Drivers warned over little-known mileage 'limit' on car finance

Drivers and motorists have been warned over a little-known and lesser-known age "limit" rule on car finance. 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.

Car.co.uk warned for a standard car loan, however, vehicles closer to seven years are more commonly accepted. There are lenders on the market, nonetheless, who will specialise in finance agreements for older cars. A personal loan is often the cheapest way to buy a car (unless you can get 0% finance via a dealer).

Car finance usually refers to a specialised set of finance products that you can only get when buying a car - usually it refers to Hire Purchase (HP), Personal Contract Purchase (PCP) and car leasing (sometimes called Personal Contract Hire).

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While you can also get a standard personal loan to buy a car, these finance products differ in that you won't own the car while you're paying them off, the finance company does. In fact, it's only with HP that you're guaranteed to own the car at the end of the deal.

Car.co.uk said: "If you do decide on an older car for your purchase, it’s important to keep your vehicle running as efficiently as possible. Make sure you get your vehicle serviced regularly and change the engine oil twice a year as a minimum. Over time, engine parts will get worn and this essential oil keeps everything lubricated so that the engine doesn’t harm itself. An engine that runs efficiently will also save you money on your fuel costs.

"As experts in the auto industry, at Car.co.uk we are proud to provide a resource for car buyers. If you are looking for a finance agreement for an older car or specialist vehicle, you can get in touch and arrange a call back. We’ll endeavour to find you a suitable lender wherever possible."