What to Do if You’re Turned Down for Used Car Financing

It can certainly be frustrating to apply for used car financing and be denied. However, that doesn’t necessarily mean the road ends here. Casey Toyota is addressing what to do if you’re turned down for used car financing.

Determine the Source of the Issue

Before you can address the issue, you need to understand what it is. There are a few main reasons that buyers can be denied:

• You don’t have established credit
• Your credit score is too low
• You have too much existing debt
• Your income is insufficient or irregular
• The vehicle’s age is an issue

Address the Issue

If possible, you should try to address the issue first. For example, if your credit score is too low, check your report and dispute any discrepancies. You should also try to pay down credit card balances, which can also improve your debt-to-income ratio. You may also want to add a co-signer, because their income and credit score can help improve your odds, especially if you’re still building a credit history.

Reduce How Much You’re Borrowing

You can also improve your chances by limiting how much you borrow. For starters, try to make a larger down payment, which will reduce your loan. That also helps lenders see that you aren’t overextending yourself. If you can’t make a larger down payment, consider a more affordable vehicle.

Shop Our Certified Pre-Owned Vehicles

Some lenders are hesitant to offer a loan for a used vehicle because they don’t know how long the vehicle will last. Our Certified Pre-Owned vehicles are carefully inspected and reconditioned to ensure they’re reliable. This can give lenders extra peace of mind.

Apply for Used Car Financing in Williamsburg, VA

Don’t get discouraged if you’ve been denied for used car financing. Our team can help you find an option that works for you. Visit Casey Toyota to get started today!