Skip to content

Vehicle Loans & Estimated Mileage

Answered by: 

Question: 
We have been experiencing some losses when we repo vehicles because of the high mileage on them. When we are looking at approving a loan applicaton secured by a vehicle, can we take into consideration the amount of miles the customer would put on the vehicle in a year by looking at their home address compared to their work address? And if high, require more of a down payment or less amortization period?
Answer: 

I'm not sure that is the best predictability method for mileage, but I know of no prohibition.

Were it me, I would consider more the mileage they indicate to their insurance company as what they anticipate driving. If that is projected mileage or to and from work, it might have more meaning.

First published on BankersOnline.com 11/5/01

First published on 11/05/2001

Filed under: 
Filed under lending as: 

Search Topics