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Car Loan Financing

  • Mar 21 2016

If you are looking to purchase a new (or new to you) vehicle, you will probably find financing. However, finding financing for a car loan and finding “good” financing are two different things. This is especially true of your credit score is not the best. You will likely be offered an interest rate that is significantly less than prime.

If you are denied financing for a car purchase, however, it is typically for one of the following reasons:


Car lenders look at your prior car payment history. If you have recently had a vehicle repossessed, it weighs negatively against you. Unless you are able to pay a larger down payment or you agree to a much higher interest rate, many lenders will be reluctant to make a loan to you.


If you have filed for Chapter 7 or Chapter 13 bankruptcy, it has likely damaged your credit score. Most car lenders rely heavily on your credit score in making their lending decisions. The lender will look at how long ago your bankruptcy was filed, your income, job stability and other outstanding debt in making its decision. While bankruptcy damages your credit score, it also eliminates the majority of your other debt. Thus, your debt-to-income ratio is typically very good, which lenders like to see.

Incomplete Loan Documents

It is important that you are thorough in filling out your credit application. If you fail to complete your application or provide necessary loan documents, the lender will likely deny your application for the loan.

No Credit History

If you do not have an established credit history, it can make buying a vehicle difficult. There are some “first time buyer” programs that can assist you if your situation qualifies. If you do not, you may be required to obtain a co-signor on the loan.

Car financing can be a complex matter. Many consumers are taken advantage of by fast-talking sales people. If you need assistance with your car loan, let us help. Whether you can’t afford your payments, or have already lost the car and the bank is after more, or you were in an accident and an insurance company is after you because you didn’t have enough insurance (or even no insurance), Fitzgerald Campbell handles all types of claims against you that arise from automobiles.

Posted in: Auto Loan Debt