What to do if your car financing loan has been rejected

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So many of us rely on our cars to get us from A to B, and data from the RAC suggests that there were 38.9 million licensed vehicles in Great Britain at the end of September 2019, of which cars made up 32m, or 82.2%. One of the best ways to increase cash at hand from our cars is to borrow money against your car.

And for lots of people up and down the country, buying a new car is hugely exciting, with 2.9m vehicles registered for the first time in Great Britain in 2018. But being able to afford a fresh set of wheels is an altogether different prospect. Few are in a position to be able to pay outright in cash, which often represents the cheapest option.

Instead, the majority require funding assistance to get their hands on the car of their dreams, but even taking out a conventional loan can prove problematic for some people. So, if you fall into that category, what are the alternatives available to you?

Why might you get rejected for a conventional loan?

There are several reasons which may contribute to you being turned down for a conventional loan to finance the purchase of your car, but these are some of the most common:

  • Poor credit history, such as failure to repay previous loans
  • A lack of credit history
  • Being unemployed
  • An unsteady income stream
  • Having a County Court Judgment against your name

Some or all of these factors can act as indicators to lenders that you are not a reliable borrower of money, or that you may not be guaranteed to make your repayments on time. However, there are options that even if you have very bad credit loans direct lenders uk, there will still be a chance of getting approvals. You just have to seek the options that are available and you will get successful in getting your car.

What are the alternative options?

If you have been turned down for a conventional loan, there’s no need for undue concern as there are other methods which may be more suitable to you. These include:

    • Bad credit car loans: Companies such as Go Car Credit offer car finance for bad credit, which means that even if your credit score is not as strong as it might be, it won’t be the only factor taken into consideration when assessing your eligibility.


  • Hire purchase: This is where you pay a deposit and then make fixed monthly payments over a pre-agreed period of time. Once all the payments have been made, you own the car.
  • Personal contract purchase: Similar to hire purchase except that you are essentially borrowing the difference between the car’s value when new and its worth at the end of your repayment schedule. At that point, you can trade the car in and start the process again, hand the car back for no cost, or make one final “balloon” payment to pay off the initial valuation.


  • Leasing: You pay a deposit and then a fixed monthly fee, which can be slightly higher because all maintenance costs are covered. At the end of the leasing term, you return the car without the option to keep it.

None of the above options are guaranteed methods of finance, and are all subject to the eligibility requirements of different lenders.