Refinancing an Older or High-Mileage Car: What to Expect

If you’ve put a lot of miles on your car, you might be feeling discouraged about refinancing it. After all, many lenders put strict limits on the mileage of vehicles they’re willing to refinance. If you financed a used car, or if you drive more than the average person, you might have more miles on the vehicle than some lenders will be willing to accept.

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But that doesn’t mean you're out of options. Refinancing a high-mileage vehicle can be a little tricky, but it is possible. Learn how to refinance an older car with high mileage so you can switch lenders or lower your monthly payments.

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Key takeaways

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• Cars with above-average miles usually have a lower market value, making them a bigger risk for lenders. 
• Most lenders have mileage restrictions, but it’s possible to find refinancing offers for cars with over 100,000 miles, or for cars more than 10 years old. 
• Remember, your credit score, remaining loan balance and other factors also impact your refinance options.
• It could be worth refinancing your high-mileage car if you can score a lower interest rate or a shorter loan term.

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Why mileage matters in auto refinancing

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Lenders look at a car’s market value when assessing their risk of lending to you. An older car with high mileage has more wear and tear and is often worth less on the market than a newer car or one with low miles. A lender’s goal is to minimize their risk when issuing loans, so they’ll often cap the miles they’ll accept on a vehicle to be refinanced.

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Although this may limit the number of lenders willing to refinance your vehicle, it doesn’t necessarily rule it out altogether. There are still some lenders willing to refinance a car loan with high mileage.

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‍What’s considered high mileage on a car?

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The average number of miles driven per year is 13,476, or 37 miles per day, according to the Federal Highway Administration. If you have a longer commute or take a lot of long-distance car trips, you may rack up more than typical mileage for the vehicle’s age. 

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Some lenders limit acceptable mileage at 100,000, some at 125,000, and some accept 150,000 or more. If you want to refinance a car loan with high mileage, focus your lender search on those that offer what’s called “extended mileage car loans.” These loans are designed for vehicles with higher mileage.

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‍Factors that affect high-mileage refinance approval

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Of course, your car’s mileage isn’t the only factor that lenders consider during a refinance. They’ll also evaluate some other important elements as well, including:

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• Credit score: Lenders use your credit score to help determine your creditworthiness, or how likely you are to repay the loan as agreed. You’ll have the best odds of approval and get the best rates with a good or excellent credit score.
• Loan-to-value (LTV) ratio: Lenders also look at what you owe compared to the value of the vehicle. A high LTV means you owe a lot compared to what the car’s worth. If you owe more than the car is worth, known as being “upside down” or “underwater” on your loan, the lender may not want to approve you.
• Vehicle age: How old your car is matters, too, as it indicates the wear and tear placed on the car. Some lenders require the vehicle to be under 10 years old, while others allow for refinancing a car that’s older than that. 
• Remaining balance: The amount left on your car loan will typically need to fit within a certain range to be eligible for refinancing. For example, a lender might say you need to have at least $4,000 left on your loan, but no more than $100,000.

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‍How to refinance a high-mileage car

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The process of getting a high-mileage refinance is similar to any other refinance, except you’ll need to do a little more research to find the right lender to work with. Here are the basic steps to follow:

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1. Know your current car and loan details. Note your vehicle’s age and mileage, current lender, loan balance, estimated payoff date, and interest rate.
2. Research lenders. Look for lenders who offer extended mileage loans, or whose loan requirements fit your vehicle’s age and mileage. Some places to look include banks, credit unions, online lenders, and of course, RefiJet.
3. Compare offers. It’s always a good idea to collect loan offers from multiple lenders so you can find the best fit. Make sure you look at factors like interest rate, length of loan, origination or application fees, and prepayment penalties.
4. Complete the application. You’ll usually need to provide personal information like name, date of birth, address, and phone number. You might also need to provide financial documents to prove your income and photo ID to prove your identity.

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Whether or not to refinance a car loan with high mileage

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A high-mileage refinance could be the step you need to lower your payments and make your car loan more affordable. However, refinancing a car with high mileage isn’t always the best move. 

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Here’s when it makes sense, and when it doesn’t.

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‍When it makes sense

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Refinancing your car loan could be a good move if:

• You can get a lower interest rate
• You can shorten your loan term and pay off the loan faster
• You’ll be able to escape being underwater on your loan

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Use an auto loan refinancing calculator to see how your new loan could affect your monthly payment and the total interest you’ll pay. 

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‍When it doesn’t

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It’s probably best to keep your existing loan when:

• You’re nearly done paying it off
• You don’t plan on keeping the car long-term
• Your new interest rate is higher than your current rate
• Refinancing would put you upside down on the loan

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Although there’s no set limit to how many times you can refinance a car, keep in mind that stretching out your loan term increases your total interest costs.

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Get started with RefiJet

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Refinancing a car loan with high mileage isn’t impossible — you just need to find the right lender. Lowering your interest rate or shortening your loan term, even on a high-mileage car, could save you money or help you pay off your loan faster.

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Explore your options and compare loan offers using RefiJet. We make it easy by matching you with personalized offers from verified lenders, helping you find the right loan for your situation. Get started on your auto loan refinancing today. 

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FAQs

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What's considered high mileage on a car?

It varies by lender, but many will consider 100,000 to 150,000 (and higher) to be high mileage for a vehicle.

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Can I refinance my car loan if my car has over 100,000 miles?

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Yes. Some lenders even specialize in offering auto loan refinancing for high-mileage vehicles. Look for lenders that offer extended mileage refinancing for vehicles with 100,000 miles or more.

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Do lenders have mileage limits for refinancing?

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They do. Some lenders will cap their auto loan refinancing offers to vehicles with 100,000 miles or less. The actual mileage limit varies by lender, so make sure you check the eligibility requirements for each lender you’re considering.

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What's the oldest car you can refinance?

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While some lenders won’t refinance older cars, the age limit varies by lender. Some won’t consider vehicles older than 6 or 7 years old, while others will refinance a car that’s 11, 12, or even 13 years old.

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Are interest rates higher for older vehicles?

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Yes, you may receive a higher interest rate on a car loan for an older vehicle. That’s because older vehicles usually have more wear and tear, presenting a higher risk for the lender.