How to Get a Loan for a Car That’s Over 15 Years Old

Introduction: Can You Finance a Car That’s Over 15 Years Old?

If you’re looking to buy a car that’s more than 15 years old, you might struggle to find a lender willing to finance it. Many lenders cap vehicle age at 10-12 years, but some credit unions, online lenders, and private financiers offer loans for older vehicles under specific conditions.

✔ Yes, you can finance a car over 15 years old, but expect higher interest rates and shorter loan terms.
✔ Major banks don’t finance vehicles over 15 years old, so you’ll need to look at specialist lenders.
✔ A larger deposit (20-30%) and strong financial standing improve approval chances.

This guide explains how to finance a car older than 15 years, which lenders to approach, and how to increase your approval chances.

1. Why Do Most Lenders Avoid Financing Cars Over 15 Years Old?

📌 Lenders consider older cars risky because:

✔ Resale Value Declines Rapidly – If the borrower defaults, older cars are harder to sell at a high price.
✔ Mechanical Issues & Maintenance Costs – Lenders worry that high repair costs could lead to financial struggles for borrowers.
✔ Limited Market for Older Vehicles – Not all lenders accept vehicles that don’t meet modern emissions or safety standards.

🚫 Lender restrictions for older vehicles:
❌ Loan terms usually capped at 1-3 years for cars over 15 years old.
❌ Secured loans may not be available, requiring an unsecured loan instead.
❌ Higher interest rates due to increased risk.

💡 Tip: Choose a car with a stable resale value and a full-service history to improve lender confidence.

2. Which Lenders Offer Finance for Cars Over 15 Years Old?

📌 Lender policies for older car financing:

✔ For the best rates, try credit unions or online lenders that specialize in older vehicle loans.
✔ Private lenders offer more flexibility but at a higher interest rate.

💡 Tip: Some lenders require independent valuations for older vehicles before approving finance.

3. How to Improve Your Chances of Getting a Loan for a 15+ Year-Old Car

📌 Steps to secure financing:

✔ Provide a larger deposit (20-30%) – Reduces lender risk.
✔ Ensure the car is roadworthy and well-maintained – Lenders are more likely to approve vehicles in good condition.
✔ Consider an unsecured personal loan – If a secured car loan isn’t an option, unsecured loans may work.
✔ Improve your credit score – A strong financial record improves approval odds.
✔ Opt for a shorter loan term (1-3 years) – Lenders prefer shorter repayment periods for older vehicles.

💡 Tip: Some lenders will approve loans for classic or collector cars over 15 years old if they have a high retained value.

4. What Interest Rates Can You Expect for a Car Over 15 Years Old?

📌 Interest rates for older vehicles vary based on risk factors:

✔ Shorter loan terms and higher interest rates are common for older vehicles.
✔ If possible, save for a larger deposit to lower borrowing costs.

💡 Tip: Compare lenders to find the best rates for older car loans.

5. Alternatives to Traditional Car Loans for Older Vehicles

📌 If lenders won’t approve your loan, consider these alternatives:

✔ If you’re struggling to get approval, consider a co-signed loan or rent-to-own financing.

Final Thoughts: Can You Get a Loan for a Car Over 15 Years Old?

✔ Yes, financing is possible, but options are more limited than for newer cars.
✔ Expect higher interest rates and shorter loan terms.
✔ Credit unions, online lenders, and private lenders are the best sources for older car financing.
✔ A stable job, higher deposit, and strong credit score will increase approval chances.

💡 Want to compare lenders for older car finance? Get expert advice 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.