We can assist you in getting the car or truck of your dreams.
A simple/basic car loan application will include:
- NAME
- SOCIAL SECURITY NUMBER
- DATE OF BIRTH
- CURRENT ADDRESS (AND HOW LONG YOU'VE BEEN LIVING THERE)
- CURRENT EMPLOYER AND PERIOD YOU'VE WORKED THERE
- SOURCES OF INCOME
- OCCUPATION
- GROSS MONTHLY INCOME
Dealerships will be getting a copy of your credit report, which contain most of your financial information, including debt obligations and public data.
The dealership usually submits your credit application to one or more potential lenders, such as a bank, finance company or credit union, to determine if they are willing to buy your contract from that dealer.
The evaluation of your credit application for a car loan, which is when your credit will receive its score, will take into consideration a number of factors: income, expenses, credit history, length of employment, etc. This evaluation will be carried out by your lender.
When you apply for a car loan at a dealership, you will not be in direct contact with the Lender. They will be dealing directly with the dealership, and will take into consideration your credit application, your credit score/report and the terms of sale. The financial institution might even provide the dealership with a lower rate (buy rate), which favors you, the buyer.
Your dealer may offer manufacturer incentives, such as reduced finance rates or cash back on certain models. Look for these incentives online or on the newspaper, magazine, etc. In case you are certain about the make and model that you’re interested in, you should contact your local dealerships to make sure of any special financing/rebates/cashback offer on that specific vehicles.
When a dealer has no special financing offers available, you can try and negotiate the APR and the criterias for payment with the dealership, just like you would negotiate the price of the car. You will notice that the annual percentage rate that you negotiate will be higher of that on a wholesale price. After all, the dealer must make a profit from you financing through “them”. This whole negotiation process can take place at any time AFTER you turn in your credit application.
Dealers who offer rebates, discounts and/or special prices must explain if these offers can be applicable to you. I have mentioned this before: Even being a high school graduate can get you offers/incentives that other target groups cannot get. You might want to try contacting a dealership before you show up, asking them about their rebates and/or special offers. This way you will be saving an extra trip, and you will be better prepared.
Don’t be afraid or embarrassed to ask any questions about the contract you are about to sign. Ask questions such as “Are these terms final?”. Don’t sign a contract if you haven’t been fully approved for your car loan. You might also want to do a little research to see if what they are offering is fair in comparison to other Lenders and/or other dealerships