19 Oct What’s the Maximum Age to Finance a Car in SA?

The short answer: most banks and vehicle finance houses will not finance a car that will be more than 10 years old by the end of the loan term, and some stretch that to 12. Loan Wave takes a different route.

Our auto loans come with no vehicle age limit, so an older car is not an automatic decline. Here is how the car finance maximum age works, and what it means if you have your eye on an older car.

The Usual Car Finance Age Limit

Traditional vehicle finance is secured against the car itself, so the lender wants a vehicle that will still hold its value if it has to be repossessed. That is why most providers set an age cap of around 10 years, with a few allowing 12.

The detail that catches many buyers out is that the cap is measured at the end of the term, not on the day you apply.

How the Age Limit Is Worked Out

To see how this plays out, assume a lender with a 10-year limit. You add the car’s current age to the length of the loan, and the total cannot go above the limit:

• A 5-year-old car can usually be financed for up to 60 months.
• A 6-year-old car is limited to about 48 months.
• An 8-year-old car is limited to about 24 months.
• A 9-year-old car is limited to about 12 months.
• A car that is already 10 years old or more is usually declined.

Policies differ from one lender to the next, so treat these as a guide and not a promise.

Can You Still Finance a 2009 Car for 72 Months?

With a bank, no. A 2009 model is now around 17 years old, and a 72-month term would make it 23 by the final instalment, far beyond any age limit.

With Loan Wave, the car’s age is not the barrier, but our repayment terms run from 6 to 60 months, so a 72-month term is not available. What decides your loan is affordability, not the year on the licence disc. Our guide on how to finance for cars older than 10 years walks through a few examples.

How Loan Wave Finances Older Cars

We lend you cash instead of financing the vehicle itself. You can borrow from R20,000 to R350,000, repaid over 6 to 60 months, and the funds go into your bank account so you can pay the seller directly, like a cash buyer.

The car is registered in your name from day one, with no bank holding the title. If you are weighing this up, read about using a personal loan for vehicle finance and our comparison of personal loan vs car finance.

Before approving anything, we run an affordability assessment as required under the National Credit Act, looking at your income, expenses and existing debts. Bad credit is considered, so it is also worth knowing you can still get a loan with a bad credit score in many cases.

Before You Buy an Older Car

An older car can be great value, but only if you check it properly. If you have spotted an older car you like, run through this list first:

• Ask for the full service history and a valid roadworthy certificate.
• For a private sale, run the VIN to check for outstanding finance or a theft record.
• Consider a pre-purchase inspection. It is a third-party cost, but it can save you from an expensive surprise.

Age limits are a bank rule, not a rule about whether you can afford a car. As a lender registered with the National Credit Regulator, Loan Wave looks at the whole picture, so you can apply online and find out where you stand.