Auto Loan Rejection Rates Are at a Record High — Here’s How to Improve Your Odds of Approval
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It’s a challenging time to get an auto loan if you have poor credit — but don’t lose hope of buying a car just because you got a loan rejection.
The rejection rate for auto loans is 11% this year, which is the highest level since the Federal Reserve Bank of New York began keeping track in 2013. Rejections are more than double last year's rate of 5.2%.
One reason auto lenders are less willing to approve loans is that more Americans have been falling behind on car payments amid high inflation and high interest rates. It doesn't help that car prices have skyrocketed in recent years, given that lenders associate larger loans with greater risk.
If you get rejected for a car loan, it doesn’t mean you can’t buy a car. But you may have to adjust your expectations of what you can buy or take steps to make your application more attractive to lenders.
How to improve your chances of getting a car loan
Here are some of the things you can do to get a car loan if you've been rejected:
