When it comes to vehicle finance in South Africa, one of the most common roadblocks buyers face is the age of the vehicle. Whether you’re eyeing a reliable used car, a sleek motorcycle, or a family caravan for your next road trip, understanding how banks view vehicle age is crucial if you’re planning to finance the purchase.
The 10-Year Rule: What Most Banks Say?
Some major banks stick to a firm guideline: they won’t offer pre-owned vehicle finance for vehicles older than 10 years at the time of purchase. This is particularly true when you approach the bank directly. The reason? Older vehicles pose a higher risk in terms of reliability, resale value, and maintenance costs, which affects the bank’s risk exposure.
This rule is even more strictly applied when it comes to leisure vehicles like caravans, camping trailers, and boats. Since these aren’t typically everyday vehicles, banks often won’t budge on the 10-year limit unless in exceptional cases when a client has banked with them for a really long time and their credit history has always been extremely good.
The Workaround: Vehicle Finance Facilitators/Originators
There’s some good news, though. If you use a reputable finance facilitator such as ourselves, you can potentially finance motor vehicles and motorcycles up to 15 years old. These facilitators normally inspect the vehicle, giving banks the confidence to extend credit on older vehicles.
While you may pay a slightly higher interest rate or fees with this route, it gives buyers more flexibility—especially when you’ve found the perfect vehicle but it’s just outside the usual financing window.
When Is a Vehicle Too Old to Finance?
In general, if a vehicle is older than 15 years, banks and even most finance facilitators will consider it too risky to finance. At that point, your best options may be:
- Buying outright with cash
- Taking out a personal loan (typically at a very high interest rate)
Is There an Age Limit for People Applying for Vehicle Finance?
Interestingly, while vehicles may have age limits, people don’t—at least not in the same strict sense. As long as you’re over 18 years old and can prove a steady monthly income, you can apply for vehicle finance.
Many people in their 60s and even 70s successfully apply for car, caravan, or even boat finance. Some banks might request credit life insurance or another form of cover if you’re over a certain age, but this is generally a safeguard and not a dealbreaker.
As always, affordability is key. Whether you’re applying at 25 or 75, lenders will assess your ability to meet the monthly repayments based on your income, expenses, and credit history.
Final Thoughts
If you’re planning to finance a used car, motorcycle, caravan, camping trailer, or boat, the age of both the vehicle and the buyer can affect your options—but maybe not as much as you’d think. While banks prefer newer vehicles, a finance facilitator can help you extend those limits up to 15 years. And when it comes to your age? As long as you have an income and a clear credit profile, you’re never too old to hit the open road.