Can You Get a Loan for a Vehicle With High Mileage?
If you're searching for an affordable vehicle, exploring options with high mileage might be a good idea. While these cars may not have as much life in them as newer models, they have lower purchase prices and can still be reliable.
Should you buy a car with high mileage? And what are the financing options for these vehicles? Edge Financial Services explains everything you need to know.
What You Need To Know About Financing a Vehicle With High Mileage
"High mileage" for a car is generally considered to be 100,000 miles or more. However, the car's make and model, level of maintenance, and many other factors can impact what a high mileage figure would be. You might also evaluate the car based on the average annual mileage rather than the total mileage; for example, if a car has been driven more than 15,000 miles per year, it might have more wear and tear than one with lower annual mileage.
Modern vehicles with proper maintenance can often last 200,000 miles or more. So, should you buy a car with high mileage? These are some considerations to keep in mind.
Should You Buy a Car With High Mileage?
You might explore cars with high mileage in any of these cases:
- You are looking for an affordable vehicle.
- You don't need the latest features and amenities.
- You need to bridge the gap until you can purchase a newer vehicle.
- You want to lower your insurance costs.
- You don't plan to put more than 10,000 to 15,000 miles on your car each year.
A car with high mileage might be a good idea even if not all of these factors are true. If a vehicle has been well maintained, it might serve you well for a decade or longer, even with high mileage. But these vehicles may also be prone to more mechanical issues than newer vehicles, and you should leave room in your budget for these unexpected costs.
Your vehicle dealer can help you explore the pros and cons of high-mileage vehicles and make an informed decision.
Your Financing Options for a Car With High Mileage
You may have several options for financing a vehicle with high mileage. Many car dealerships offer financing for these vehicles directly through their businesses. You may be able to apply for financing while you are at the dealership and receive fast approval.
Alternatively, you can explore these financing options:
- Credit union loans
- Personal loans through a financial institution
- Subprime or nonprime lenders, which tend to have broader eligibility criteria than traditional lenders
- Peer-to-peer loans
If you want the lowest interest rates, an auto loan may be the best route. These loans use your vehicle as collateral, reducing the lender's risk.
Factors Lenders Consider for High-Mileage Vehicle Financing
If you are thinking of buying a car with high mileage, understand that your financing rates and terms may vary based on a range of factors, such as:
- Vehicle condition
- Maintenance history
- Your credit score
- Loan-to-value ratio
- Depreciation value
It is worth requesting as much documentation as you can about the vehicle's maintenance, ownership history, and overall condition. You may even request an inspection from an experienced mechanic before purchasing this type of vehicle. Once you feel confident in the vehicle's durability, you can better assess your financing options and rates and choose a lending plan that makes sense for your financial situation.
Seek Financing for a High-Mileage Vehicle From Edge Financial Services
Should you buy a car with high mileage? This may be a good idea if you are looking for a lower purchase price. Still, high-mileage vehicles can cost well over $10,000, and you may not be able to afford this price out of pocket.
Edge Financial Services LLC provides accessible financing for high-mileage vehicles. We specialize in helping dealers offer financing for borrowers with less-than-ideal credit scores or no credit histories. Contact us today to learn more.
