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Why are my electric car loan applications always rejected?

Why are my electric car loan applications always rejected?

Are your electric car loan applications constantly being turned down, and you aren't sure why?

We are going to cover some of the variables that lenders look at when making the decision of whether they will approve a car loan.

Where are you applying for your electric car loans?

If you are applying online or at your local bank, that could be the main reason your applications are not being approved.

These websites and banks tend to focus on a very specific type of customer profile.

You need a high credit score, solid income, and other requirements to secure a car loan from these lenders.

Anyone who does not meet these requirements is automatically rejected, no if's, ands, or buts.

Were you recently involved in a bankruptcy or consumer proposal?

There is no shame in needing a second chance. The economy is going through some challenging times with Covid, and now a recession is fast approaching if you fell on tough financial times and had to go through a consumer proposal or bankruptcy to get back on your feet, kudos to you for making a tough decision.

Even though you just completed the bankruptcy or consumer proposal, there are some lenders who will automatically reject your application.

It's nothing personal; in fact, chances are that no one has actually seen your application; a computer simply auto-rejected it.

How long have you been working at your current job?

There is a tremendous amount of shift taking place in the Canadian economy, especially with the Great Resignation gaining momentum.

If you are just starting a new job or have been there for less than six months, most lenders will not approve the loan.

This is nothing personal; the lender is just being extra cautious because of the tough times being faced in the economy.

Do you have a low credit score?

If your credit score is under 620, most lenders will not approve a loan, you will need to go through a subprime car loan provider.

They don't advertise online, at least not the good ones. We will show you how to access these subprime car loan providers.

How to get approved for a car loan today

Regardless of the reason why you were rejected, no one likes to be rejected.

What you should do in this type of situation is look for a local dealership in your community, one that specializes in second chance financing.

The dealership will already have a network of subprime lenders they work with on a regular basis.

After the dealership clearly understands your situation, they will go to the lender that will give you the best terms.

You will be charged a higher interest rate than someone with perfect credit, but the dealership can get you approved today.

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Categories: EV motoring