Posted on: 29 March 2023
There is more to getting an auto loan than simply filling out the paperwork and making a down payment. Most car dealerships require several items before the car loan can be entered and processed. If you are planning on purchasing a car on a loan program, here are some of the key requirements you should know. Keep in mind, there may be more requirements involved depending on the car dealership and the car loan company.
Years on the Job
You may hear popular car loan and dealership ads listing how much you need to make on your job to qualify for a car. What you may not hear is how long you have to be on the job in order to qualify for the loan. Most car loan companies require more than a few months on the job. Some of the larger loan companies require a year or more on the job in order to qualify. They may also ask you to prove this with your prior tax returns rather than just check stubs. The tax returns allow them to see how long you have been on the job as well as the breakdown of your pay.
Many car dealerships are now online. They do not limit themselves to a showroom either. Many of these dealerships have a spot to pre-qualify for an auto loan. This pre-qualification is usually quick and requires you to enter your social security number. You may also have to verify your identity through personal questions or some other identification method. You will receive a pre-qualification amount to use when you visit your car dealership. If you do not complete this step, you may be asked to do so at the dealership.
You may be surprised to find out that car loan companies are starting to request you have direct deposit in order to qualify for the auto loan. This means your employer must already be making direct deposits of your paycheck into your account. In addition, the auto loan company may also require you to have ACH withdrawal capabilities. This means they can auto withdraw your monthly car payment on a specific day of the month every month. This helps ensure they receive the payment and you do not forget the payment.
When you have gathered all your information and feel you are ready to move forward, meet with your car dealership. Once you have chosen the car you want, the dealership representative will walk you through the loan process and take your down payment. If you are not sure what extra requirements may be required, contact your local car dealership before your visit.
To learn more about getting an auto loan, reach out to a lender.Share