Some Cars Can't be Refinanced

Although the economy is on its ways back to recovery there are many people that are still suffering from the recession. They are finding themselves in financial situations they never dreamed they'd be in like not being able to afford their mortgage or car loan. So, what do they do? They refinance, but unfortunately, there are some cars that can't be refinanced.

• Older Cars - Most refinancing companies want to offer a loan for cars they could get something out of should repossession happen. Because cars depreciate every day, refinancing an older car may result in an upside-down loan, meaning the car is not worth as much as the loan. For this reason, most lenders will not look at a car that is more than seven years old.



• Salvaged Cars - This is a car that has been deemed a total loss by the insurance company. Most states consider this a car that has incurred damages worth 75% or more of the car's value. In order to refinance a car with bad credit you must have a vehicle with a clean title which means it has not had any past repossession, major accident damages, water damage, etc.



• Customized Cars - Many cars - especially sports cars - are modified from the engine down to the wheels. This makes your car worth less because there is no telling if there will be another buyer that has the same taste. Because of this many refinancing lenders will steer clear of your vehicle.



• Commercial Cars - These are vehicles that are strictly used for work purposes which means they endure a lot more than a personal vehicle would. They are drove longer distances, haul heavier loads, and generally maintenance is not kept up as well. For these reasons their worth is very low, and therefore not enticing for the lenders.

If you can no longer afford your monthly payment, or you simply want to pay the loan off faster apply online today to see if you pre-qualify. At SmallerCarPayments.com we have a nationwide network of lenders offering competitive and affordable auto refinancing rates for all types of credit. You could be on your way to savings in a few short days!