Factors that Can Affect Your Ability to Get a Car on Finance


Getting a car on finance is a common way for individuals to acquire their dream vehicles without having to pay the entire cost upfront. However, several factors can influence your ability to secure financing for your new ride. In this blog post, we will explore the key factors that can affect your chances of getting a car finance.

Credit Score

Your credit score is one of the most critical factors that lenders consider when you apply for car financing. A higher credit score demonstrates responsible financial behaviour, making you a more appealing candidate for loans. A good credit score can secure you lower interest rates and better loan terms. Conversely, a poor credit score can make it challenging to obtain financing, or you may face higher interest rates, which can significantly impact the overall cost of your car.

To improve your chances of getting car financing, it’s essential to maintain a healthy credit score by paying bills on time, reducing outstanding debt, and monitoring your credit report for inaccuracies.

Income and Employment Stability 

Lenders want to ensure that you have a stable source of income and repay your car loan. They may assess your employment history and income stability. Frequent job changes or a history of unemployment can be red flags to lenders. A steady job and a healthy income stream can boost your chances of securing financing.

Down Payment

The amount of the down payment you can make plays a significant role in your ability to get a car on finance. A larger down payment reduces the amount you need to borrow, which can make you a more attractive candidate to lenders. It also demonstrates your commitment to the purchase, which can work in your favour. If you can make a substantial downpayment, you may be more likely to get favourable loan terms.

Debt-to-Income Ratio

Lenders evaluate your debt-to-income ratio (DTI) to gauge your ability to manage additional debt. If your DTI is high, meaning you already have a significant amount of debt relative to your income, it may be challenging to secure car financing. Kender generally prefers borrowers with a lower DTI, as it indicates that they have the financial capacity to handle another loan.

To improve your DTI, consider paying down existing debts before applying for car financing. This can increase your chances of getting approved for a loan.

Vehicle Price

The price of the car you want to finance can also affect your ability to secure financing. Lenders may have restrictions on the maximum loan amount they are willing to offer, and this amount may not cover the entire cost of the car. If the vehicle you desire exceeds the lender’s maximum load limit, you’ll need to come up with a larger down payment or explore other financing options.

Lender’s Polices

Different lenders have varying policies and requirements for car financing. Some may be more lenient than others, and the specific lender you choose can influence your likelihood of getting approved. It’s essential to research and compare different lenders to find the one that best suits your financial situation and credit history.


In conclusion, there are a number of factors that can impact your ability to get a car on finance. Getting in touch with a Car Finance broker, such as Enjoy Finance, could help you be accepted for car financing with more ease. However, by understanding these factors and taking steps to improve your financial situation, you can enhance your chances of securing car financing.