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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?"

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“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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