There are several reasons why a person may not get approved for a car loan. However, it is generally a combination of factors which ultimately lead to being denied for an auto-loanOne factor is length of employment. Often, if the borrower has been employed at a job for less than three months his or her income may seem unreliable.
Another factor affecting approval is monthly income. If the borrower does not make enough gross monthly income to cover auto-loan payments as well as other expenses, approval is unlikely. On the same note, income that comes from social government programs or unreliable sources may also be denied. Where the borrower lives can also affect their approval likelihood; for instance, living in a remote area without any dealerships near enough to offer programs (although with Canada Drives new programs now offered in every province this is less of a concern).
Finally, a person can have bad credit even after having paid off outstanding debts. A borrower may not be denied because of his or her credit score, but rather due to outstanding payments with other lenders. To increase the chances of getting an auto-loan, ensure all previously unpaid debts are covered. As previously mentioned, any one of these factors can lead to a denied loan request, but it is a combination of them that will most likely result in an unapproved loan application.
Canada Drives works hard to maximize the amount of customers that are getting approved each month in Canada. With our vast network of partners and access to unique programs we like to think we are the easiest way for a person regardless of their situation to get driving a great vehicle.