15 Reasons Why It's Hard to Find a Car Loan

Having trouble finding car financing? Have you been turned down recently? It could be because of any of the 15 items below.

Before you read the list, know that all of these situations are familiar to our auto finance experts, and we can help you even if you check "yes" to one or more of these items!

1. Poor credit history: A history of late payments, defaults or bankruptcies can make it difficult to obtain auto financing.
2. Insufficient income: Lenders may reject applicants whose income is insufficient to cover car loan payments.
3. Unstable employment: Lenders prefer borrowers with stable employment and steady income. Frequent job changes or periods of unemployment may result in loan rejection.
4. High debt-to-income ratio: A high debt-to-income ratio indicates that a person has too much debt in relation to their income, which can make lenders reluctant to approve the loan.
5. Limited credit history: Lenders may be reluctant to lend to applicants with little or no credit history because it is difficult to assess their creditworthiness.
6. Previous repossessions: Repossessing a vehicle in the past can significantly reduce an individual's chances of obtaining auto financing.
7. Negative equity on a trade-in: If a person owes more than their current vehicle is worth, it can be difficult to obtain financing for a new car.
8. False or incomplete information on the application: Providing inaccurate or incomplete information on the loan application may result in a denial.
9. No down payment: Lenders may require a down payment as a sign of commitment, and the absence of a down payment may hinder loan approval.
10. Short loan term: Lenders may reject a loan application if the requested term is too short, as this can result in higher monthly payments and increased risk to the lender.
11. High loan amount: An unusually large loan application may be considered risky by lenders, resulting in a denial.
12. Unpreferred or subprime credit: Borrowers with credit scores in the unpreferred or subprime range may have difficulty obtaining auto financing due to their higher risk profile.
13. Self-employed: Self-employed individuals may have difficulty obtaining auto financing because their income may be considered less stable or predictable than that of traditional wage earners.
14. No co-signer: Lenders may require a co-signer for borrowers with poor credit or other risk factors. If an applicant cannot provide a co-signer, auto financing may be denied.
15. Recent missed payments: If a borrower has recently defaulted on other loans or lines of credit, lenders may be reluctant to approve auto financing.

That's a lot, right? Want some good news? There's a good chance we can still help. Our expertise in auto financing, our array of partners, and our privileged relationships with them allow us to offer programs tailored to your unique situation.

Let us help you find the right vehicle, at the right price, with the best financing terms!