Have you been declined for vehicle finance? | Carfin | Car Finance


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5 Steps You Can take If You’ve Been Declined for Vehicle Finance

Being denied the chance to buy the car of your dreams is a disheartening and frustrating experience however, even if you’ve been declined vehicle finance, all hope is not lost. Rather view the initial rejection as the first round in a long game, than the final nail in the coffin of your dream car, as many productive steps can be taken following the rejection. So, although you may have lost the initial battle, here are five steps you can take towards winning the war:

1. Find Out Why

Pinpointing the exact reason why your application for vehicle finance was rejected is the first step towards acquiring your new car. Approaching the credit provider is a worthwhile step as they are obliged to disclose their reasons for rejection. Once you have uncovered the reasons behind the rejection, fix the problems and reapply.

2. Improve Your Credit Score

There is a good chance that your application for vehicle finance was denied due to a low credit score. Analyse your credit report to see if there are any outstanding accounts dragging it down. Try to decrease your level of debt, increase savings and, if possible, increase your monthly income. All of the above will raise your credit score and get you that new car!Read about our Top 10 ways to improve your credit score!

3. Find Someone to Stand Surety for You

If you are deemed too risky for a loan it is possible to have a friend or family member stand surety for you. This essentially reassures the credit provider that if you can’t pay off the debt, then the person standing surety will takeover the loan payments for you. On a related note, it’s also possible to put up various assets as collateral security which the credit provider can claim if you aren’t able to pay off the loan. Both these methods will go a long way towards a successful application for vehicle finance.

4. Reduce the Amount of Finance you’re applying For

If it is simply not possible to fix the problems with your initial vehicle finance application, one can simply bite the bullet and ask for a smaller loan when you next reapply. The smaller the loan is, the less risky it is in the credit provider’s eyes, meaning that it has a much better chance of being approved. So, although you will be forced to pay a larger initial deposit, one dream car is better than no dream car!

5. Employ an Expert

If worst comes to worst, it is possible to employ a professional to completely restructure all of your credit in order to improve your credit rating. This should be a last-case scenario as simple debt reduction and a planned budget is usually enough to get the job done.

Being declined vehicle finance is not the end of the road and there are in fact plenty of other paths that will eventually all result in you cruising the open highway in that brand new car!


  1. Interesting article. You’ve given some great reasons for loan denial and even better tips as to how to better our chances. I appreciate you sharing your insights with us in regards to this topic.

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