Does Mileage Affect Your Ability to Refinance Your Car | Mileage and Vehicle Age Impact Loan Terms

When it comes to refinancing your auto loan, most people focus on their credit score or current interest rate. But one factor that often gets overlooked? Your car's mileage.

Yes, just like a car’s value drops over time, your refinance options can shrink as the odometer climbs. But how much does mileage really matter—and what can you do if your vehicle is aging?

Let’s break it down.

Why Mileage Matters in Auto Loan Refinancing | Mileage and Vehicle Age Impact Loan Terms

Lenders see high-mileage vehicles as higher risk. The more miles on your car, the more likely it is to experience mechanical issues or depreciate below the remaining loan balance. That risk can affect:

• Loan Approval: Some lenders have a hard cap on mileage—often between 100,000 to 150,000 miles. If you're over the limit, you might get declined.

• Interest Rates: Even if you’re approved, a high-mileage vehicle could mean higher rates, as lenders adjust for perceived risk.

• Loan Term Options: You may be limited to shorter terms, which could impact your monthly payment flexibility.

How Vehicle Age Factors In

Mileage isn’t the only number lenders care about. The year your car was made matters too. Older cars (usually more than 10 years old) can be harder to refinance, especially through traditional banks. Even if it runs like new, the age alone might limit:

• Loan-to-value (LTV) calculations

• Eligibility for refinance programs

• The ability to add optional protections like GAP coverage or vehicle service contracts

What About GAP and Vehicle Protection Plans?

Let’s say you can refinance a high-mileage or older vehicle—what about bundling in extra protection?

Here’s what you should know:

• GAP Insurance: Many GAP providers have age and mileage limits. A car over 7 years old or above 125,000 miles may not qualify.

• Extended Warranties / Vehicle Service Contracts (VSCs): Most reputable VSCs cap eligibility at 120,000 to 150,000 miles. If you’re under that, you can often still add coverage when refinancing.

So, if your vehicle is approaching these thresholds, now may be the time to refinance and bundle protection while you still qualify. Remember mileage and vehicle age impact loan terms.

Tips for Refinancing a High-Mileage Vehicle

If your car is creeping toward retirement age, don’t panic. You still have options:

1. Work with a specialty lender or refi platform: Companies like Digital Auto Refi Co. specialize in helping people refinance cars banks might turn away.

2. Consider shorter terms: A 24- or 36-month loan may be more accessible than a 60-month one.

3. Refinance before it's too late: Timing is key—refinancing at 95,000 miles is a lot easier than at 155,000.

4. Add protections now: If you want GAP or a VSC, don’t wait until your car is too old or has too many miles.

5. Use your equity wisely: Even with higher mileage, if your car has equity, you may be able to pull cash out to pay down debt, fund repairs, or boost your emergency fund.

Bottom Line

Mileage and age absolutely affect your ability to refinance—but they don’t automatically disqualify you. It’s all about working with the right partner and acting before you cross certain thresholds.

So if you’ve been thinking about refinancing, don’t wait until your odometer hits six figures. You might still have time to lower your rate, reduce your payment, or protect your ride—even if it’s not fresh off the lot.

Need help navigating high-mileage refinancing?

Contact us today or check if your vehicle qualifies with our 60-second quote tool.

@digitalautorefico - Text us (603)736-5748