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Financing denied after buying car?

Gladius
Frequent Contributor

Re: Financing denied after buying car?

That is terrible.  I remember way back in my younger days when my credit was less than stellar, I was able to purchase a brand new 1995 Toyota Tacoma, only to drive it off the lot with the finance manager calling me 3 days later telling me I had to return the truck.  Now lucky for me they had already junked my POS trade in so I guess they felt "guilty" and offered me another deal with a slightly used Camry Coupe.  It was actually pretty nice and I loved that car at the time.

Message 31 of 50
pcsavvy1
Regular Contributor

Re: Financing denied after buying car?

It is horrible when a car dealer takes advantage of one's desperation and bad credit.  There are good car dealers out there but they are hard to find.  I feel lucky that I have had such good experiences with my recent Honda dealer.   I like the fact that Honda Finance gave me a chance and I was able to improve my credit standing with them and get another car. 

The old adage definately applies, buyer beware when it comes to cars and car dealerships.

BK Discharge Nov 2, 2015

CS Nov 2--Sept 83
EQ 513--636
TU 481--610
EX 483--637

Message 32 of 50
Lisak2017
New Visitor

Re: Financing denied after buying car?

Hi all,  I'm in the same predicament. I was told I was approved for financing through the dealership.  I originally intended to finance with my credit union where I also have money for a down payment.  The salesman talked me into a $0 down application in order to have a higher payment so I could take advantage of  the "we make the first payment up to $800" incentive. I took the car home on 7/20 which was a Sunday. The app went in 7/21. The first denial is dated 7/26. It says my credit score is 874 but I'm denied for the following reasons:

   *time since most recent acct opening is too short

   *length of time acts have been established

   *proportion of balances to credit limits on bank/natl acts is too high

   *too few acts currently paid as agreed

The second denial is dated 7/21 and shows a score of 858.

   *proportion of balance to high credit on bank or all revolving accts

   *number of acts with balances

 

I just paid off my mortgage in half the time I contracted for and I have paid off all my loans this way, but the Experian report I just got doesn't reflect that yet.  Because of the nature of my income, I like to make sure my payments are low in case of a downturn in business.  I know I can get the loan through my CU, but what gives?

 Did the salesman try to trick me for some other reason?  I called him immediately when I got the first letter and he told me not to worry as they applied at 4 places.

thanks for any comments/advice.

 

 

 

 

 

 

Message 33 of 50
Appleman
Valued Contributor

Re: Financing denied after buying car?

The salesman is trying to make more porfit from you.

 

The car dealership makes profit from the price you pay for the car.

They make more profit from add-ons such as extended service contracts and things like paint protection.

They make profit in the finance office (this is why they are pushing you to finance at the dealer). Also they 'shot gunned' your application to multiple lenders.

 

Of note, you scores do not make sense. The top FICO score is 850 and Vanatage score is also 850. You may want to recheck your scores. 

Message 34 of 50
tydawg
Valued Contributor

Re: Financing denied after buying car?


@Appleman wrote:

The salesman is trying to make more porfit from you.

 

The car dealership makes profit from the price you pay for the car.

They make more profit from add-ons such as extended service contracts and things like paint protection.

They make profit in the finance office (this is why they are pushing you to finance at the dealer). Also they 'shot gunned' your application to multiple lenders.

 

Of note, you scores do not make sense. The top FICO score is 850 and Vanatage score is also 850. You may want to recheck your scores. 


For Fico 8 scores yes the top is 850 but there are multiple different versions of Fico not to mention lender proprietary scores. 

Message 35 of 50
Appleman
Valued Contributor

Re: Financing denied after buying car?

With all of the listed reasons for denial that must be a very different scale. I have just never seen scores like that in my time on this board.

Message 36 of 50
Firemediii
Established Contributor

Re: Financing denied after buying car?

All of the myfico  AUTO scores go to 900. 

Message 37 of 50
Appleman
Valued Contributor

Re: Financing denied after buying car?

Thank you for the correction. I do see that some score versions do go to 900. However, I have never heard of an Auto score above 850 but surley it exists.

 

It was my assumption that given the OPs denial and multiple reasons stated the Fico score would not be that high. If I am wrong, my apologies, no offense meant to the OP.

Message 38 of 50
Firemediii
Established Contributor

Re: Financing denied after buying car?

Yeah it does seem interesting but could be very new credit maybe?
Message 39 of 50
WV1
New Visitor
New Visitor

Re: Financing denied after buying car?

Hello, I recently bought a used car and about a week later got mail saying that my financing loan was denied.  This was not from the dealer, it was from a loan company. what does that mean? Does the dealer tell you when your loan got denied?

Message 40 of 50
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