Car loan declined – what now?On May 28, 2020 by admin
If you want to realize your dream of individual mobility with your own vehicle, you will be all the more amazed if your car loan is rejected. The question immediately arises as to how it can go on and whether there is still a way to change this credit decision. Since every company and every credit provider makes different and different decisions, there are definitely opportunities to enjoy mobility.
Finding out the reasons means taking countermeasures
When a car loan is refused, it can sometimes be minor things. So if you want to counteract the result of the decision, you should specifically ask and research the causes. Perhaps it is just a monthly rate that is too high that would upset the balance of the monthly household budget? Here it helps to look for an open conversation and learn details.
Sometimes it can just be because the company, regardless of the debtor’s creditworthiness, simply requires a certain amount of equity or a high down payment when the contract is concluded, for example to avoid the resale of contracts for vehicles with a waiting period. If you ask, you no longer poke in the dark and in the fog and can change the points of complaint with a changed application and, for example, suggest a longer term with a lower monthly rate or higher down payment.
Find a car manufacturer with sales problems
This tip for the procedure only applies to those whose car loan was refused because of a credit rating that is just as acceptable. This is where the search for a vehicle with a lower purchase price and thus lower risk and lower monthly rates usually helps. Very smart borrowers are also looking for a seller or a manufacturer who is under pressure due to a current weakness in sales.
For example, if you, as a car manufacturer, offer zero financing or publicly advertise vehicle leasing without an initial special payment or down payment, you obviously have to struggle with overproduction. And especially in the area of medium to not so good creditworthiness, he and his dealers can not be very picky when it comes to lending. In this case, rejected car loan also means looking for the weakest possible lender.
Choose a smaller engine variant
Maybe the loan refusal is simply because the new price of the vehicle to be financed is simply too high. This is then reflected several times in the monthly household bill: the high purchase price means high monthly installments. A heavily motorized vehicle is also more expensive to maintain and insure.
Ultimately, especially in the case of mid-range vehicles, you can significantly reduce the amount of credit and burdens if you choose a less motorized variant and thus the purchase price drops by several thousand USD. So you can realize your own dream of mobility only in a slightly slimmed down version and not in the top equipment, but you can still successfully apply for a car loan in many cases.