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Why Would I Be Refused Car Finance?

So, you’ve applied for car finance on your dream car and been rejected. You have no idea why you’ve been rejected and you’ve been given no explanation. There are a variety of reasons as to why you will have been rejected for car finance. With Hippo Motor Finance, we offer packages that allow you to get a car and a finance deal together and you can enquire today to see if we would accept you.

If we don’t, you can try and sort any of the following and apply again.

The reasons why you would be accepted

These are the reasons why you could have been rejected for car finance. Some of them are simple and quick to fix. Others will take hard work and time to do. And one is just about waiting because that is all you can do.


If you are one of those people who learnt very early on like having your first driving test on the day you turned seventeen and learnt it all and passed your test, then well done. Unfortunately, finance agreements cannot be offered to those under the age of 18, so whilst you have passed your test at 17 and are legally able to drive, you cannot legally sign up for a finance agreement on a car.

This is the one where you simply have to wait until you turn 18. There is nothing else you can do. It doesn’t matter how much you earn, or have ready as a deposit or anything other than you are not old enough.

Sign up to vote

In most cases, you have to be signed up to the Electoral Register in order to be accepted for car finance. This is so the finance company can identify you and match your identity to your address. You don’t necessarily have an interest in ever voting or wishing to serve on a jury, but if you wish to be accepted for a car finance agreement, you need to sign up to the Electoral Register.

Employment status

You don’t necessarily have to be employed to get car finance. Obviously having a steady income from work would be a dramatic help, but it is not a necessity. If you are on benefits and regularly receive a monthly amount, that should be adequate for applying for car finance.

As long as you can prove that you can pay the monthly payments, your employment status should not necessarily get in the way. However, that is a decision for the lenders to make, but if you are on benefits and do receive a regular monthly amount that can cover the cost of the car, then do apply.

Poor credit

The biggest factor in whether or not you are accepted for a car finance agreement is your credit rating. The better the credit rating, the more likely you are to be accepted for car finance. This is because your credit rating gives the finance companies an idea of how much of a risk you are to lend money to. The better the credit rating, the less of a risk you are.

That means that if you have a poor credit rating, you will be seen as a higher risk by finance companies and therefore more likely to be rejected. If you have been rejected, the likelihood, if none of the other factors applies, is that you either have poor credit or not credit history at all.

With Hippo Motor Finance, you can apply for bad credit car finance. Our staff will be able to consider whether you are eligible for car finance for bad credit. If you have been rejected by other finance companies, enquire with us and we will see how we can help you get a car and a finance deal as one complete package.

Representative Example of Credit

We expect more than 51% of our customers to achieve this rate.

Loan Amount Total Cost of Credit Representative APR 60 Monthly Payments Deposit Amount Loan Term Total Amount Payable
£7,500 £3831 19.1% APR £188.85 £0 60 Months £11,331

We are a broker not a lender and our registered office is Trident Park, Trident Way, Blackburn BB1 3NU. Our contact number is 01254 919000

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