Users' questions

Can I finance a car if I just started a job?

Can I finance a car if I just started a job?

Even though many lenders have a length of employment criteria, you can readily get a car loan if you just started a new job. Your length of employment is just one of four factors that banks consider when underwriting. The others are your credit score, DTI ratio, and the size of your down payment.

What happens when you sell a car you’re financing?

When you owe more than your car is worth, you have to give the lender the difference between the sale price and what you owe. The buyer will pay the sale amount to the lender. Then you and a representative of the lender sign the title and give it to the buyer so they can get a new title and registration.

What credit score do car lots use?

FICO Score 8
Auto lenders most commonly use the FICO Score 8 system When you submit your credit information to a dealership or directly to a lender to apply for an auto loan, the information they pull from the credit bureaus is typically under the FICO Score 8 scoring model.

What happens if you are approved for financing at the dealer?

If they approved your financing and you signed an agreement with them and they suddenly discovered their mistake and attempt to strong-arm you into backing out of the deal, you may be able to enforce the contract.

How can I get financing for my car?

Another option is to attempt to obtain financing on your own. Obviously you will need to do this very quickly as the dealership will likely be hounding you to return the vehicle. Private lenders are an option as well as institutional lenders.

Why did I get denied financing for my car?

Unfortunately, this situation could be caused by several factors. For example, you may have been simply pre-approved at the dealership and subsequently denied actual financing once the banks got a closer look at your financial situation.

Why do car dealers want you to finance through them?

in-house financing. In-house financing at a dealership is when the dealer is also the lender. Financing a car this way is usually only offered to customers who cannot get a loan from other lenders due to bad credit or no credit and the APRs offered are often at the maximum allowed by state law.

Why is it important to get car financing in advance?

Having financing arranged in advance also encourages the dealer to come to the bargaining table with their best financing offer, saving both parties time and possible frustration. Nevertheless, prepared consumers should always investigate alternative financing through the dealership.

Can a car dealer make money with a preapproved loan?

Dealerships won’t make any money off your preapproved auto loan and while it may feel nice to “stick it to the man” and not allow the dealership to run your credit, you could use the dealer’s desire to make money to your advantage. Allow the dealer to send your auto loan application to its lender network and see what offers you get.

How to get a loan for a new car?

Shop around for a loan from an independent source such as a bank, credit union or online lender before going to the dealership. Only give the car salesperson permission to run your credit if you decide to finance at that dealership. At the car dealership, tell the salesperson you are a “cash buyer” (because you have preapproved financing).