Anonymous
Anonymous asked in Business & FinanceCredit · 2 months ago

What does this mean? “We’re unable to approve your credit application for a vehicle”?

What does this mean? I already signed papers put a down payment on my car and have had it for 2 weeks already then I get this letter in the mail.

I didnt apply for any any loan I’m financing with the dealer not my bank. And the letter is from one of my two bank accounts but I used my other bank account to write the check for my down payment. So I don’t know why my other bank account is sending me this letter. Please help I’m very confused 

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  • Anonymous
    2 months ago
    Favourite answer

    The dealer may or may not be the actual lender. It sounds like they searched multiple lenders and one did not approve you. By law they have to send the letter.

    The dealer may be carrying the loan or they may have sold it to someone else. If you have had it for 2 weeks and they have not called wanting it back you should be fine.

    Buy here pay here dealers DO carry loans but some also let other lenders handle them. It depends on the dealer. And some sell the loans but still accept payments for the real lender. You'd have to ask to know for sure.

    Some dealers will carry the loans on their own books for 4-6 months and then sell them as they will have a proven payment history and be worth more.

  • Dan B
    Lv 7
    1 month ago

    It means one of three things:

    1)  Your credit score is too low

    2)  The car's loan value is lower than the financing amouint

    3)  Your income vs debt load might be too low to sevice the car payments.

    You made two HUGE mistakes in buying the car. 

    1) You failed to secure your own financing.  If you can't get your own financing at reasonable terms, the dealership certainly can't.

    2) You took delivery of the car before your finacing was in place (called spot delivery).  You took delivery on the spot.

    ALWAYS secure your own fiancing so that you know how much your lender will loan you.  Then shop for the car.  Before putting any money down, ask  your lender what the loan value is so that you can determine how much down payment you need..  But also check the blue book value - don't over pay for a car that isn't worth scrap value.

    Now the dealership might come back with one or more options for you to take:

    1)  Sign new loan applications for a higher interest rate

    2)  Finance for a longer period

    3)  Return the car and pay a "user fee" for the period you had the car which could equal your down payment..

    The first two they will say you have to do them.  If successful will cost you a lot of interest.  The third option they won't tell you about.

    This isn't their first rodeo.  They probably knew full well that car buyers in your situation are less likely to get financed that others with better credit.

  • 2 months ago

    The dealer does not finance the loan. The dealer acts as a broker to get you a loan. They try hard to get the loan, because they want to sell the car. Unfortunately, they could not find a lender.

    You need to find a loan for the car soonest.

  • 2 months ago

    Dealers go through banks, etc. They do not carry loans themselves. Contact your dealer immediately because your car loan was NOT approved! You owe the balance on that car immediately, or find another lender, or no car for you.

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  • 2 months ago

    Maybe ask the bank  

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