates and shorter loan terms when financing a vehicle older than 10 years.
✔ Providing a higher deposit, securing a stable job, and maintaining a strong credit score can improve approval chances.
💡 Want to find the best car finance options for older vehicles? Compare lenders today at FinanceTheRide.com.au! 🚗💨
DISCLAIMER
The information provided on this website is general in nature only and has been prepared without considering your financial needs, circumstances and objectives and should NOT be construed as financial, taxation or legal advice. For more information, get in touch with our experienced partner brokers today.
