EchoBay Expert: I'd like to apply for car loan refinancing but I don't think my car qualifies because it is 5 years old and has 130,000 miles. What cars will a lender qualify for refinancing?
Loyal Reader: Even though your car is five years old and has 130,000 miles on it, if it's worth more than $5,000 it is likely that you may still be able to qualify for car loan refinancing as long as your loan amount falls within the lender's dollar limits and you meet their lending requirements (income, credit, etc).
You will generally need to owe at least $5,000 on your car in order for an auto loan refinance company to consider refinancing your existing auto loan, although in Arizona the minimum requirement is set at $10,000.01. Almost all non-commercial cars will qualify for an auto loan refinance. Exceptions to this rule are salvage vehicles, vehicles that have been rebuilt, motor homes, campers, conversion vans, fleet vehicles, taxis, limos, commercial trucks, or passenger cars that are used for business purposes.
As long as you don't fall into any of those categories, you should be in the clear. Even if you're leasing your car, you may be able to work with a lender that will refinance a lease buyout. The key is working with a lender whose car refinancing programs will meet your needs.