Deciding to purchase a car is a major milestone in your life, and when you choose the specific make and model, the next step in the process then turns to funding the vehicle. For most, this will generally involve financing, which brings about an element of complexity and pressure in its own right.
Many new car buyers will be unfamiliar with the time constraints surrounding car loans, so here’s our guide to help you navigate this issue and ensure that you’re not caught out unprepared.
Arranging a car loan
When it comes to the timeline with which you should arrange your car loan, earlier is always considered best practice. In an ideal world, you will have sorted your car loan before you commit to the purchase of the car, however, this isn’t a hard and fast rule.
The reason a car loan should be arranged prior to the purchase – commonly called car-loan pre approval – is to ensure that you not only budget and plan for your financial commitments appropriately, but in order to also guarantee that you receive approval from the financier.
Among the worst outcomes you could expect would be signing the contract for a car that a lender either chooses not to finance, or where the lender offers a car loan on less favourable terms which stretch your budget.
Processing your finance
It is difficult to provide a specific guide with regards to how quickly one can expect their car loan application to be processed by a financier. Not only will this depend on the lender’s processes and protocols, but a large number of variables relate to the applicant. For example, your credit history, and proof of income.
As we’ve touched on previously, if you have bad credit, that’s not the end of the matter. A growing number of financiers are able to work with applicants who have a poor credit history, and as a matter of fact, we’re able to help connect you with such lenders as well.
Fast-tracking your car loan
The best way to make sure that your car loan application is hastily processed is to provide comprehensive documentation. Therefore, make sure you don’t waste any time providing evidence as to your income (i.e. pay slips), identity, citizenship or residency, car insurance policy and more.
Not only is it wise to keep original copies available, but have some spare copies in case something happens to the originals. It also pays to be wary of some of the common mistakes you could encounter, as this will set you back from the get-go. This is something we’re highly experienced in helping customers traverse.
The Fincar team is here to help you with all your financing needs. Contact us today to help arrange your next car or equipment loan.