Can you be denied for a car loan after you've taken possession of a vehicle?

I got financing through a dealer for a used Lexus. Two weeks after driving the car off the lot, I got an adverse action notice in the mail saying I've been denied the loan. Why would this be? Can I actually be denied financing after taking possession of the car?

Answer
“What you’re talking about is called a spot delivery. It’s when the dealer gives you the keys to the car before your financing is approved. It’s fairly common in the industry.
Your adverse action letter means that you’ve been denied the specific terms of a loan. Maybe the lender wanted a higher interest rate or a shorter term.
Even so, it doesn’t mean that all of your financing options were denied. It just means that one of them was. Most dealerships look into multiple financing options in case of a situation like this.
Do you have the title yet? If so, check to see who the lienholder of your car is. That lienholder is the entity that lent you the money. Call them to see if there are any issues with your loan.
If you don’t have the title yet, you’ll need to reach out to the dealership to find out what will happen next.
Don’t forget that when you buy a new vehicle, you will need proper coverage. If you haven’t already found insurance, use the free Jerry app to help you find the best deal. Jerry compares rates from the top 50 companies in under a minute, delivering the best deals to your phone.”
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Eric Schad
Answered on Aug 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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