How can I purchase a car with a bank loan?

I really need a new car and want to apply for a loan. But a friend recently told me to look out for car loan scams, so now I’m worried. I figure I should go with a familiar lender and just get a loan from my current bank. How can I purchase a car with a bank loan?

Answer
Loan scams do exist, and they can be devastating to those that fall victim to them. Getting a loan from your current bank is a great way to avoid this fate. What’s great is some banks even offer discounts to members that choose to finance their cars through them.
To purchase a car with a bank loan, first call or visit your bank to figure out if you qualify for a loan. Oftentimes, this process is ridiculously quick! Depending on your credit score, you could be preapproved right then and there.
Your bank will then provide you with a quote and a letter of commitment that you can show the dealership from which you’ll be purchasing the car. These two documents can even save you a lot of time in negotiating the car price and loan terms.
From this point, find a car within your budget and inform the dealership of your intent to pay for it with the loan from your current bank.
If your initial loan comes with a less-than-impressive interest rate, consider refinancing after you’ve made several on-time monthly payments. Jerry makes it quick and easy!
Jerry is a single app that does all of the work needed to refinance your loan. Jerry uses your current loan information and credit score to find competitive rates from top lenders. On average, car owners pay $85 less every month by refinancing.
Chloe Jenkins
Answered on Nov 17, 2021
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