Here at Auto Credit Express, we help people understand and get through the poor credit car buying process. Our commitment to assisting consumers has helped us become a leader in the industry. And part of that commitment is answering the questions potential applicants have about the process.
Here is a question we recently received that many people could benefit from learning the answer to:
"I would like to know if there is somewhere that I can find the purchase rules, if any, such as age and mileage of eligible vehicles."
There are certain purchase rules that bad credit lenders have when it comes to eligible vehicle requirements. However, such a comprehensive guide isn't available on our website because different lenders have different requirements.
For those who do not know, Auto Credit Express helps people dealing with challenging credit situations find financing. We do this by connecting applicants to car dealerships that work with subprime lenders. These places specialize in helping people dealing with damaged credit get approved.
However, while subprime lenders are willing to approve borrowers with bad credit, each operates in a slightly different manner. They all will have their own set of rules, so there is no universal standard for purchase rules or eligible vehicle requirements.
Still, our experience in the industry has given us an inside look at what you can typically expect.
Eligible Vehicle Requirements for Bad Credit Car Loans
Subprime lenders do place some restrictions on the age, mileage and price of the vehicles they finance. Eligible vehicle requirements vary from one lender to the next, but they share some common traits:
- Lenders have vehicle age limits - Typically, high-risk lenders will only finance new cars or used vehicles that are 10 years old or newer. Some even stick to seven years old or newer.
- They will also have a vehicle mileage limit - Subprime lenders typically only finance cars that have less than 100,000 miles on the odometer, regardless of the model year.
- Lenders typically set a minimum financed amount - Alongside the first two restrictions, lenders also typically set a minimum amount to be financed. While it will vary, the least amount you can finance is normally $5,000.
Lenders have their reasons for these vehicle guidelines. Mainly, they want borrowers to finance a vehicle that is dependable. Older cars with higher mileage are not as reliable as newer cars with fewer miles. They also have a greater chance of breaking down and/or needing expensive repairs. Things can go south in a hurry when a vehicle being financed breaks down.
The Bottom Line
Remember, each lender is going to have their own set of requirements. However, the requirements discussed above are what we'd typically expect. We know this because we have been helping people find bad credit auto loans for close to 20 years.
If you are dealing with imperfect credit and need to finance a car, you're in the right place. Auto Credit Express can connect you to a local dealership that specializes in working with challenging credit situations.
Get started today by filling out our free, easy and secure online auto loan request.