Car Loan Questions For Your Car Dealer
One of the best advice to have in consideration if you are about to make the decision of purchasing a car is to be absolutely sure that it is actually within your budget. After that, is all a matter of requesting a pre-approved auto loan. At Mercedes-Benz of Beaumont when it comes to car loans, we excel to make the process as easy and transparent as possible; that is why we strive to provide you with the information you need to have a basic understanding of the overall process to get the car you are looking for, reducing any fear or frustration along the way.
Key Things To Know About Auto Loans
Click below to find answers to some of the commonly asked questions regarding auto loans.
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1: Who Has The Best Rates; Car Dealers or The Bank?
In most cases, the car dealership’s interest rates are as good as, and sometimes even better than, the rates you’d get at a bank or credit union. Car dealers use the same banks you have access to, as well as other auto loan lenders. With the lending options, dealerships have available to them, you’ll actually have lenders ‘fighting’ over your loan instead of the other way around.
2: Should I Apply For A Car Loan Before or After Picking Out A Car?
The answer to this question really depends on whether you want to be pre-approved for a specific dollar amount or if you’re looking for financing on your dream car. Whichever you prefer, the dealership financing team is ready to help you throughout the financing process.
3: What Do I Need To Bring With Me To Get Approved For A Car Loan?
It’s always a good idea to come to the dealership prepared for the financing process with the following documents:
- Valid Driver’s License
- Proof of Income:
- If you’re a W2 Employee you’ll need:
- Recent paycheck stubs
- If you’re a new employee, a proof-of-employment letter from your employer is a good idea
- If you’re self-employed you’ll need:
- Bank Statements
- Tax returns
4: Can I Get Approved For A Car Loan If I’m Self-Employed or 1099?
Absolutely! If you are self-employed or an independent contractor (a ‘1099 employee’), all you’ll need to bring as proof of employment is the last three months’ of bank statements, the last two years of income tax returns, and your government issued ID.
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5: Can I Get Approved For A Second Car Loan?
While it is certainly not impossible to get more than one car loan, there are several factors lenders look for when considering financing two or more vehicles at a time:
- Your credit history
- Your debt to income ratio
- Whether you have a cosigner
- How long you have had your current car loan
For more details, we recommend contacting the dealership financing manager to discuss specifics unique to your circumstances.
Conclusion:
By following and learning the answers to these question about auto loans, you’ll be set to make the best financial decision to get the car and loan that cover your expectations. It doesn’t harm to be prepared whenever you’re ready to buy a car.
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