You want to get a car but unfortunately, you cannot afford it. Your last resort is to apply for a car finance, and you’re getting hyped up for it. After a few minutes, your agent tells you that you cannot be approved to get a car. You start to get baffled and confused, and you go completely berserk on your agent.
This is a scenario that can possibly take place when applying for a car finance, so you have to do your research before doing so. We’ve compiled the reasons why your car loan application can get rejected, all you have to do is read on.
1. You do not have a stable income
Most car finance companies require their customers to have a stable income. You have to at least have a stable job or a business, one that would allow you to pay for a car each week, fortnight, or month. This helps the company become at ease and confident that you can pay the promised amount consistently.
2. You are coming to the wrong car finance company
Before even considering on buying a new car, you should at least do your homework and see which ones you should consider getting a car from. Make sure to come to a car finance company that can help you get the right car for you. Take Alpha Finance for instance; we help people with bad credit, part-time workers, single parents, and students get car finance and car lease in Brisbane as long you pass the affordability assessment. We give every Australian a second chance at car finance, so maybe you’d like to give us one, too?
3. Incorrect Information
Your lender will check and verify every single detail about you, including your address, phone number, loan record, and debts, to make sure that you can pay your car loan religiously. They have the right to, anyway, as they are going to be lending you money. Make sure to give out the correct information, spell every letter out, and check thrice to see if you’ve got everything right. You do not want to be rejected just because you gave the wrong name or phone number.
4. You are deep in debt
You should, of course, pay off every loan that you have before deciding to get a new car. If the car finance company finds out that you have several unpaid debts to your name, then they definitely would not grant you a car. Paying your debts on time indicates that you are responsible, and that you can handle the pressure of getting a new unit.
5. Trying to go overboard
If you are asking for an expensive unit, yet you are not earning enough, then you will for sure, be rejected. Take your pay and your budget into consideration, ask the agent which car would be the best option for you, and be contented with it. You can consider upgrading once you have enough budget for it.
Car finance can be tedious and exhausting, but it need not be, if you follow the rules and research enough. We are always ready to help you out with your car finance needs, so do not hesitate to come to us!