Quick Facts About Financing Older Used Cars
- Financing options for older, high-mileage cars have expanded, with many banks and credit unions offering loans for vehicles 10-15 years old.
- The average age of cars on U.S. roads is 12.8 years, as high prices push more buyers toward older used vehicles.
- Credit unions typically provide lower interest rates and more flexible terms for older car loans than traditional banks.
As the average lifespan of cars steadily increases, more private sellers and some dealerships are offering vehicles made more than a decade ago. If the condition of an older model is good and it meets your needs and budget, will securing a loan be possible? Read on to learn about getting an auto loan for an older used car that still has some good years remaining.
- Loans for Older Used Cars With High Mileage
- Average Age of Cars
- Older Used Car Market
- Financing for High-Mileage Vehicles
- Credit Unions vs. Banks
Auto Loans for Older Cars With High Mileage
Some lenders have become more lenient with their loans for older cars. This shift doesn’t mean you will automatically qualify for thousands of dollars for a car loan when trying to finance an older automobile. But it’s much easier to find financing for a new-to-you car that’s more than a few years old.
Some banks, including Santander, and most credit unions will consider loans on older used vehicles.
Bruce Jackson, head of the Santander US Auto Business and CEO of Santander Consumer USA, said the company “is always looking to offer competitive auto loan rates on used cars for our qualifying customers.”
He added, “In today’s market, where used cars are more plentiful than new vehicles, financing older models is a necessity that we are happy to provide and have provided for years to meet the needs of our customers. This includes offering financing for used vehicles up to 10 model years of age, in accordance with our general vehicle policy.”
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What Is the Average Age of a Car?
The average age of vehicles in the U.S. continues to climb. According to automotive data from a recent study from S&P Global, the average age of cars on the road is 12.8 years old, the highest ever recorded, and about two months older than last year’s average.
The reliability of cars today is only a portion of the reason we see people driving older vehicles. New and used car prices have eased off their pandemic-era peaks but remain high. If sticker shock didn’t bring enough discouragement, elevated interest rates have kept many drivers in their current vehicles for as long as possible. The group of buyers who typically shop for late-model used cars now may consider older used vehicles.
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What Is Impacting the Market for Older Cars?
The positive spin on the issue is that improvements in quality across the automotive industry mean carmakers are manufacturing more reliable cars that stay on the road longer. While that has contributed to the longevity of vehicles today, other reasons aren’t as upbeat. The lack of affordable options and limited availability sometimes forces people to keep what they have for longer.
MORE: Buying Used vs. Certified Pre-Owned Vehicles
Slow Sales Pace, Limited Selection
The auto industry suffered during the COVID-19 pandemic. Fewer cars were produced, which increased demand and decreased supply. With the current 43-day supply in June 2025, used inventory levels remain below historical norms, but the pace of sales has stayed relatively slow amidst an uncertain economy.
Prices are down from 2022 highs, but the average asking price for used cars is still around $25,500. There is a small supply of older, higher-mileage used cars for under $15,000. On average, dealers currently have just a 31-day supply of those.
MORE: How to Buy a Car From Out of State
Financing for High-Mileage Cars
Financing a high-mileage car is not a hassle like it used to be. Lenders are open to financing older cars since they tend to withstand the tests of time. While financing may be available through a dealership, local bank, or credit union, it’s best to know what you can afford and shop around for the best interest rate. Use our car calculators to crunch the numbers to see how much you can afford to pay for a used vehicle.
You must look around for a loan that works for the vehicle you need. For example, my local credit union finances used cars up to 15 years old, but the vehicle must have less than 100,000 miles. The major bank I use restricts vehicle age to 10 years but allows up to 125,000 miles on the odometer. Another well-known national bank limits vehicle eligibility to those 15 years or younger with fewer than 120,000 miles.
Need a loan for a car older than that? Some specialty lenders will make loans for 20-year-old vehicles if the mileage is under 150,000.
Used Car Loan Rates
Loan interest rates for used cars are typically higher than those for new vehicles. Lenders consider used cars riskier investments — they have already partially depreciated, have uncertain resale value, and are more likely to have mechanical problems. To offset the risk, lenders have higher rates for used models. The average used car loan rate today is about 12% and about 7% for new car loans, according to Experian.
The interest rate a borrower obtains depends heavily on their credit score. A higher credit score indicates less risk, which lenders reward with a lower rate.
| Risk segment/credit score | Avg. used loan rate |
| Super Prime (781-850) | 6.82% |
| Prime (661-780) | 9.06% |
| Near Prime (601-660) | 13.74% |
| Subprime (501-600) | 18.99% |
| Deep Subprime (300-500) | 21.58% |
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Credit Union vs. Banks
Banks and credit unions can help you along your car-buying journey. Unlike banks, credit unions are owned by their members, not shareholders. This model allows credit unions to offer lower interest rates to buyers looking to finance a vehicle, even an older one. As a result, credit unions can be a critical source of financing for consumers looking to buy affordable used cars that fit their needs.
Credit unions and traditional banks make up the largest lenders in the used car loan market. According to Experian’s State of the Automotive Finance Market report for the first quarter of 2025, each of these lenders granted 28% of all auto loans.
Of course, a potential borrower needs to be a member of the credit union that administers the loan. Similar to traditional banks, membership is as simple as opening an account.
MORE: How to Buy a Used Car in 10 Steps
Bottom Line on High-Mileage Older Car Loans
High prices and limited availability of newer models push more buyers to consider older used cars. Financing options for older, high-mileage vehicles have broadened, with banks and credit unions now more willing to offer loans for cars that are 10, 15, or even 20 years old. Shop around and get preapproval for the best loan terms available. Remember to check the vehicle history report early in the shopping process and schedule a car inspection at a reputable auto repair shop or through AiM Certify.
Editor’s Note: This article has been updated since its initial publication. Rick Kranz contributed to this report.