Securing a bank loan to finance a car is one of the best options in auto financing. Bank loans don’t just give you loans but also offer better rates. In addition to this, car financing from these sources are easier to find since banks are established almost everywhere. In order to secure bank loans you need to do the following.
1. Try to determine your credit score from one of the three credit reporting institutions. Knowing your credit score helps you understand the available options that can be used to secure loans to finance a car. If your credit score is high, this could mean that there are many loan options that is suitable for you. In case your credit score is low, this could mean that there are only limited loan options that might be available for you.
2. After knowing your credit score you can either visit the nearest bank or call them to search for information about the present car loan deals that they offer. Tell them that you want to apply for a car loan and request for their available loan rates that are applicable with your present financial condition.
Usually, the bank’s auto loan department would ask you to supply them with the basic information such as the information about your employment, annual gross income, and the mortgage or rental payments you pay. There are other banks that would for additional personal information such as your social security number, birth date, and proof of residence.
3. Find out if your bank loan application is approved or not. In case your application was not approved, you need to search for loans elsewhere. When the application is approved, you can inquire about the rates involved and the limitation included such as the type of car that can be purchased.
4. You can directly proceed to car dealerships as soon as the loan is approved. Inform the dealers about your loan approval and search for your car. Try to negotiate with dealers regarding the car’s price and request for possible discounts.
5. After choosing your car and negotiating with the dealer, you can go ahead and purchase the car. Sign all of the documents needed for the purchase and the loan. After this, you might be able to drive the car off the dealer’s lot. The bank would pay for the car either by sending the dealership with check through the mail or via electronic fund transfers.