Can I turn down a car loan that I was approved for if the vehicle doesn't pass an inspection?

"I want to buy a car from a private seller, but I have reservations about doing so. I was approved for a $10,000 car loan from my credit union already.

What I want to know is: can I turn down the car loan if the vehicle doesn't pass the inspection from my personal mechanic? Will this hurt me in any way?"

Answer
“You definitely can turn down the car loan if you’ve already been approved. Just note that you’ll take a slight hit to your credit score because the lender has run a hard inquiry on your credit.
Until you’ve signed on the dotted line for the loan and given the check to the seller, you’re under no obligation to make the deal.”
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Eric Schad
Answered on Jun 02, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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