CashNews.co
The automotive business service Car.co.uk has warned motorists of an age limit that could prevent them from financing their dream set of wheels.
For many, financing is one of the most accessible ways to get a modern car, with drivers avoiding the need to pay a large sum upfront to get behind the wheel.
However, in a blog post on their website, Car.co.uk highlighted that many services will not allow drivers to finance a car that is more than a decade old.
They advised: “If you’re thinking ‘how old can a used car be to finance?’, the answer is cars of no more than 10 years of age with mileage of no more than 100,000 are about the limit for finance agreements.
“For a standard car loan, however, vehicles closer to seven years are more commonly accepted. These are lenders on the market, nonetheless, who will specialise in finance agreements for older cars.”
Whether they finance a car through hire purchase (HP) or a Personal Contract Payment (PCP), there are a number of restrictions put on drivers that will somewhat limit their choice of vehicles.
In particular, many financing companies will reject customers who are looking to buy a vehicle that is more than 10 years old since they are more likely to break down or have higher maintenance costs.
Older or higher mileage cars are also likely to be worth substantially less than more recently-built models – a key consideration for PCP financers, who often sell off the vehicle after the contract ends.
Nevertheless, Car.co.uk reassured drivers that they may be able to finance an older car in some cases, urging them to reach out to financers.
They added: “It’s always worth getting in touch with lenders when you find a vehicle oler than 10 years for which you’re seeking finance, because there may be exceptions to the rule.
“If you’ve got your heart set on a classic car, for example, or just a car that’s older than 10 years, they may be willing to work out an agreement for you.”
Some specialist companies will offer special finance deals for those looking to own a classic car, particularly models that have a collectable status.
This is because these vehicles are often much more simple to work on, with many owners able to take maintenance into their own hands, and can hold their value better than many new cars since there are only a limited number left on the roads.
Nevertheless, as with all forms of vehicle financing, drivers must be able to make sure that they will be able to keep up repayments before they apply, with some agreements being secured against their home.