Personal Finance

financing for older vehicles

  • Last Updated:
  • May 17th, 2020 5:04 pm
[OP]
Sr. Member
Feb 25, 2009
566 posts
69 upvotes

financing for older vehicles

Is it possible to finance an older vehicle? I know the big banks usually limit the age to 5-7 model years or so. I'm interested in a 2011 model year car and am wondering if there's options besides a personal loan or a LOC.

Thanks!
9 replies
Deal Addict
Jun 12, 2008
1143 posts
614 upvotes
Ripley
Because this is personal finance on RFD - if you can't save up to buy an 9 year old car should you be buying a car? We buy older cars but we also pay cash. You would have a loan on an asset that isn't worth what you owe.
Deal Addict
Nov 8, 2017
1519 posts
845 upvotes
The monthly payments would be like 24. 35 over 8 years with 250 down
Member
Oct 12, 2005
417 posts
353 upvotes
Lower Mainland BC
Check with credit unions. They are often less restrictive and apparently are currently offering rates ~4.5-5% for a fixed rate auto loan for people with good credit.
Sr. Member
Feb 18, 2019
507 posts
659 upvotes
If you're looking at a 2011 vehicle you should probably be paying cash. That said, you're best financing might be a balance transfer on a credit card. As in, buy car on one credit card, and BT the balance to another. You can do this a few times while you pay it off while paying less interest than most banks will give you on a car loan. If you go this route, be responsible. Otherwise you'll end up owing a car on a credit card which is less than ideal.
[OP]
Sr. Member
Feb 25, 2009
566 posts
69 upvotes
DonkeyDoo wrote: If you're looking at a 2011 vehicle you should probably be paying cash. That said, you're best financing might be a balance transfer on a credit card. As in, buy car on one credit card, and BT the balance to another. You can do this a few times while you pay it off while paying less interest than most banks will give you on a car loan. If you go this route, be responsible. Otherwise you'll end up owing a car on a credit card which is less than ideal.
Yeah that's what I'm thinking.

For the past six years I've leased new cars but we recently moved and went down to one car from two. We drive very little so I can't justify spending a ton of money on a car but as a car enthusiast I also don't want an appliance. Found a somewhat special, unique car that is still worth a decent amount of money and just don't have the cash on hand right now to buy it outright. The goal would be to pay it off as quickly as possible, as I've done with previous used cars that I've bought. I've never seen a car loan through to the end of the term.
Deal Fanatic
Apr 16, 2007
7960 posts
3246 upvotes
Financial District B…
Ray Oliver wrote: Yeah that's what I'm thinking.

For the past six years I've leased new cars but we recently moved and went down to one car from two. We drive very little so I can't justify spending a ton of money on a car but as a car enthusiast I also don't want an appliance. Found a somewhat special, unique car that is still worth a decent amount of money and just don't have the cash on hand right now to buy it outright. The goal would be to pay it off as quickly as possible, as I've done with previous used cars that I've bought. I've never seen a car loan through to the end of the term.
You would have to apply for a personal loan or LOC or HELOC for older cars that don't qualify within a banks property security guidelines.
Auto loan is actually a credit product and while some will finance cars as old as 7 years many try to avoid it. If they do they will cap them at very short terms.
Some 3rd party lenders out there may help but expect high rates

We had a guy finance a 1960's something Corvette a few years ago in the $20k range. He too had to apply for a personal loan for that.
There's no such thing as book values that can be used as finance security guides for these older vehicles. They become more-so personal values and no bank can or will secure loans on property based on the buyers opinion or personal feelings.
----------------------------Licensed Credit Bureau member, S1, FI Automotive, CCP forums most banned = x 13 and counting, guess who that is?... stomped to the curb once again
Deal Fanatic
User avatar
Aug 24, 2016
7905 posts
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The Prairies
zeddy wrote: You would have a loan on an asset that isn't worth what you owe.
That is the case with even new vehicles.
A vehicle period, is a depreciating asset.
Deal Fanatic
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Aug 24, 2016
7905 posts
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The Prairies
ejohan wrote: Check with credit unions. They are often less restrictive and apparently are currently offering rates ~4.5-5% for a fixed rate auto loan for people with good credit.
I doubt this rate will be available for a 9 year old vehicle, depending on the mileage etc...
Normally older, higher mileage vehicles come with higher rates because they’re a riskier loan.
Jr. Member
Aug 2, 2011
117 posts
54 upvotes
Vancouver
I echo what the above posters have said. You're probably best off with a personal LOC from a bank, or a balance transfer promo CC.

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