Can you get car finance on an older car?

Can you get car finance for older cars?

Many people assume that buying a car on finance means getting a flashy, new vehicle straight off the production line. That can be the case. But what about older, used models? Can you finance an old car if you need to? Delve into our guide below to find out the answer to this question, and a few more worth knowing.

What qualifies as an 'older car'?

So, what are we actually talking about when we say finance for 'older cars'? It can be anything from modern, used cars to classic and vintage vehicles. We'd break these down into the following categories:

• Used cars: this can range from nearly new vehicles, with only a few hundred miles on the clock, to 15 or even 20-year-old cars with high mileage. Used cars make up the majority of car sales in the UK. 
• Classic cars: these vehicles tend to be at least 20 years old, and often have special appeal due to their reputation, design or collectability. What counts as a classic car is open for debate, but they're generally desirable models that aren't made any more.
• Vintage cars: anything older than around 40 years qualifies for an MOT and vehicle tax exemption. These are widely considered 'antique' cars. Technically, vintage cars have to be built between 1919 and 1930. But for the everyday motorist, vintage and antique can be used interchangeably.

If you can't afford to buy a model from any of the above categories outright with cash, you'll probably turn to some sort of finance agreement.

Can you finance old cars?

The short answer is yes, in most cases, although it often comes down to the vehicle you're trying to buy, where you're buying it from and the finance provider you're dealing with.

Generally speaking, there's no maximum age limit for car finance across the industry. Different lenders will have their own acceptance criteria when it comes to finance deals, including factors like: 

• Vehicle age 
• Total mileage ⛽
• Overall condition 
• Expected resale value 💰

Certain types of car finance are more likely to be approved for older cars than others. 

Old vehicle finance options

Different types of lenders offer different products that may or may not suit your purchase. Banks, dealerships, specialist car finance providers - finding the right option can help make buying an older car simpler.

• Hire Purchase (HP): this is often the simplest car finance option for both newer and older used vehicles - particularly if you're buying from a trusted dealership. Hire Purchase means you pay off the car in set monthly instalments. Once you've made your final payment, the car is legally yours. This type of finance is usually offered by dealerships directly and specialist providers like us.
• Personal loans: a personal loan from a bank or another type of lender gives you more freedom when it comes to what you're buying. Where traditional finance isn't an option, you could use the money as an old vehicle loan to buy something unique or rare.
• Classic and vintage car loans: some providers specialise in vintage and classic car financing. Enthusiasts may want to choose this option for the flexible terms and specialist market knowledge offered by these companies. 
• Personal Contract Purchase (PCP): this is one of the most popular car finance options for new and nearly new vehicles, but PCP is less common than HP for older cars. Dealerships tend to have strict age and mileage limits for PCP deals that exclude many older vehicles.

"When it comes to financing older vehicles, it's not a one-size-fits-all scenario. Options like Hire Purchase or personal loans often work better than PCP for higher-mileage or classic models because they're less reliant on the car's future resale value. The key is matching the finance type to the age and condition of the vehicle - that's how you make affordability and value go hand in hand."

- Jonathan, Head of Sales and Marketing at First Response Finance

Pros and cons of car finance for older cars

Pros ✅

Spread the cost: if buying a used car outright is out of reach for you, car finance for older cars can help you get the keys sooner rather than later.

Lower purchase price: older cars with higher mileage usually have a lower purchase price. Monthly car finance payments could be more affordable for these compared to newer models.

Slower depreciation: most used cars more than a few years old have already gone through the sharpest depreciation phase. They'll hold their value better than new cars.

Cons ❌

Pay more with interest: as with most cars bought on finance, you'll end up repaying more than the vehicle value because of interest charges.

Potential maintenance costs: older cars may need more repairs and more consistent maintenance compared to newer vehicles. Alongside your finance repayments, this could strain your budget.

Limited warranty protection: unlike a newer car on finance, you may not have the same warranty cover with an older vehicle. This means you could be financially responsible for unexpected repairs straight after purchase.

Quickfire FAQs about finance for older cars

What are your car finance criteria at First Response Finance? 

We're flexible on things like the age of your car, so we have no trouble providing car finance for an older vehicle. We do have some fixed criteria, though:

• You must buy the car from an FCA authorised dealership
• The maximum mileage for a petrol car is 120,000
• The maximum mileage for a diesel car is 160,000

How old can a car be for PCP?

Different car finance providers have different rules surrounding PCP car deals. But most cars need to be under four years old at the start of the contract, and no more than seven years old at the end.

What's the maximum age limit for car finance?

There isn't one! Some dealerships and car finance providers may have their own acceptance criteria relating to vehicle age, but there's no set maximum age limit.

How do I find old car finance deals online?

It's best to find the used car you want to buy and then explore your old vehicle finance options from there. You may want to see what the dealership offers directly or go to a specialist car finance provider to get the money you need.

Looking to buy an older, used car on finance? At First Response Finance, we offer HP car finance loans from £2,000 to £15,000 for terms between 18 and 61 months - and we're flexible on factors like vehicle age. Get a quote.

We're incredibly proud to be rated 'exceptional' on Feefo, and to be recommended by 98% of our customers. We've also been voted Best Car Finance Provider four years in a row at the Consumer Credit Awards.