1. Credit Issues: If the applicant's credit score or financial information do not meet the lender's requirements, the finance company may return the contract to the dealer. This can occur even after the dealer has submitted the contract for approval.
2. Incorrect or Missing Documentation: If the dealer has submitted incomplete or inaccurate documentation along with the contract, the finance company may choose to return it for correction before proceeding with the approval.
3. Payment Issues: If the applicant has made any outstanding payments or has a negative payment history, the finance company may return the contract to the dealership until these issues are resolved.
4. Vehicle Concerns: In rare cases, if there are any issues or concerns with the vehicle itself that the finance company becomes aware of, they may return the contract and advise the dealer to rectify these issues before the approval process can continue.
5. Change of Terms: The finance company may have changed its terms and conditions during the time between the submission of the contract and their review, which could lead them to return the contract for negotiation or adjustment before approval.
6. Compliance Concerns: If the finance company identifies potential compliance risks or violations in the contract or the dealership's practices, they may return the contract to ensure adherence to regulatory guidelines.
7. System Errors or Delays: In some instances, technical issues or delays in the finance company's processing systems can lead to the temporary return of a contract to the dealership for further review.
It's important for the dealer to communicate with the finance company to understand the specific reason for the contract's return and address any necessary corrections or adjustments promptly to ensure the successful processing and approval of the loan.
