This was a query I used to be emailed the opposite day and I assumed it might make an important weblog put up. The emailer requested “how previous can a used car be and nonetheless get financing?”
He was asking about this as a result of he was already turned down by one other gear financing firm as a result of car’s age. He wished to finance an excellent situation 2018 work truck for 5 years, and was instructed it was too previous, which shocked him. Was 2018 actually THAT way back?
I instructed him I had dangerous information and excellent news. The dangerous information is nearly each gear financing firm on the market makes use of the very same system – they need the mortgage time period and the autos’ age (in mannequin yr) to be equal to or lower than seven years.
So proper now, within the spring of 2023, most lenders will solely allow you to finance a 2020 mannequin or later for 5 years. The 2018 mannequin talked about might solely get a three-year mortgage from one other lender (word – if the mathematics appears off by one, it’s not – we’re merely not counting the present yr twice).
Now right here’s the excellent news – Crest Capital is among the solely enterprise lenders that can take into account financing used autos with no laborious age cap. As an alternative, we’ll take a look at every used car financing deal by itself deserves, with no pre-defined age system. Within the case of the emailer, his car handed our inside standards, and we felt snug financing it for 5 years, which we did.
By their very nature, enterprise autos often age fairly quick, so the “seven years” system is just not actually out of bounds. However as a small enterprise lender, we really feel it’s a greater service to our clients to take a look at a used car financing take care of a little bit extra private contact. Many occasions, a used car three / 4 / 5 years previous continues to be a really viable car with a few years of helpful life left, and a very good worth for the customer. And if that’s the case, we’re one of many solely gear financing firms that can take into account financing it for 5 years.
In any case, like all of us getting older say, “age is only a quantity”.
