Can a car over 10 years old be used for a mortgage loan?
2 Answers
10-year-old cars can still qualify for mortgage loans as long as they hold value. Vehicle-in-custody mortgage loan: The vehicle is transferred to the company for safekeeping, stored in a dedicated parking lot with 24-hour supervision, and regularly started to maintain engine condition. Non-custodial vehicle mortgage loan: Customers may choose to only submit documentation to the company while retaining vehicle usage. This requires mortgage registration, offers flexible and fast loan services, typically providing 70-80% of the assessed value, and can often be processed within the same day with complete documentation. Mandatory requirements for vehicle mortgage loans include: personally owned cars, fully paid vehicles, complete documentation, and vehicles within their service period.
I've been into cars for many years and have collected quite a few vintage cars. I once owned a 15-year-old classic car that I used as collateral for a loan. Generally, banks and small loan institutions have restrictions on older vehicles, typically with an upper limit of 10-15 years, beyond which they won't accept them. However, as long as the car is well-maintained—such as having no serious damage and complete regular maintenance records—you can still find specialized auto loan companies willing to work with you. They'll send an appraiser to assess the actual value and then lend a portion of it, say 30%-50%. The key is to focus on the car's condition rather than just its age. In my case, I got a loan of 80,000 RMB, but the repayment pressure was high, so I'd advise against setting your expectations too high. Depreciation is a major issue—older cars lose value quickly each year, and it's common not to get much money from them. You might be better off selling the car outright for cash and then borrowing money separately, as it’s much simpler and less hassle.
