There is a possibility that if you apply for an auto refinance loan for a car of a certain age or mileage, it will be turned down.However, there are times that the same scenario might result differently. If you’re looking to refinance a car that has seen better days, you may want to read into how to get an auto refinance loan:
Usually, when a loan company looks at financing a car, it takes into consideration:
- The age of the car
- How many miles the car has it has on it
If the car is over 5 years old, it may be a bit difficult to secure a loan. Likewise, if it has over 100,000 miles, the lender knows that the life of the vehicle is dwindling and may not want to put money into financing it.
The same goes for refinancing the loan. Depending on when you bought the car, or plan on refinancing the loan, you may have a difficult time doing so. For instance, if the car was already used when you originally financed it, and then 3 years later you decide you want to refinance it (now it is a 6-year-old car with 115,000 miles), a lender may decide to reject the request. However, if only one of the factors is over the top (ex. 4-year-old car or 50,000 miles), you may get refinanced.
Do Your Research
There isn’t a tried-and-true formula for determining whether you’ll be approved. It’s mainly up to you to call around and ask questions from different lenders. You may get different answers every time, but if you don’t call to ask whether you can refinance your auto loan, you’ll never know!
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