How do you take out a car loan?
I’m in the process of buying a new Acura and I’m stuck between two choices: one is easily affordable but not my favorite and the other is more expensive but has everything I want. I’m considering getting a car loan, but I’m not sure how to do it. How do you take out a car loan?
- Check your credit, which will help you determine how much you can afford to borrow and approximately what your interest rate will be.
- Get pre-approved by allowing your top choice lenders to do a more thorough credit analysis.
- Find and apply to different lenders. Look to banks, independent online lenders, or dealerships and apply. Compare quotes from each of them to determine your best options.
- Know your budget and stick to it. Lenders will always show you the maximum amount you can borrow based on your credit. Set your budget based on their quotes and your comfort.
- Pick your car based on your budget.
- Pick and finalize your loan by going through all of the terms and conditions. Understand your fees, interest rates, and terms.
- Proof of identity
- Proof of income
- Proof of address
- Car information (such as the VIN)
- Proof of insurance