What
Do You Need to
Know About Getting A Car Loan?
Before creditors extend you credit, they want to be
confident
that you will be able to repay them the money they lend you.
Here are some of the factors that influence their decision on giving
you a loan.
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Your credit history
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your personal history
- your income
- how long you have lived in the same place
- tenure at current job
- how much ou owe to other creditors
- extent of your delinquent credit
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The car you purchase
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Finding the right car
- The bank considers the value of the vehilce you are
trying to buy as important as your credit and income history.
- Not selecting the right vehicle can hinder your
ability to be approved for a loan.
- If the vehicle is expensive: Do the monthly payments
fit into your income and budget? If not, the lender might be afraid you
can't meet them.
- If the car has a low book value: If you default on
paying your loan, can the loss be covered by selling the car? If not,
the vehicle might not be approved.
- Is a cheaper, older vehicle the answer? Often not—let
our Special Finance Department guide you to the vehicles that banks
consider more favorably.
- You have every right to choose the vehicle you like,
but remember, the lender has the final say. Your approval might vary
with each vehicle you consider.
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Your income
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Your income affects your loan
capacity
- For high-risk loans, you must prove a steady monthly
income.
- It is best to gross at least $1000 per month gross
(before taxes) to secure a loan.
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What you need to get a loan
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To apply for a loan, you must
bring with you:
- If you are an employee: two recent pay stubs.
- If you are self-employed: two consecutive bank
statements showing regular deposits.
- If you are a sub-contractor: either two of your most
recent bank statements of four consecutive cancelled checks from the
contractor issuing them.
- If you are on Social Security, SSI or SSD, or
retirement pension income: you will need to prove this with
documentation from the provider.
- With Guaranteed Credit Approval, there are many ways
to prove your income. Lenders will be very flexible if given proof, but
unless you have it, we cannot process your loan.
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