Finance for Cars Over 100,000 Miles

High-mileage car finance: what to know

Buying a car with more than 100,000 miles can be a smart way to keep costs down, especially if you know the vehicle’s history and maintenance record. The challenge is that financing such cars is not always straightforward. Many mainstream lenders set age and mileage caps, and some popular products, like PCP, are often unsuitable because they rely on a predicted future value the car may not comfortably meet.

That does not mean you cannot finance a higher-mileage car. It simply means the focus shifts to products that are based on affordability and ownership rather than future value. Personal loans, hire purchase and conditional sale are common candidates, often offered by specialist lenders who understand older vehicles. The trade-off is usually a higher interest rate to reflect perceived risk, so comparing total cost and terms becomes essential.

A well-documented service history can matter as much as model and age.

Before you apply, think about how long you plan to keep the car, the likely maintenance spend, and whether you need outright ownership from day one. If you are comfortable budgeting for repairs and want a lower purchase price, a high-mileage car could be financially sensible. If you prefer low maintenance exposure and predictable monthly costs, you may need to adjust expectations or explore other routes.

In every case, affordability is key. Lenders will look closely at your income, commitments and credit profile. Brokers like Kandoo can introduce you to lenders that consider older, higher-mileage vehicles, helping you avoid unnecessary hard searches and saving time.

If PCP is off the table, consider products that end in ownership.

Is this the right route for you?

High-mileage finance suits buyers who value a lower purchase price over pristine condition and who are comfortable setting aside a maintenance reserve. It may also suit drivers who cover modest annual miles and plan to keep the car for several years, allowing them to amortise repairs against a low initial outlay.

If you need the newest tech, manufacturer warranty cover or ultra-low running risk, this path may feel too hands-on. For budget-conscious drivers, however, it can deliver strong value when combined with careful inspection and realistic finance terms.

Ways to fund a 100k+ mile car

1. Hire Purchase or Conditional Sale - deposit plus fixed monthly payments, ending in ownership.

2. Unsecured Personal Loan - borrow to buy outright, then own the car from day one.

3. Specialist Lenders via Broker - lenders willing to consider high mileage or older vehicles.

4. Credit Union Loan - community-based lending with fair rates and flexible terms.

5. Secured Loan on Property - larger borrowing at potentially lower rates, but higher risk.

6. Dealer Finance on Older Cars - some independent dealers offer tailored plans for high mileage.

7. Credit Card Purchase Split - use for part of the price for Section 75 protection.

8. Savings Top-up - combine cash with a smaller loan to reduce interest costs.

Costs, impacts and key risks at a glance

Can you qualify?

Eligibility for high-mileage finance is shaped by the car’s age, condition, and documentation as much as your credit profile. Lenders often set caps such as maximum age at agreement end, or a total mileage limit. A comprehensive service history, recent MOT, and a clean HPI check can materially improve your chances. If the car has significant aftermarket modifications or recorded damage, some lenders may decline.

Your own affordability carries the most weight. Expect checks on income, expenditure and existing credit commitments. A stable address history and entry on the electoral roll help. If your credit is thin or patchy, a higher deposit or shorter term can sometimes offset risk. Using a broker like Kandoo can broaden your options by matching you with lenders comfortable with older, higher-mileage vehicles without multiple hard searches.

If a lender will not fund the exact car, consider a close alternative with better documentation, or adjust the loan structure. Smaller amounts, lower LTV and clear evidence of maintenance can turn a borderline case into an approval.

How the process works

1. Decide budget and monthly comfort zone.

2. Shortlist cars with strong service history.

3. Get a broker-led soft search quote.

4. Compare APR, fees and total payable.

5. Arrange inspection and independent HPI check.

6. Pay deposit and finalise the agreement.

7. Collect the car and confirm documents.

8. Set aside a maintenance contingency fund.

Pros, cons and considerations

Before you commit

Budget beyond the monthly payment. A low purchase price can be offset by tyres, brakes, suspension and routine servicing that arrive sooner on a high-mileage car. Ask for maintenance invoices, not just a stamped book, and review consumables due within 12 months. If you can, book an independent inspection and verify the MOT history for advisories that repeatedly return.

Compare quotes on a like-for-like basis, focusing on total amount payable and any fees for setting up or settling early. If a lender declines the exact car, try a near-identical example with stronger documentation. Be honest about your annual mileage and how long you plan to keep the vehicle so the term and balloon, if any, fit your intent.

Alternatives to consider

1. Buy for cash after saving for longer.

2. Choose a lower-mileage, smaller model at the same budget.

3. Lease an older vehicle through specialist providers.

4. Car subscription with maintenance included.

5. Public transport plus short-term car hire while you build savings.

Frequently asked questions

Q: Can I get PCP on a car with over 100,000 miles? A: It is unlikely. PCP depends on a predictable future value. High-mileage cars make that harder, so lenders often prefer HP or personal loans.

Q: What deposit will I need for HP on an older car? A: Many lenders ask for 10 percent to 20 percent. A higher deposit can strengthen approval chances and reduce total interest.

Q: Will the APR be higher because of the mileage? A: Often yes. Lenders price for perceived risk. Shopping around via a broker can help you find competitive terms for your profile.

Q: How can I reduce my risk of big repair bills? A: Prioritise full service history, recent timing belt changes where applicable, and an independent inspection. Keep a maintenance fund equal to several months of payments.

Q: Does Section 75 protection apply if I pay by card? A: Yes, if at least £100 of the car price goes on a qualifying credit card, you gain joint liability protection for the full amount with the card provider.

Q: Can I settle early without penalties? A: Many agreements allow early settlement, sometimes with small fees. Check the credit agreement for the exact early settlement terms before you sign.

What to do next

If a high-mileage car fits your budget and needs, compare finance options that end in ownership. Kandoo can introduce you to a panel of lenders who consider older, higher-mileage vehicles and provide quotes that focus on affordability. Get a tailored indication, review total costs, and move forward confidently with a car that suits your plans.

Important information

This guide is for general information only and is not financial advice. Credit is subject to status and affordability. Terms, conditions and exclusions apply. Kandoo is a credit broker, not a lender. Always check the agreement and costs before you proceed.