Car loan denied? | Subaru Outback Forums

So, not a crisis at all, just trying to figure out what this letter I got in the mail means.

Bought a used CPO from Subaru dealership. Put like 70% down and did a small loan through credit union. Of course, dealer did their own financing application, apparently through Wells Fargo, whom I got the letter from.

Dealer initially and incorrectly put the deal as 100% financed, and when I pointed that out to him he corrected it to match the amount I was financing through CU. This was all back on October 2.

Wells Fargo sent me a letter dated Oct 12 that they were denying the loan application submitted by the dealership.

My credit score is 855. This letter acknowledges that. They list some reasons for denial such as:

  • Loan amt compared to collateral value is too high – I assume this means they don’t do 100% financing loans?
  • Not enough accounts paid as agreed on credit file – I guess MAYBE this means I don’t have enough of a “big ticket” loan history? I’ve only ever had 2 car loans long since paid off and our current mortgage
  • No auto loan accounts reported recently

So I guess I am wondering, WHY is the dealer submitting 100% financing applications to a bank they would KNOW doesn’t support that?? Seems incredibly shady.

Is this something I should start looking into? As I said, this very letter indicates a high credit score, so not really worried, but I am not a credit score expert by any means.

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