There are not too many people that have disposable money to simply pay off the amount of a vehicle. Hence, this is why many people apply for a car loan. They can (in most cases) easily apply for a vehicle loan to help get them in the vehicle that they want to purchase. Here are some basic car loan facts that can help you get a car you want!
What is a Car Loan? Many people mistake a car loan for a vehicle lease. It is not the same.
- A car loan from your local dealer is to finance your vehicle payments to purchase a vehicle without paying upfront for the full payment of the vehicle.
- The customer will be paying a lender, a lender will happen through the dealership or with a bank. The type of lender will calculate the financing that will determine your bi-weekly or monthly payments towards your vehicle.
- The interest of the finance will be calculated within your vehicle payments.
The 4 Easy Steps for Getting a Car Loan
There are 4 steps that are needed to help you get a car loan from the lender within the financing department. The following 4 steps may differ, the steps could increase or decrease in the process depending on the lender or dealership, however, these are most likely going to be included within the financing method.
- Choose Your Vehicle – The salesperson will be able to help you find a vehicle that is either the one you researched and want or the one equivalent to what you can afford based on your income. Use your salesperson’s knowledge of vehicles to help you get the desired vehicle.
- Credit Check - Your Credit Score will reflect the rate that you will pay for your car loan.
- Car Term Agreement - This is where you will determine the length of the term you will make payments on the car loan. This is how long your payment process will be.
- Finalizing the Paperwork – After you choose your vehicle and have agreed on a price, it is now time for the Financing Department to work with the internal or external lender to obtain your car loan.
Now that you have some more knowledge about the car loan process, you can make an appointment or go ahead and drive to the dealership. Let’s get you in a new car!