A: Many people get a car loan from a financial institution such as their bank or credit union. However, some dealerships have financial departments that allow car buyers to apply for financing right through the dealership. Some customers prefer this as it keeps their loan and the actual cost of the vehicle all in the same place, plus sometimes dealers can offer special incentives or interest rates.
A: If you’re applying for a loan somewhere else besides a dealership, you need to go get pre-approved at your chosen financial institution first. In order to do this, you should have an awareness of your credit score and history, as well as documents that show lenders your:
A: Being “pre-approved” means getting approval for an auto loan before you go to the dealership and select a vehicle. Getting pre-approved is helpful because it gives you a set budget with some wiggle room to find a car you like and negotiate the cost. When you’re pre-approved, your bank or credit union will give you a blank check in which you are free to write the amount of the loan.
A: If you’re ready to go through the process of purchasing a vehicle, you should bring a few things with you to the dealership, including your driver’s license and proof of insurance. If you’re trading in an older vehicle to put the value towards the new car, bring the Certificate of Title. Last of all, don’t forget to bring your method of payment and a checkbook - you’d be surprised how many people leave it at home!