Auto Refinancing Eligibility
While different finance companies each have their own eligibility and approval requirements, there are some common prerequisites that you are likely to encounter when refinancing a vehicle loan.
- Vehicle Age & Mileage: Many auto financing companies will not refinance a loan for a vehicle that is over 10 years old or has over 100,000 miles on it.
- Loan Balance & Age: If your loan is very new (from having very recently purchased the vehicle), an approval for refinancing is unlikely. This is also the case if your loan is close to being paid off.
- Pre-Payment Penalties: If your existing car loan contract stipulates a penalty for paying off the loan early, refinancing may not be approved.
FAQs 
Who should refinance a car loan?
Anyone interested in (and eligible for) reduced interest rates or lower monthly payments may benefit from an auto loan refinance.
What are the current auto loan refinancing interest rates?
As with all auto financing, interest rates vary widely depending on credit score, vehicle age, and several other factors. Average refinancing rates span between 4.6% and 13.5%.
Is it easy to refinance a car loan?
If you and your vehicle meet the basic approval requirements, it is relatively straightforward to refinance your car loan.
Can you refinance a car with bad credit?
While there are not as many available bad credit financing options as there are for original vehicle loans, some companies do specialize in refinancing with lower credit scores.