Car Loan Questions For Your Car Dealer

Key Things To Know About Auto Loans

Click below to find answers to some of the commonly asked questions regarding auto loans.

• I’m A First Time Car Buyer, Do I Need A Co-Signer?
• Should I Apply For A Car Loan Before or After Picking Out A Car?
• Can I Get Approved For A Car Loan If I’m Self-Employed or 1099?
• Can I Get A Car Loan After A Repo?
• Can I Get Approved For A Second Car Loan?

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.