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Car Finance Rejections Rise in 2026

Why getting approved for PCP and HP is harder this year, and what to do about it.

Rob Evans, EyeOnYourCredit.com

By Rob Evans, EyeOnYourCredit.com

Updated: July 2026 | 8 Min Read

Approval rates for car finance have dropped to their lowest level in four years as lenders tighten affordability criteria.

The Affordability Squeeze

Lenders are factoring in higher living costs when assessing disposable income. Even applicants with 'Good' credit scores are being rejected if their debt-to-income ratio is too high.

How to Improve Your Chances

Pay down existing credit card debt, ensure you are on the electoral roll, and consider a larger deposit to reduce the loan-to-value ratio of the finance agreement.