What Things Do You Need to Get a Car Loan?

Last Revised on November 15, 2010

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As much as it is so easy to buy car these days, it could be much harder to get a loan to buy a car. There are so many things that you need to gather to get car loans, but some of them are so critical that in their absence you could be easily disqualified as a borrower. Right now the money is tight, and many banks and companies are little bit stricter than ever to determine the eligibility for car loan applications. So what should I do to prepare myself before applying for a loan to finance a car?

Here are the list of things that you will need to get a car loan fast with no hassle at all:

1. ID card – even though this might sound like a ridiculous requirement, but there are people who sometimes try to open up a bank account to get a loan in someone else’s name. For that reason lenders like to verify the identity of the buyer as a the first step of this long process. This step protects both you the borrower and them the lenders.

2. Got work – being employed and working at least part time is often times what car loan companies look at so that they know for sure you will be able to pay back the full amount with interest added. So it good idea to save your check stubs if you plan to apply for one soon.

3. Good credit – this is probably the most important and most talked about thing when applying for a loan, especially a big purchase such as a new car. Your credit is built in many ways; but most often when you used a credit card or other large finances. If you pay on time, your credit history gets better and vice versa.

4. References – these people who know you such as your friends and co workers. The car loan lenders just want to make sure you are who you say you are. Often times they don’t contact your references at all.

5. Cash – even though the reason you are getting the loan for your car is that you don’t have enough cash, it is good idea to put down a good amount of cash as much as you can. Often lenders are looking for a minimum down payment that you should make right before you sign the contract. That way you won’t need to borrow a huge amount of money.

6. Assets – any real estate property or other big money items such as cars could help you get loans easier. Because it proves you got things and in case you don’t pay back the car loan they can expect to get repaid via your assets.

In conclusion, getting a car loan financing is very easy if you carry the proper information and document with you.  Lenders are often looking for good qualified borrowers; remember it is not that they don’t want to give you loans to buy a new car, but it is just that they want somebody who is responsible enough to make payments in a timely fashion manner.

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2 Responses to “What Things Do You Need to Get a Car Loan?”

  1. frank the Auto Dealer Says:
    November 15th, 2010 at 9:38 am

    I have seen many people come to buy a car with zero cash down. Even though we are happy to offer them financing and thankful for their businesses, it is better for them if they can put some money down at the beginning. It doesn’t matter how good of a credit a buyer has, if he or she isn’t able to make payments on time their credit score will run down like a water. My best advice for anybody who is reading this piece is to know and decide on how much you can afford before going to purchase a car. It could be tempting, especially when the salesmen makes so many impressive pitch to sell you a car right away at “good price” with full financing option. I would always tell my family to not buy on the first day, instead shop around and decide which one offers the best deal. I hope this helps people.

  2. rw Says:
    July 21st, 2011 at 7:48 am

    if i have excellcent credit, no pay stubs but bank statements…which financing is best? Do i go to my current auto loan ? creditcard co? or mortgage company or personal bank – which would be the best to get a good auto that won’t need pay stubs and will give me the best rate

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