Can I Finance a High-Mileage Car?

Can I Finance a High-Mileage Car?

You can finance a high-mileage car with a loan explicitly provided for this purpose. In fact, if the car you want to purchase is more than 10 years old or has more than 100,000 miles on it, you may only qualify for an extended-mileage car loan.

Lenders often provide extended-mileage car loans in two categories: high-mileage loans and classic car loans. A high-mileage loan, for example, might be available for cars from 2018 and earlier, while a classic car loan may apply to cars from 1999 and earlier. Other lenders may consider classic cars those that are at least 20 years old.

Generally speaking, the older the car and the more mileage it has, the more you'll pay in interest. Used cars already come with higher rates than new cars, since they're more likely to have issues—leading to the potential the car will stop running before the loan is paid off. You'll also pay more in interest if, for example, you choose a loan term longer than two years.

What Loans Are Available for High-Mileage Cars?

The loan terms available will depend on the lender, your credit score, the age of the car and its mileage. Lenders may have a maximum loan-to-value (LTV) ratio, which compares the amount you plan to finance with the car's current value. You can find extended-mileage auto loans at financial institutions such as credit unions and regional banks.

Here are examples of loan terms you may find for high-mileage cars as of March 2025:

• Up to 10 years old and more than 100,000 miles: You could pay a minimum of 7.44% APR for up to 48 months, or a minimum of 7.64% APR for 49 to 60 months.
• At least 7 years old with a maximum of 150,000 miles: You could pay a minimum APR of 8.20% for up to 48 months.
• Classic car at least 20 years old: Your rate could be at least 10.49% for 36 to 60 months, at least 10.99% for 61 to 72 months, or a minimum of 11.99% for 73 to 84 months.

In each of these cases, it will be cheaper to finance a car when your credit score is as strong as possible. You will qualify for the lowest possible rates with a good to excellent credit score, or 670 or higher on an 850-point scale.

Learn more: How to Get Your Credit Ready to Buy a Car

Should I Finance a Car With Over 100K Miles?

Financing a high-mileage car is a personal decision dependent upon how long you plan to drive the car and the rate and term you qualify for. Financing a car with more than 100,000 miles could be worth it in the following circumstances:

• You're a member of, or willing to join, a credit union. Unlike big banks, credit unions are owned by their members and are mission-driven, meaning they seek to make financing more accessible. As a result, they may provide more options for, and lower rates on, high-mileage car loans than other financial institutions. You'll have to join a credit union to take advantage of their product offerings, which may include paying a membership fee of $5 to $25.
• You can afford the shortest term possible. You could pay significantly more over time if you choose a long loan term for a high-mileage car loan, generally of more than two to three years. Rates increase as you increase the loan term. You'll pay more per month if you choose a shorter term, but you'll limit the risk that the car breaks down while you still owe money on it, or that you'll owe more than the car is worth, leading to negative equity.
• You plan to keep driving the car for a long time. If you only plan to keep the car for a few years, the interest on a high-mileage car loan will make it an expensive short-term investment. If you have the cash to buy the car outright, owning the car for a brief time will be less costly.

The Bottom Line

Financing a car with high mileage is likely to get more common as cars stay on the road longer, and it's a solid choice for borrowers who want to keep their cash savings set aside for other goals. But it will require some digging to find a lender who will work with you. Your best bet may be to join a credit union that offers competitive rates, if you're not already a member. As always when shopping for a loan, compare options based on your car's age and mileage, and improve your credit before applying to ensure you get the lowest rate you qualify for.