Buying a reliable, older vehicle can be a smart financial move—especially in today’s market, where new car prices remain high and insurance costs rise with vehicle value. But if you’re looking to finance a car older than 10 years, you may quickly discover that most traditional banks and lenders are hesitant to approve loans for aging vehicles.
Why? Lenders view older cars as higher risk due to potential mechanical issues, depreciation, and limited resale value. However, financing a car over 10 years old is not impossible. While options are more limited, several banks, credit unions, and alternative lenders do offer financing—often with flexible terms and reasonable rates.
In this comprehensive 2025 guide, we’ll show you:
- Which banks and lenders finance older vehicles
- Why age limits exist
- How to improve your chances of approval
- Smart alternatives if traditional banks say no
Let’s dive in.
Why Most Banks Won’t Finance Cars Over 10 Years Old
Before exploring who does lend, it’s important to understand why so many banks and credit unions impose age restrictions.
Common Lender Restrictions:
- Maximum vehicle age at loan maturity: Most require the car to be no older than 10–12 years when the loan ends.
- Mileage limits: Often capped at 120,000–150,000 miles
- Loan term limits: Longer loans (72+ months) increase risk on older cars
Reasons for These Rules:
- Resale value concerns: Older cars depreciate faster and may be harder to repossess and sell.
- Mechanical reliability: High risk of major repairs during the loan term.
- Insurance and parts availability: Some insurers won’t cover older models, and repair costs can spike.
📌 Example:
Chase, Bank of America, and Capital One typically won’t finance vehicles older than 10 years or with over 125,000 miles.
Banks and Lenders That Do Finance Older Cars (2025)
While mainstream banks are strict, these banks, credit unions, and specialized lenders are more flexible when it comes to older vehicles.
1. Credit Unions (Best Option for Older Cars)
Credit unions are often more lenient than big banks because they focus on member relationships rather than strict algorithms.
Top Credit Unions That Finance Older Vehicles:
✅ Pro Tip: Smaller, local credit unions are often more willing to consider older cars—especially if you have good credit and a down payment.
2. Specialized Auto Lenders
These lenders focus on non-prime borrowers and older vehicles, making them ideal for high-mileage or aging cars.
Recommended Lenders:
- Westlake Financial
- Finances vehicles up to 15 years old
- Works with dealerships nationwide
- Accepts fair to poor credit
- Credit Acceptance Corporation
- Known for subprime lending
- Finances older used cars (up to 12–13 years)
- Higher interest rates, but accessible
- Rise Credit (Online Lender)
- Offers installment loans for older car purchases
- Loans up to $5,000–$15,000 (varies by state/province)
- Good for private-party purchases
3. Community Banks & Regional Lenders
Smaller banks often have more flexible underwriting than national chains.
Examples:
- Bank of the West (now part of BMO)
- Will consider vehicles up to 12 years old on a case-by-case basis
- Citizens Bank
- Some branches approve loans for 11–12 year-old cars with low mileage
- Local Community Banks
- Especially in rural areas, may finance older trucks or reliable models (e.g., Toyota Corolla, Honda Civic)
💬 Real-World Insight: A borrower in Ohio secured a loan for a 2008 Toyota Camry (17 years old) through a local credit union by offering a 30% down payment and strong credit history.
4. Canada: Lenders That Finance Older Cars
Canadian lenders tend to be slightly more flexible, especially with durable Japanese models.
Top Options:
- Alterna Bank
- Finances used cars up to 13 years old
- Competitive rates for members
- Peoples Trust Company
- Offers auto loans for vehicles up to 12 years old
- Available through select dealers
- Go Auto Credit (Alberta-based, national reach)
- Specializes in older and high-mileage vehicles
- Works with all credit types
- Provincial Credit Unions (e.g., Vancity, Desjardins)
- Often more flexible than big banks like RBC or TD
How to Improve Your Chances of Financing an Older Car
Even if your dream car is 12, 15, or even 18 years old, you can increase approval odds with these strategies:
✅ 1. Make a Larger Down Payment (20–50%)
Reduces lender risk and shows commitment.
✅ 2. Have Strong Credit (660+ FICO in USA, 650+ in Canada)
Better credit = more trust from lenders.
✅ 3. Provide a Vehicle History Report
Use Carfax or AutoCheck to prove low mileage and clean maintenance.
✅ 4. Get a Co-Signer
A co-signer with good credit improves approval odds significantly.
✅ 5. Choose Reliable, Long-Lasting Models
Lenders are more likely to finance:
- Toyota Camry, Corolla, Prius
- Honda Civic, Accord
- Subaru Outback, Forester
- Ford F-150 (well-maintained)
Avoid rare, luxury, or discontinued models.
Alternatives If Banks Say No
If traditional financing falls through, consider these realistic alternatives:
1. Personal Loan from a Bank or Online Lender
- Use funds to buy the car outright
- No vehicle age restrictions
- Fixed rates and terms (3–7 years)
- Lenders: SoFi, Upgrade, Discover, Marcus, Oportun
2. 48-Month Rule (Buyer-Friendly Approach)
Some lenders use the “age + loan term ≤ 10” rule.
Example: A 12-year-old car may qualify for a 24- or 36-month loan (12 + 3 = 15 → too high), but a 24-month term may be approved.
3. Seller Financing (Private Party)
Work directly with the seller to create a payment plan.
Use a promissory note and bill of sale for legal protection.
4. Save and Pay Cash
Sometimes the smartest move. Older cars are affordable—many under $8,000.
Final Thoughts: Yes, You Can Finance an Older Car
While most major banks won’t finance cars older than 10 years, you’re not out of options. Credit unions, regional banks, and specialized lenders often approve loans for well-maintained, reliable vehicles—even those 12 to 15 years old.
The key is preparation:
- Improve your credit
- Save for a strong down payment
- Target lenders with flexible policies
- Focus on proven, long-lasting models
With the right approach, you can drive away in a dependable, affordable car—without needing a brand-new price tag.
Ready to Finance Your Older Car?
👉 Next Steps:
- Check your credit score (USA or Canada)
- Contact local credit unions and ask about older vehicle loans
- Get pre-approved for a personal or auto loan
- Inspect the car with a trusted mechanic
- Negotiate with confidence
Don’t let age limits stop you. With persistence and the right lender, your next car could be just a loan away.