Today, getting a car is made much easier with the use of Internet and over-the-phone applications. If you’ve decided against going to a buy-here pay-here car dealer, then you will need to attempt to get a car loan from a bank. Here is what you can do to get on the road to getting your new car today:
1. First, you will need to find the car you’d like to buy. You will need to receive the details about the vehicle and its price to show to the lender for review. If the dealer you are going with doesn’t have a bank you can finance through, then you will need to go out and look for your own lender.
2. Online, you can apply for an auto loan with banks in your area or with the car dealer itself (if they have bank financing options). When you are applying online, you will have to give the make and model of the vehicle and the total price. You will then receive a finance rate, which could range between 9% and 29% of the cash price on the vehicle. You will then have to give your social security number for the lender to review your credit history. Some of these online applications will give you instant approval or denial. You can also do your application over-the-phone if the lender allows it – this too can be a quick process.
3. During the application process, you will need to provide information including your address, phone number, employer, household income, bills and personal info like your birthday, social security and driver’s license number. When you go in to finalize your loan (if approved), you will need to bring in these items as well. To show proof of income, you will need to bring in a couple of recent pay stubs and to show proof of residence; you will either bring in your lease or recent utility bill. Bank statements will also help to show your savings (cash assets).
4. If you are going with a private lender outside of the dealer, you will have to bring in a paper with all of the details about the car you will be buying – this includes make, model, color, VIN number, total price and dealer information. Once everything looks good, you will begin signing the contracts and finalizing other paperwork.
Your auto loan approval will be based on your credit history and whether or not you are a financial risk. It is a good idea to check your credit report before applying for a loan, so that you can know what’s on there. See if there are any items you can get paid off and cleared before applying, so that your interest rate won’t soar because of a low credit score.
Once you get a car, make sure to take good care of it just like you do your body. You can find great deals on Groupon from brands like ACE Fitness and Auto Zone.