Dealership salesman shares what to do if you get denied a car loan

@shauonsellscars/TikTok Sergey/Adobe Stock (Licensed)

‘First-time buyers this is for you’: Car salesman shares what to do if you get denied for a car loan

‘Here’s a few things to know before coming into the dealership.”


Phil West


Getting denied a car loan might not necessarily be the end of your car-buying journey, according to a car salesman with some helpful advice.

The video, with the on-screen caption, “Got denied for a car loan?” comes from creator Shauon Rogers (@shauonsellscars). It was posted to TikTok on May 12, and since then, has generated more than 10,800 views as of Sunday.

His first piece of advice in the car-buying journey is to have proper proof of income.

“You’re going to need a pay stub, you’re going to need a bank statement or the W2 from the previous tax year,” he says, adding that those are the only three things that provide adequate proof of income.

He also reveals that it’s not just the credit score that factors into car loan availability, but in his words, “You need to have an established score to get approved. But it’s not about what the score is. It’s about what’s behind your score.”

He suggests that opening a credit card, getting a secured credit card, and opening a credit-builder account might be ways to improve one’s credit score.

He also advises that if you’re buying a car, you be ready to put down a down payment of 20%.

@shauonsellscars First time buyers this is for you #autoloans #carsalesman #freegame #dealershiplife #carsales ♬ original sound – Shauon Rogers

Getting a car loan is getting harder

NerdWallet looked into the increasingly difficult prospect of getting an auto loan in the U.S. In a September 2023 article, it noted that “the 12-month rejection rate for auto loans hit 14.2% at the end of June, according to the Federal Reserve Bank of New York. This was the highest auto loan rejection rate since 2013, when the Fed began tracking such data.”

Though there was a slight uptick in acceptances after that, the numbers still indicate that many are struggling to qualify for a car.

That article goes on to counsel, “Even if you meet a lender’s minimum income requirements, your loan could still be denied for other reasons, such as having a short or inconsistent work history, or little to no credit history. Having a high debt-to-income ratio — the amount of debt on credit cards, other loans or a mortgage compared with the amount you’re paid — is another possible reason for loan denial. Also, a loan application could be declined for something simple like incorrect or missing information in your application.”

It also suggests, “While they aren’t abundant, car-buying programs with low-interest loans do exist through nonprofit organizations in certain areas. These programs focus on vehicle ownership as one component of long-term financial stability, so there is usually a financial coaching requirement.”

It cites two specific ones: Goodwill Cars to Work, which serves residents of Kentucky and some Indiana counties, and Vehicles for Change (VFC) for residents of Maryland and Northern Virginia.

A couple of the commenters on the video brought up the possibility of getting co-signers to help qualify. One asked, “When I refinance my auto loan, could I add my sibling to the loan like a co signer?” Shauon assured that commenter with a “Yes.”

The Daily Dot has reached out to the creator via Instagram direct message and TikTok comment.

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