What should I do if I was "approved" for a loan through the dealer, but then I got a letter saying I'm not approved?

I was approved for a loan through the dealership on my new car, and I even made a $5,000 down payment. A week later, I got a notice from a bank that my loan application has been denied and I'm not approved for the loan. What should I do?

Apr 27, 2021
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Eric Schad
Answered at Apr 27, 2021
“Unless a dealer has their own financing department (it appears as though that isn’t the case here), they send your loan application to numerous lenders.
While these lenders will approve strong applications, they may have borderline cases such as yours where they’re on the fence about approval.
However, the dealership usually gives them enough business that the lender will often approve these applications or overturn a denied application, simply because it’s beneficial for them to do so.
Therefore, you might want to call the dealership and ask them what’s going on with your loan application. You might need to reapply for financing or shop around on your own.
Or it could be nothing at all. Don’t panic until you have all the facts.”
Car Loans
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