Can I get car finance for any car?

Car finance can be a great way to help you get behind the wheel of your dream car, but what if you’ve got a very particular type of ride in mind? Let’s take a look at what your options might be for financing different types of cars.

When you’re shopping for your next car, there are tons of car finance options out there to help you hit the open road. Car finance is wonderfully flexible, and you can use it to buy a huge range of vehicles, but you won’t necessarily be able to get a deal for every car.

You might find that car finance companies impose some limitations based on the type of car, how old the car is, and the condition it’s in.

What are the most common types of cars eligible for finance?

Generally speaking, the majority of the most popular cars you see on the road would qualify for car finance. 

Every lender has their own specific rules and requirements, but it’s a pretty safe bet that most of them would agree to finance brand new cars, and second-hand cars that have only been lightly used. The most popular makes and models would usually qualify for car finance, too.

What are the financing options for different vehicle types?

If the car you’ve got your eye on doesn’t quite fit into one of the most common categories - so it’s not brand new, lightly used, or a popular make and model - that doesn’t mean it’s the end of the road for car financing options. Depending on the lender, and the car, you may need to meet some extra requirements or provide some extra information.

Here’s how car finance could work for other types of vehicles:

Used cars

Most car finance companies will consider lending for a used car, but some might have specific rules for the maximum age or mileage they’ll accept.

Electric cars

If you’re eyeing up an electric vehicle (EV), then getting car finance for it should be pretty straightforward - many lenders will finance electric cars, and some even offer incentives or better deals for EVs compared to petrol or diesel cars.

Luxury cars

Feeling fancy? You could get a car finance deal for a luxury car, but there’s a good chance you’ll need to pay a bigger deposit, or prove that you earn a higher income.

Classic cars

It’s certainly possible to finance a classic car, but you might need to seek out a more specialised lender, like a dedicated classic car finance company, to get a deal. You might also need to have a higher credit score to get approved.

Older vehicles or high-mileage cars

Lenders will usually consider financing older cars, or those with high mileage, but the finance agreement will often come with stricter requirements or a higher interest rate. This is because lenders tend to see older cars and high-mileage cars as more risky.

What are the factors that affect car finance eligibility?

When weighing up whether to approve a car finance application, the lender takes into account information about you, and the car you want to buy.

For the car, the lender will consider how old the car is and how many miles it’s done. The car’s condition is also important. All of these things combined will give an indication of the car’s potential resale value. Generally speaking, younger cars that are in good nick, with low mileage, stand a better chance of being accepted for car finance. 

As a general rule, your best bet will be a car that’ll be less than 10 years old at the end of your loan term, and with under 100,000 miles on the clock. Here at Carmoola we’ll finance cars that have fewer than 100,000 miles on the clock and are under 15 years old at the end of the agreement term.

The car is only half the story, though - the lender will also want to gauge how much of a risk they’d be taking by lending to you. That’s why your credit history is so important, as this will give them an idea of how responsibly you’ve managed your finances in the past. On top of that, the amount you put down as a deposit, and the length of time you want to take to repay the loan will also play a part.

What are the alternatives for financing unique car types?

We’re the first to say how awesome car finance is - it’s flexible, and lets you spread the cost of your new car in an affordable way. But, there are many roads to getting a new car, and finance is just one of them.

If you’re buying from a dealership, you may be offered specific financing by the dealer. If you’re buying a slightly more niche type of car, this can be a handy option. There are also lots of specialist lenders out there who cater for unique types of vehicle. If mainstream finance is proving tricky, then it may be worth trying one of these specialists.

You might want to explore the option of taking out a personal loan or using a credit card to pay for your car - this won’t impose any restrictions on the type of car you can buy. If you do go down this route, make sure you give the car a thorough check before you commit, and make sure you can keep on top of repayments.