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
“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.”
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Eric Schad
Answered on Jul 27, 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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