If you've been turned down for a bad credit auto loan, you may think that there’s no hope for getting financed unless you choose some old, rundown beater. This thought is common, but it’s not accurate. Ironically, it's harder to get approved for a bad credit auto loan if you choose an older car because of the rules subprime lenders have.

Car Requirements for Bad Credit Auto Loans

Can an Older Car Get You Approved?If you tried to get an auto loan but weren’t successful, maybe you’re thinking a cheaper, older vehicle can get you approved.

In truth, if you work with the right lender, you’re more likely to get approved for an affordable, newer car than a beater that’s likely to end up in the shop before you finish paying off the loan. The reasons for this are the guidelines that govern which vehicles a bad credit lender is willing to finance.

When you need a bad credit auto loan, your best chance to get approved is to apply with a special finance dealership that's signed up with subprime lenders. Most subprime lenders have similar car requirements when working with bad credit borrowers.

While the specifics can vary, these requirements generally include:

  • Age restrictions – Most lenders won’t finance vehicles over a certain age, usually around seven to 10 model years, though some may cut this off at a lower point.
  • Mileage restrictions – As a general rule, subprime lenders won’t consider cars with more than 100,000 miles on the odometer, though some may cut this off at a lesser amount.
  • Loan amount restrictions – The minimum loan amount for a bad credit car loan is typically $5,000. This doesn’t necessarily mean that the vehicle you’re considering has to be expensive, but the total loan must come to at least $5,000. If you’re looking at something with a lower cost, chances are you’re going to have to pay cash instead of financing.

As you can see, these guidelines narrow the field of the types of cars you’re able to finance. In some cases, it may be a last resort option to buy a cheap, older used vehicle, but how much use are you going to get out of that kind of car?

A vehicle should be something you can rely on, something that gets you around for a long time. Not only is getting a car you can count on possible with bad credit, it can help you repair your credit.

Getting a Reliable, Affordable Vehicle

When you work with a bad credit auto lender, you have the chance to get the vehicle you need and to repair your credit at the same time. Each on-time payment that you make helps you build a positive payment history that can quickly help turn around your credit situation. But, in order to get a bad credit car loan, you have to work with the right lender.

Subprime lenders that have the ability to approve bad credit borrowers for auto loans only work through special finance dealers, and we want to help you find one. At Auto Credit Express, we work with a large network of these dealerships all around the country.

We’ve been connecting credit-challenged borrowers with the right resources for over 20 years, and we want to help you get started right now. Just fill out our easy, no-obligation car loan request form to get started, and you could be on your way to a better vehicle than you thought possible!