A frequent question when considering a car title loan is “can I get a title loan on an older car?”. There is no simple yes or no answer to this question. The truth is it depends on how much the car is worth, and what the specific lender’s policies are.
The driving factor to your ability to get a title loan on an older car is the value of the car. Some cars hold their value better than others. In fact, many older (classic) cars appreciate in value over time.
Use one of the online valuation tools to get an idea of what your car is worth. If it has value, you can probably get a title loan. If the vehicle is not worth what it would cost to perform a medium repair; then getting a title loan may be a challenge.
Common Lender Restrictions on Car Title Loans
Most lenders have some sort of restriction on the vehicles they will lend on. These include both age and mileage based restrictions. While arbitrary year restrictions don’t make sense to us, neither does lending on absolutely any vehicle.
Model Year Restrictions
Many title lenders have year restrictions on car title loans. For example some require the vehicle to be less than 10 years old. Others require the car to be model year 2005 or newer.
In addition to the model year restriction some lenders also have a mileage maximum. These are usually coupled with the year. For example, it is common to find something like “vehicles 2005 or newer with less than 150,000 miles”.
How to get a Title Loan on an Older Car
There are a couple of ways to get a title loan on an older car. The first is to find a lender that has no restrictions and lends on any vehicle.
Older Car Categories
To make it easier to decide how to get a title loan on an older car, and, more specifically, what type of lender to choose, we categorize car into three categories. Then, we discuss options for each of the three categories.
Category 1 – Older Car that still has Value
The first category is an older car that still has a fair amount of value ($5,000 or more). It is not uncommon to find older cars that are still worth a significant amount of money. These can include vehicles like:
- Luxury cars that are well taken care of
- Certain models that don’t depreciate fast
- Cars with lower mileage than most that age
- Vehicles with expensive aftermarket modifications
There are plenty of other reasons an older vehicle may still have some value regardless of whether or not it meets certain lender year restrictions. In these cases, find a lender that focuses on vehicle value and not age.
Category 2 – Older Car with Little Value
The second category is an older car with little value. Usually you will know that your car fits into this category. A simple question to ask is: If you need a major repair, would the repair cost more than the vehicle is worth?
If the answer to that question is yes, than you will need to find a lender that lends on any vehicle. The loan will likely be for a small amount with a high interest rate.
Category 3 – Classic or Antique Car
The final category is an antique or classic car. The values for these cars can range from very little to a significant amount. Some classic cars are worth far more than many new cars. In these cases, simply find a lender that offers title loans for classic cars.
Finding the Best Title Lender
Once you decide to get a title loan on an older vehicle you need to find the best title loan company for your situation. Depending on which category your vehicle falls in, you may have a limited number of choices.
For example, not every lender will lend on any vehicle. Additionally, not all lenders offer classic car title loans. You may want a completely online title loan with no inspection, you will need to make sure the lender offers these.
Find the best title loan company for your situation. Typically, we suggest getting multiple quotes from different lenders. As with any title loan, always read the loan agreement in full before signing.