Why auto loan refinance gets denied
Denial reasons vary by lender, but a small set of constraints show up repeatedly. Knowing them helps you diagnose what to change (or whether waiting is reasonable).
Common constraints
- LTV is too high (balance/payoff is high relative to value)
- Vehicle is outside age/mileage rules
- Loan is too new (insufficient payment history)
- Income/DTI doesn’t fit lender policy
- Documentation gaps (payoff instructions, insurance, title state rules)