What’s The Process Of Getting An Auto Loan
Buying yourself a car? Approved Cash can help you.
What is an Auto Loan?
Cars are expensive machines. Some people buy cars outright with cash, but that’s not realistic for many.
Auto loans help people get into safe, reliable automobiles that get them where they need to go. These loans typically last 4-6 years.
Auto loans are secured loans. This means your car is the collateral. In the worst case, if you’re unable to pay your loan, the lender has claim to the vehicle. In most cases, your debt will not go to collections.
Should I Get an Auto Loan?
Not all car buyers need to get a loan for their vehicle. If you save up enough for a cash purchase, you’ll save on interest payments.
This situation is common if you’re purchasing a cheap, used car from a private seller.
Most people aren’t able to save enough by the time they need another car, though. Plus, you want your vehicle to be safe and reliable. Buying cheap, used cars can be risky in this area.
So if you can’t save enough cash to get a reliable vehicle, an auto loan might be right for you.
How Do I Get an Auto Loan?
Before you get the auto loan, you’ll first need to pick the car you want and find out it’s price.
Then, you’ll have to save for your down payment.
Common financial advice says to put down 20% of the car’s purchase price up front and take out an auto loan for the rest. If you put down more, you won’t need as large of a loan to cover the rest.
Once you’ve found a car and saved for your down payment, head to our home page and submit your request through our form. Just tell us your name, the loan type (auto purchase), the loan amount, and your contact information (email and phone number).
Our system will match you with a lender within 24 hours.
Once our system finds you a local lender, you will speak to the lender about your loan details. After finalizing your loan terms with the lender, they will send the loan funds to you via check or direct deposit into your bank account — whichever way you prefer.
Now, pay for your car with your loan funds. You’ll then start paying back your auto loan to your lender with fixed monthly payments.
What Do I Need to Get an Auto Loan?
Since auto loans are a larger type of loan, lenders will ask for a wide range of documents.
First of all, you’ll need to provide your Social Security number and proof of your income. You can use pay stubs for proof of income — and in some cases, tax returns work as well.
Other pieces of information you’ll need include the following.
- Identification: A valid driver’s license can serve as identification.
- Proof of employment: In some cases, pay stubs can be enough to prove your employment. However, your lender may want to see a proof of employment letter from your workplace.
- Proof of income: Pay stubs prove your employment. If you’re self-employed, bank statements and tax returns can prove your income.
- Proof of insurance: All cars in the US must be insured. Most insurance companies give you an insurance card with policy information for this.
- Proof of residence: Official correspondence addressed to your home counts as proof of residence. Examples include utility bills and bank statements.
- Trade-in documentation: Trade-ins bring down your new vehicle’s total cost, so bringing them to your lender can streamlines the loan process.
- Vehicle information: Bring in documentation about your prospective vehicle’s price, mileage, VIN, year, make, and model.
Check your credit before getting an loan — you’ll have an idea of what types of rates and loan terms you might receive. You’ll get more and better loan offers with a high credit score.
No need to send your lender your report. They can access it when they are making their lending decision.
Lastly, if your credit is poor, you’ll likely need a cosigner. Cosigners are trusted family members that sign on the loan with you. They agree to pay your monthly amount if you can’t for any reason.
What Are the Benefits of Getting an Auto Loan Through Approved Cash?
Approved Cash makes it easy to find lenders in your area that offer great rates on auto loans. All you have to do is provide us with your name, contact information, and details about your loan (type and loan amount). Our system handles the rest for you.
We only give your auto loan request to 3 lenders, all of which will be in your local area. That way, you won’t be bombarded with phone calls, but the lenders will still be driven to compete with each other for your business.
Auto Loan Calculator
While, you are there you can Use Approved Cash’s Auto Loan Calculator find your dream car at the local dealership. Calculate your monthly car payment and compare auto loan offers and Calculate your payoff car loan.
Submitting a request on our site will not affect your credit score.