What is the maximum age of the car I can finance with a used car loan?

When applying for a used car loan, banks or Non-banking Financial Companies (NBFCs) usually have a maximum age limit for the car to be financed. The eligibility is based on factors like the car’s condition, resale value, and the lender’s specific policies.

• Typically, most loan providers finance used cars up to 8-10 years old. However, there is no set maximum age - it depends on the financial institution policies.
• Generally, the maximum age at which a used car can be financed relates to the loan term. Many financial institutions will not approve loans longer than 5 years for vehicles older than 5-6 years old.
• Most loan providers set maximum mileage limits rather than maximum age limits. Typically, loan providers cap financing at around 100,000-150,000 miles. A higher mileage equates to less remaining life expectancy.
• The actual age a loan provider will finance often depends on the overall condition and value of the vehicle. An older but well-maintained car in good shape stands a better chance than a neglected 10-year-old model.
• Generally, more flexible loan providers like banks, NBFCs, and credit unions can finance older vehicles than specialised auto finance companies. Credit history also plays a role.
• While less common, it is possible to get financing for vehicles up to 20 years old in some cases. This usually requires a large down payment, a short 1-2 year loan term, and excellent credit.