The first thing you need to do is determine what type of financing option you're looking for. do you want a bank loan, a lease, or financing through one of the many other finance options at financial institutions?
people who are curious about how their credit score will be affected by applying for an auto loan should keep in mind that while loans and leases affect your credit score, they don't have the long-lasting effect on your credit history that car repossession has. if you qualify for a car payment according to income and total debt load, then it's worth getting an auto loan if your goal is obtaining less expensive monthly payments.
how does financing a car through a bank work?
you would get pre-approved for a loan before shopping for cars. many people get the money to buy the car, and then finance it through their bank so they can get their dream car without making large monthly payments. you also have an option to “lease” your car which means that you're charged on your income after you use up more than 80% of the value of the vehicle (after 36 months or 60,000 miles). leasing is often more affordable right away but has higher fees over time if you choose not to turn in the leased vehicle at lease end. a used car dealer might charge less interest, but will always expect you to make more immediate payments. if your credit score is lower than 650, i
what do you need to get a car loan from a bank?
you need bank statements, pay stubs, job verification, an up-to-date credit report with no late payments within the last six months.
you can't just go to a bank and request access to their auto loan program without being screened first. they rely on your documents for proof of income and stability before they'll authorize any money to release to you. secondly they want verification of your employment so they know you have transportation to work on a daily basis. all loans are secured against the collateral being the vehicle so it's important that banks have some way of trying to recoup any losses if for some reason you default on the loan by jeopardizing its value (i.e., wrecking it). if that happens
what is the minimum a bank will finance a car?
unfortunately, we can't say much about financing because our information is limited. but know that different banks offer different rates and terms.
