“I want a new car, but I can’t get financing . ” Probably this dilemma is disrupting your life, isn’t it? If you came up with this text, you may have already gone to a dealership or tried to simulate some financing on some car sales website, but you have come across the deal refusal. But after all, what may be happening to you?
It is quite common to hear reports from friends saying, “I can’t get funding.” This phrase is often accompanied by another phrase: “but I have a clean name . ” This question is much more common than you might think, however, even with the clear name, many people can’t afford a vehicle or other good. There are different factors for a loan to be approved and if you are on the list of those people who have the “I can’t get funding” flea, one of these criteria must not be met.
Want to know what you need to get funding? So keep reading this text and learn what influences when it comes to getting approved!
1 – “I can’t get car financing”: Is your name clean in the square?
If you are in dire need of buying a car but have debt and restrictions, the desire may have to be delayed. This is the clearest criterion for you having trouble getting funding. Having a restriction on the SPC or Serasa, unfortunately is the determining factor for your credit application even go through analysis. Regardless of whether you have income or offer a good down payment, if your name is dirty, you will not automatically be able to finance a new car. The best in these situations is before you even try to get a loan, look for your local CDL and check on your situation. If you have any issues, use that money saved for the car and pay off your debts.
Many people think that if they spend this reserve, they will not be able to negotiate a loan. However, in some cases the only negative factor is the old backlog. Maybe this is your situation. There are currently several payment conditions, many with very low inflows . So if you are looking for a loan but the name is dirty, try to clear it and then renegotiate the dream car. If you meet the other requirements below, you will probably be able to.
2 – “I can’t get car financing”: how is your income power?
The buyer power of income is a major influence on the approval of buying a car. Financing a vehicle requires an income and some requirements. To prove it, there are a few ways: if you have a signed wallet, simply present the paycheck. Now if you are self employed, you need to provide income through bank transactions.
You may be asking, “I have a clean name and income, but I still can’t get funding . ” Unfortunately, it is not enough to have these characteristics for a vehicle’s finance. You need to know that for the bank to approve a credit on your behalf, it is important that the installment commits a maximum of 30% of what you earn. Many people end up being turned down for it. So when trading a vehicle, look for those conditions with installments that fit your purchasing power and do not exceed that set percentage. In practice this may occur as follows:
– Suppose you earn $ 1,000 a month. The maximum amount you can spend on your new vehicle installment payment is up to $ 300.
However, whether you are a CLT, self-employed or self-employed, you can declare a higher income as long as you can prove it. Increasingly, workers earn a variable monthly income from owning rented property, receiving pension, sales commission or even working as freelancers. However, be very careful to evaluate your ability to keep paying the loan until the end of the contract.
3 – “I can’t get car financing”: How is your credit history?
We often say that having a good relationship history with your bank is opening doors for the future . Banks and lenders have interconnected systems, so if your accounts are up to date, you have already made a loan or other loan, and you have been able to pay on time, you are more likely to get a loan. Now, if you already have a history of debt, arrears and backlogs, perhaps even having all the above requirements, you may face difficulties and may not be able to finance a car.
4 – “I can’t get car financing” – How old are you?
Yes, your age also counts on the credit rating for vehicle finance. You must be at least 18 years old and at most 70 years old. But be aware that few loans are approved for people under the age of 20 – unless you get a guarantor . The reverse also occurs. Those over 70 may even get a loan, but they will also need a guarantor as long as they have a first degree kinship.
When you are younger, what weighs on the difficulty of being able to approve funding is the low purchase history on your behalf. When you are over 70, the reason is similar to the health plan criteria: the older you are, the greater the propensity to develop more serious diseases.
5 – “I can’t get car financing” – which vehicle do you want?
We already mentioned above that the value of the installment influences the approval of the financing, however did you know that the brand of the vehicle and its total value also count? The chances of having your name approved to buy a more popular car , priced up to $ 40,000, are much higher.
When it comes to popular cars, it is a matter of logic: the chances of a consumer being able to repay the financing of a cheaper car are greater. On the other hand, if you are dreaming of an imported car or an SUV, banks will be more careful and thoroughly evaluate your name and your chances of getting credits.