We Can Help Starting Your Financing Journey Off On the Right Foot
How Do You Get Approved For Car Financing?
There is a lot to understand when beginning the process of buying a car, truck or SUV. If there is any area that causes people to struggle, it’s when the time for financing arrives. So, how do you get approved for car financing? There are a few fairly standard steps that buyers need to take to get approved for automotive financing. Because the topic of finding an affordable loan can be difficult for people to truly understand, the team at Davey Auto Sales want to help. Let’s take a look at what we found.
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Monitor Your Credit Score/Report
The first thing any lender is going to look at when someone is applying for financing is their credit score and credit report. Simply put, a credit score is a composite of several factors including open lines of credit, payment history and a few other factors. Borrowers with a higher credit score and a clean credit report are more likely to get a better deal on interest rates and other associated costs.
Evaluate Your Monthly Obligations
Most people have other monthly financial commitments than just a car payment. Financial experts strongly suggest collecting all of your bills into one place before shopping for a vehicle. It’s important to leave enough money to have something left over for emergencies, automotive and personal. Some other expenses that should be considered when compiling your new budget obligations include:
- Insurance
- Fuel costs
- Regular maintenance
Where to Apply For Financing
There are several places where buyers can start the process to buy a car, truck or SUV. Each option offers advantages and disadvantages. The point is that there is likely a financing option that can work for just about anyone, almost regardless of their financial circumstances. Places where you could start applying for a loan include:
- Dealer-Arranged Financing – Many dealers (like Davey Auto Sales) work with a large network of lenders that can help people find a loan. This is where people with less-than-perfect credit situations should start.
- Banks/Credit Unions – This is especially helpful if you have been working with them for a while. Credit unions are popular because they can often offer lower interest rates to qualifying borrowers.
- Online Lenders – There are a lot of online lenders that cater specifically to people buying cars and could be a great option for people buying their first vehicle.
If you have any questions about the car-buying process, make an appointment with a Davey Auto Sales product expert today.