Can I refinance a 10 year old car? (2024)

Can I refinance a 10 year old car?

Some lenders may turn you down for financing if your car is older than 10 years or has over 100,000 miles on it. Some lenders may have stricter requirements — like eight years or less than 80,000 miles. If your car is too old or has a high number on the odometer, you won't be able to refinance.

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What is the oldest car you can refinance?

While lenders don't set a minimum age, you may not qualify if you have an older car. Typically, lenders set a hard limit at 10 years old. But some may require a car under eight years old to refinance the loan.

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How to refinance a car over 10 years old?

If your car is 10 years or older, you may have difficulties finding a lender willing to refinance your loan. Many lenders set limits on how old a vehicle can be in order to qualify for the loan. If you need to refinance your older car, consider taking out a personal loan or trading in your car instead.

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Is it hard to finance a 10 year old car?

Financing an older car can be a viable alternative for some car shoppers, although it might not be as simple as financing a new one. Getting a loan can be harder, interest rates could be higher, and operating costs have the potential to offset any initial savings.

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Can a car be too old to refinance?

Can you refinance an auto loan with an older car? Yes - but only up until a certain age. Most lenders won't refinance a vehicle that is older than 10 years old or greater than 140,000 miles. Some lenders have even newer requirements, with lower mileage restrictions.

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Can you refinance a 9 year old car?

Can I refinance an older automobile? Yes. Commerce Bank finances autos that are new, used and 7 years or older. Simply apply now for a Personal Loan and wait for your loan decision.

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Can I refinance a 7 year old car?

Cars depreciate quickly, so you'll likely only be able to refinance within the first few years of owning your car. Some lenders won't refinance cars that are over a certain age or mileage. For example, some banks won't refinance cars that are older than seven years or have more than 90,000 to 125,000 miles on them.

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Can you refinance a 15 year old car?

Refinancing requirements

Age: Most lenders require that your car is no more than 10 years old. But if you are refinancing for a second, third or even fourth time, your car's age may exceed the limit, making it ineligible for refinancing. Value: The vehicle should not be worth less than you owe on the loan.

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Is it smart to refinance a car?

Refinancing and extending your loan term can lower your payments and keep more money in your pocket each month — but you may pay more in interest in the long run. On the other hand, refinancing to a lower interest rate at the same or shorter term as you have now will help you pay less overall.

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Does it cost money to refinance a car?

You might have to pay fees

And your refinance lender could have application or origination fees. Your current lender might also charge a prepayment penalty for paying your loan off early, although prepayment fees aren't as common as they used to be.

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Is a 10-year-old car too old?

A car that is ten years old might be perfectly fine for your needs, but chances are if you are looking at a car that is over 20 years old, you will find more problems than it's worth.

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Is buying a 10-year-old car too old?

Is a 10-Year-Old Car Too Old? Cars over 10 years old can still be reliable. Most vehicles can last well over a decade with proper care and maintenance. In fact, the average car on U.S. roads is now 12.5 years old, according to a study from S&P Global Mobility.

Can I refinance a 10 year old car? (2024)
Is it better to buy a 10-year-old car?

Today, buying 10-year-old used cars definitely makes sense, provided you keep a few parameters in mind. Why buying a 10-year-old used car is a good idea? Budget is the primary reason why you should consider a 10-year-old vehicle. In its first year, a new vehicle loses almost 20% of its initial dollar value.

What disqualifies you from refinancing a car?

A loan-to-value ratio over 100% means you owe more on your loan than your vehicle is worth. An LTV over 125% can make it harder, but not impossible, to qualify for a refinance loan. If your LTV is less than 100%, your car's value is higher than what you owe on your loan. The lower your LTV, the better.

How long after buying a used car can you refinance?

Many car buyers ask, “when can I refinance my car” and “how long should I wait to refinance my car?” From a practical standpoint, you may need to wait at least two to three months to refinance a car loan after purchase. During the first few months of a car loan the car title will be processed and transferred to you.

What happens when you refinance a car?

Refinancing your car means replacing your current auto loan with a new one. The new loan pays off your original loan, and you begin making monthly payments on the new loan. The application process for refinancing doesn't take much time, and many lenders can/may make determinations quickly.

Is a 9 year old car considered old?

But even for insurance and registrations, there's no straightforward answer, as each state has its own definition of what a classic car is. A car that's only 10 years old may be considered a classic, but generally, the age of a car that is considered a classic is 15–25 years.

Does age affect auto loan?

A lender generally can't deny your loan application or charge you higher interest rates or fees because of your age. This rule applies to various types of lenders when they're deciding whether to give credit, such as an auto loan, credit card, mortgage, student loan, or small business loan.

What is a good interest rate for a car for 72 months?

What is a good interest rate for a 72-month car loan? An interest rate under 5% is a great rate for a 72-month auto loan. However, the best loan offers are only available to borrowers who have the best credit scores and payment histories.

Is 7 years bad for a car loan?

The longer your loan term — typically ranging from 24 to 84 months, or two to seven years — the cheaper your monthly payments will be. But remember, a lower monthly payment has drawbacks, including potentially costing you more over the long term. For most drivers, a long-term car loan is not a good idea.

How old does a loan have to be to refinance?

Any time for a simple or rate-and-term refinance; after seven months for a streamlined refinance; after 12 months for a cash-out refinance (can vary by lender). You must have made on-time payments for the past six months; 12 months for a cash-out refinance. After 210 days from the original closing.

Can you refinance a car loan in someone else name?

So, the short answer is yes, you can refinance a car under another name, but there are a few things to consider first. Let's dive into the requirements. The new borrower will need to qualify for a loan on their own, meaning they'll need a good credit score and a reliable income.

Is a 15 year old car considered old?

How old does a car have to be to be a classic? The starting classic car age range can generally be anywhere from a minimum of 10 to 25 years old, but there's no agreed-upon minimum age that categorizes a car as a classic.

Is a 15 year old car too old to buy?

Cars older than eight to 10 years will be a riskier option, depending on the driving and maintenance history, while vehicles over 15 to 20 are usually nearing the end of their service lives.

How many times should you refinance a car?

You can refinance a car as often as you would like to as long as there are no restrictions from your lender. However, we recommend comparing your options carefully before doing so as refinancing too often can cause a drop in your credit score.

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