Older cars could be a great way to save money, especially when new car prices and running costs feel high. You might be looking at a car that is ten years old, or even older, because it fits your budget and still does what you need it to do. The good news is that you may still be able to get finance on an older car, even if you have had money problems in the past.
This guide explains how lenders look at older vehicles, what checks you should do before you buy, and how car finance bad credit could still be an option. We will also walk through practical tips to help you decide if an older car is right for you and your budget.
Can you get car finance on an older car?
Yes, it is often possible to get finance on an older car, but there are usually more rules to follow than with a newer vehicle. Every lender sets their own criteria. They may look at:
- The age of the car now
- How old the car will be at the end of the agreement
- The mileage at the start of the agreement
- The overall condition and value of the vehicle
Most lenders set limits on how old a car can be and how many miles it can have. They may also look at how old the car will be by the time you finish paying for it. This means an older car might only be offered with a shorter finance term, so it does not go past the lender’s age or mileage rules.
Some lenders who support people with poor or limited credit may still look at older cars. They just need to make sure the vehicle passes their basic checks and that the repayments fit your budget. As a direct lender, Go Car Credit reviews what you can afford now as well as your credit history. This could make finance on an older car more realistic for many people.
What counts as an “older” car?
There is no single definition of an “older” car. Some people think of anything over five years as old. Others mean cars over ten years, or with very high mileage. Lenders usually care less about the exact age and more about the risk of problems and the likely resale value.
When a lender assesses an older car, they may look at:
- Age – how many years since first registration
- Mileage – how far the car has been driven
- Service history – how well the car has been cared for
- Any previous accidents or write-offs
A ten-year-old car that has been well looked after can be a better choice than a newer car that has not been cared for. Good mileage and a full service history make a big difference. However, older cars are more likely to need repairs, and this is something both you and the lender will think about.
How lenders check older cars
When you apply for car finance, the lender will usually carry out checks on both you and the vehicle. For older cars, some of the key checks include:
- Vehicle history checks – to confirm the mileage, check for outstanding finance, and see if the car has been written off or stolen in the past.
- MOT history – to see if the car has passed recent MOT tests and if there are any worrying patterns of failures.
You can see some of this information yourself. For example, you can check the MOT history of a vehicle on GOV.UK. This can show recorded mileage at each test and any advisory notes about defects. If the mileage figures do not make sense, or the car has failed many MOTs, it may be a sign to walk away.
These checks help lenders confirm that the car is fairly priced and suitable for a finance agreement. They also give you a better idea of how reliable the car might be for the time you plan to keep it.
Age, mileage and the length of your agreement
The age and mileage of the car can affect both your chance of getting finance and the length of the agreement. Lenders try to avoid a situation where the car becomes too old or has very high mileage by the end of the term, so this often guides the length of the loan they offer.
As a general guide:
- The older the car is at the start, the shorter the term you may be offered.
- Very high mileage cars may only qualify for finance if they are from certain brands or have very strong service histories.
- If the expected value of the car at the end of the agreement is very low, lenders may be more cautious.
Some lenders may simply choose not to finance cars over a certain age at all. Others, including used car lenders, set their own limits and may be more flexible. It is always worth asking the lender or your dealer to explain any age and mileage rules in simple terms so you can decide if the car still works for you.
Car finance for older cars if you have bad credit
If you have had missed payments, defaults, or other problems in the past, you might worry that an older car and bad credit together will mean an automatic “no”. That is not always the case.
Providers of bad credit car finance may still look at older cars if they pass the basic checks. They focus on simple things, such as:
- Your income, including regular benefits where these apply
- Your usual household costs and any other borrowing
- Whether the monthly repayments fit your budget
Lenders may also look at how stable things are for you right now. Being in the same job or living at the same address for a while can sometimes matter more than older issues on your credit file.
Making your repayments on time could help your credit profile in the long run, but this is not guaranteed. Late or missed payments may make things harder. It is important to choose an amount and a term that you feel comfortable with from the start.
Choosing the right type of finance for an older car
Not all types of car finance are available for older cars. For example, some Personal Contract Purchase (PCP) products have strict rules on age and mileage, because the finance company expects to take the car back and sell it at the end.
For many older cars, Hire Purchase (HP) is a more common option. HP is a simple way to spread the cost of a used car and own it at the end, as long as you make all the payments. You can read an independent explanation in MoneyHelper’s guide to buying a car through hire purchase.
At Go Car Credit, all finance is provided through HP on used cars. You make fixed monthly repayments over an agreed term, and once all payments (and any option to purchase fee) are made, you become the legal owner of the vehicle. You can find out more on the Hire Purchase car finance page.
Is it sensible to finance a car over 10 years old?
Some finance providers will not lend on cars above a certain age. Others may still consider vehicles over ten years old, but they will usually look very closely at the risks. You should do the same.
When deciding if it makes sense for you, think about the full picture:
- How much will you pay in total over the term, including interest and fees?
- How old will the car be at the end of the agreement?
- Could you afford repair bills if something major went wrong?
- Would a slightly newer, slightly more expensive car actually work out better over the full term?
If you choose a four-year agreement on a ten-year-old car, the car will be fourteen years old by the time you finish paying for it. Older cars can still run well, but they are more likely to need repairs, and some parts may take longer to get.
A well-looked-after older car with sensible mileage can still be a good option. The key is to think about the whole picture: the price, the monthly payments, and the cost of keeping the car running. When these feel balanced, an older car can work well for many people.
Practical checks before you finance an older car
Before you sign any agreement, it is worth doing a few simple checks. These could save you money and stress later.
1. Check the vehicle’s history
Ask the dealer or seller for the service book and any invoices for past work. Look for:
- Regular servicing, ideally by a garage you recognise
- Evidence of important jobs, such as timing belt changes where needed
- Any repeated faults or warning signs
Use trusted tools to check the vehicle’s background. The MOT history on GOV.UK can show you whether the mileage looks realistic and if there are any repeated failures for the same issue.
2. Look at used car finance options
If you are focused on older vehicles, it can help to choose a lender that is already set up for used car lending. The used car finance guide from Go Car Credit explains how HP works on second-hand cars, what you might need to provide, and how the process could look from start to finish.
Reading through simple guides like this in advance may make you feel more confident when talking to dealers and lenders. It can also help you spot any deals that seem unclear or too good to be true.
3. Make sure the finance fits your budget
Older cars are not just about the monthly finance payment. You also need to think about:
- Insurance costs for the age and type of car
- Tax, fuel and other running costs
- Regular servicing and MOTs
- Money set aside for unexpected repairs
Before you agree to anything, sit down and work out how much you can realistically afford every month, including these extras. Be honest with yourself about your current commitments and any changes you expect in the near future.
Older car or newer car: which is right for you?
There is no single right answer. For some people, a low-cost older car on a shorter term could be a sensible way to stay mobile while keeping monthly payments down. For others, a slightly newer car, with a slightly higher price but lower expected repair bills, may work out better over time.
Things to weigh up include:
- How long you plan to keep the car
- How many miles you drive each year
- How important reliability is for your job or family life
- Whether you are comfortable with the risk of repairs on an older vehicle
If you have had credit problems before, it may help to speak with a lender who has experience with this. They can explain your options in clear, simple words. They can also tell you what might be possible. A responsible lender will show you the costs and check the finance is affordable before you decide.
It can also help to take your time. Ask questions and carry out a few basic checks on any older car you like. With the right vehicle and a finance plan that fits your budget, an older car may still be a practical and affordable choice.
