If you’ve applied for a personal car loan or business vehicle finance with a bank or finance company and your application has not been approved, what do you do next? Having a loan application not approved can be gut-wrenching, worrying and if a non-refundable deposit has been put on a car before the finance was secured, it could be costly.
With a car loan application not approved there can be a way through to a better outcome and securing that car loan depending on the individual circumstances. The next steps that can be taken will depend on whether it is a consumer/personal loan application or an application for business finance and on the reason why the application was not approved.
Typical for an application not to be approved include:-
- Past comes back to haunt you: bad or poor credit rating
- Haven’t had time to get started! Too young in age for an individual or too soon for a business
- It’s not you, it’s the car: lender rejects the vehicle as suitable security against the loan
- Their way or it’s not the highway, it’s good bye-way: lender won’t agree to the loan terms and conditions requested or preferred
We provide a general overview of what options could be available to overcome these issues and how we work with customers to achieve a workable car loan. The key to success can be using a car finance broker type lender such as Jade Car Loans rather than dealing with the process yourself.
As professionals with multiple lenders sources, we have both the expertise and the access to many lenders that are more flexible when it comes to dealing with the more challenging car loan applications.
Under their corporate structure and regulatory requirements, most large banks and finance companies have strict lending guidelines which their personnel must adhere to. That’s totally understandable and acceptable as we are accredited with the major banks we respect their position. We also have accreditation with smaller banks, specialist finance companies and non-bank lenders that have more leeway when it comes to negotiating to accommodate difficult loan applications.
General Poor and Bad Credit Issues
For both individuals and businesses that have had an application not approved due to poor credit, the first step can be to check your credit profile. A free copy can be obtained and the entries studied to see if there are any errors which are causing the poor rating. Information is readily available through MoneySmart on how you can do this.
Also be mindful that loan applications, whether or not they are proceeded with, are recorded by lenders on a credit profile. Multiple applications for the same loan can come across as desperate and reflect poorly on the credit profile. Engaging a finance broker like Jade to source a car loan from across multiple sources does not affect a credit profile in the way that the DIY approach does.
If even our consultants are unable to source an acceptable loan offer, those with bad credit ratings may look at taking steps to improve their rating over time and then re-apply at some point in the future. The steps may include making payments on time.
Assistance for Business Vehicle Buyers
The risk assessed with business finance is typically seen as less than the risk for personal consumer finance. As such, businesses that have had an application for car finance rejected, do have a number of possibilities available through Jade Car Loans.
- Poor Credit Car Finance: We do have lenders that consider bad credit car finance applications on an individual basis and workable offers can be achieved. A higher interest rate is to be expected and some additional conditions may apply.
- No Docs and Low Doc Motor Vehicle Finance: Structured to suit start-ups and businesses that have not had sufficient trading time to amass the financial records to fully complete a loan application.
- Used Vehicle Finance: Where an application is rejected based on the vehicle being unsuitable as security for business vehicle finance, our consultants can source quotes for an Unsecured Loan.
- Flexible, negotiable terms finance: Where an application is rejected or the applicant has not accepted an offer because the lender would not agree to their preferred terms, dealing with Jade as your broker can be a great step forward. We have lenders that will negotiate and our consultants are experts in this process and we do have extensive bargaining power in the motor vehicle finance sector.
Steps and Options for Private Car Buyers
As broker-style lenders, we do not restrict our services only to business clients. Individuals seeking loans for private vehicles are most welcome. Where an application is not approved we may be in a position to assist. Be mindful that lenders in the consumer finance sector must adhere to the laws as regulated through ASIC.
Speak with one of our consultants and we will advise you of the options to suit your individual situation. If it is a bad credit issue, as mentioned above, address your credit profile.
- Lenders cannot make a loan offer where it is deemed not suitable to that person as per ASIC rulings. That may refer to affordability based on your income/expenditure etc. You can address your debt and spending levels and to bring them into a more favourable position and then re-apply.
- Where the amount requested is the reason for the rejection, consider paying a deposit to reduce the overall amount requested.
- If the application is not approved because you’re under the age of 18, consider a guarantor.
- Where the age or condition of the car is the reason for the rejected application, we offer Unsecured Personal Loans which may suit your purpose.
Pre-approved Finance
For those considering seeking finance to purchase a new car and they are unsure if their application would be approved, speak with us about pre-approved finance.
There are a range of actions that can be taken and options available, including commercial hire purchase for business cars, to address the different reasons for a car loan application being rejected. Working with the experts at Jade Car Loans can be an important step towards a workable outcome and achieving your financial goals.
To discuss your car loan options, contact Jade Car Loans 1300 000 003
DISCLAIMER: IN REGARD TO MISREPRESENTATIONS AND ERRORS CONTAINED IN THE MATERIAL AS PRESENTED, LIABILITY IS NOT ACCEPTED. THE DETAILS AND CONTENT IS PROVIDED FOR CAR BUYERS AND INDIVIDUALS AND BUSINESS SEEKING FINANCE PURELY AS GENERAL INFORMATION. THIS IS NOT PROVIDED AS THE ONLY SOURCE OF FINANCIAL INFORMATION. ANYONE THAT CONSIDERS THAT NEED FINANCIAL ADVICE ABOUT THEIR SPECIFIC REQUIREMENTS SHOULD SEEK THEIR OWN FINANCIAL ADVISOR.
