Most banks and NBFCs provide used car loans.
|Lender||Interest Rate||Repayment Tenure|
|HDFC Bank||13.75% – 16.00% (Rack Interest)||7 years|
|Punjab National Bank||Starts from 7.90%||5 years|
|Axis Bank||14.40% – 16.40%||5 years|
|Mahindra Finance||Contact the bank||5 years|
Regarding this, can I finance a 20 year old car?
A car that is 20 years old is generally considered to be a classic car, and you’ll need to seek special classic car financing. A classic car loan can be hard to come by and is only offered by a few select lenders. One provider of classic car financing is LightStream, a division of Truist Bank.
Similarly, can you get a 7 year used car loan?
A car cannot be older than 15-20 years at the end of the loan term. Therefore, applying for a 7 year car loan, it is safest for you to purchase a car that is not older than 8 years. Your age might make a difference, as well.
Do banks finance 10 year old cars?
Typically, a bank won’t finance any vehicle older than 10 years, even if you have good credit. If you don’t have great credit, you may find it difficult to finance through a bank, even for a new car.
5 Ways to Get a Smaller Car Loan
- Save up a large down payment.
- Buy used, especially from an independent seller.
- Shop around for a lower rate.
- Consider extending — or shortening — the length of your loan.
- Get a basic model and forgo all the ‘extras’
There’s no right or wrong length to finance a used car. The loan term that’s right for you can be as short as 24 months or as long as 84 months – it all comes down to your current financial situation and future plans for the vehicle.
Here are some lenders that offer classic car loans.
- Collector Car Lending.
- DCU Banking.
- J. Best Banc & Co.
- LightStream (a division of SunTrust Bank)
- Star One Credit Union.
- Woodside Credit.
Upper age limits depend on the lender, but up to 79 years is typical.
Generally, most lenders adhere to a minimum amount for auto financing of $5,000 if you’re taking out a bad credit car loan. However, this doesn’t mean the car you’re buying has to be that expensive – just that the loan amount has to reach the threshold.
Most banks, according to Loan.com, will not finance any loan for less than $5,000. The minimum finance term for a small loan is typically 12 months. These aren’t hard and fast rules, though. Some banks have the minimum set at $7,000 others $8,000.