Why did I get denied for a used car loan but approved for a new car loan?

I applied for two loans at my credit union. I got denied for a used car loan, but they accepted me for a new car loan. Why would this happen?

Answer provided by
Eric Schad
Answered on Jun 11, 2021
“Different lenders have different criteria for approval, so there’s no straightforward answer unless you ask them directly, which is exactly what you should do.
My guess would be that your credit union assigns more perceived risk to used cars than new cars, especially if the used car is from a private seller.
So again, ask them why that would be. They might just have different criteria for each loan, or perhaps they made a mistake or clerical error.”

Did this answer help you?

Ask us a question by email and we will respond within a few days.

Have a different question?

You can meet us at our office and discuss the details of your question.

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies