With most lending companies, banks included, you will find it very hard to apply for a car loan for a vehicle over twenty years old.
You may in such a case apply for dealership finance. If you buy a new car, the value of the car will depreciate greatly over the loan term and, you will not be able to sell your car for the same amount that you bought it.
Yes, you get your classic cars and they are different because the older they get the higher their value but that’s a certain market that often has its own finance rules and options. There are other ways of getting a loan for your car and we are going to explore those here.
Are you wondering if it is possible to get a loan?
Yes, it is very possible. If the bank does not want to give you a car loan for your older vehicle you could apply for a short–term loan for the same value. Alternatively, you could also apply for a personal loan. If a bank will not offer you a car loan due to the vehicle being older than twenty years, then you can try and apply for a loan with the dealer or a specialist loan company. If you can afford to make repayments for the first six to twelve months of the year, then a short-term loan would suit you the best. The good news is that there are loans available that makes it easier for you to get a car that cannot be financed through traditional lenders.
Using a personal loan to buy a car
Did you know that you could use a personal loan to purchase of a vehicle? No? Well, you can apply for a personal loan for the value of the car that you would like to buy. As long as you make all your payments and answer all of your questions correctly you will have a very high chance of your loan being approved. If you intended to pay your loan back over a longer period than twelve months then a personal loan is for you.
You might think the interest rate is slightly high but, it simply depends on your loan term and your personal credit rating. With a personal loan, you can get up to seventy-two months to repay the loan. Seventy-two months is equal to six years! This is even longer than the typically 5 year car loan. The best part about the personal loan is that you can pay your loan amount back earlier if you are able to do so and save!
Tip for funding cars over twenty years old
There are a few companies that will offer a car loan for a car over twenty years old. Use a loan comparison site to help you find these lenders. If you do not find a suitable car loan designed for older cars, you may have to opt for a personal loan. Try to make use of dealer finance or specialist finance if your dream car is considered to be vintage.
No, you don't have to give up on your dream car no matter the age
We have been speaking about a car that is twenty years old, but the best part is if you would like to buy the car of your dreams and it is older, all you have to do is use the same ideas above to get your loan. There will always be a way for you to get the loan that you want, all you have to do is apply for a loan online today.