Is it impossible to get a loan for an older vehicle?

Status
Not open for further replies.
I would call it a service the bank is doing you in preventing you from potentially diving off a financial cliff borrowing money on 25-30 year old truck. Risky and with $20k/year income hard sell.

Is your Jetta paid for?
 
Originally Posted by madRiver
I would call it a service the bank is doing you in preventing you from potentially diving off a financial cliff borrowing money on 25-30 year old truck. Risky and with $20k/year income hard sell.

Is your Jetta paid for?


Yep, sounds like a not so wise financial decision.
 
Originally Posted by FordBroncoVWJeta
I've been looking into buying an older truck 25-30 year range that still is very clean. Before the prices skyrocket anymore. Looking to spend around $10-15K. I hate watching Mecum and seeing the cars my dad drove as a high schooler go for 40-80K. I would like to buy a truck before they do the same thing in 20 years.

The problem is I keep getting denied loans. I have $0 in bills. I make roughly 20K a year part time. I'll probably still live with my parents for the next year or so till I get a better paying job. I'll have my degree this Spring (have one class left). Yet they let me buy a brand new VW Jetta and I paid it off in 1.5 years. I have a 750 credit score. So I have zero doubts in my mind it would be paid off in just a years time.

Is it just impossible to get a loan for an older vehicle?

Drive to a big, diverse city with over 300k residents and bordering the worst neighborhoods, look for used vehicle sales lots. They will finance you. But it won't be a cheap interest rate and pay attention to the repossession terms of the contract.

That's how my daughter got her Pacifica.
 
Last edited:
You have a paid for car that happens to be nicer than what most are driving. Taking a loan out to buy this non-essential vehicle (toy) is horrible advice. Don't take advice from broke people. Always pay cash for toys. Focus on your career and financial stability - in which case at some point you will have cash in hand and can still buy the toy if you want it that badly. I think you'll find later on that when you pay cash for things (smart), you'll make lot wiser buying decisions than the easier option of taking payments out on something (dumb). This realization will have much greater benefit to you than instant gratification.
 
Last edited:
Didn't read all the posts but I'll side on the "bad idea" side. While I think taking out a loan so as to establish credit history is a good idea, as you don't know when you'll be wanting to get a house, in this case it's to buy the wrong vehicle. It's a toy, not something you "need".

I'd keep saving and pay cash for this toy. In a couple of years, maybe trade in your car for something new(er)--by having a substantial downpayment, perhaps you could avoid high interest charge even with a high interest rate, pay aggressively, and establish credit history. And look like a decent risk for a bank to accept.
 
yes.. ofcourse . but we can get loan if that old vehicle is worth
01.gif
 
Last edited:
Yes it's impossible because older vehicles require more expensive repairs and if someone needs a car loan for $10k-$15k they sure as [censored] don't have the $$ to pay for a used transmission. Plus the old vehicle is essentially worth scrap as a repo at auction.
 
In the early 2000's I stumbled on a low mileage 95/96 Ford F350 Centurion conversion for sale. For those unaware, they were basically a crew cab F series with a bronco grafted to the back. The one I'd found had the 460ci 7.5 liter, 4x4 with 4.11 gears. The inside came complete with rope lighting, wood grain consoles, and a tv/vcr. I negotiated it down to $12500 from his asking price of $16000. I got approved for a 36 month loan the longest term they go due to the vehicle being just over 5 years old. I looked into insurance and since it was a 1 ton my policy wouldn't cover it.
It hurt my 22 year old pride to realize that on my meager laborers salary at the time that if I bought it, feeding the big block Ford fuel would be almost impossible with the costly monthly note and steep insurance premiums. I hope it went to a good home....
 
Status
Not open for further replies.
Back
Top