Question 1: How does applying for an auto loan online provide any benefits?
Answer: The biggest plus of applying for an auto loan over the Internet is that application process and decision making is simpler and usually offers the chance to receive the best annual percentage rates. Also, you will be applying from the comfort of your own home. After submitting your online auto loan application, the auto lender will tell you within a few minutes if you have been approved or not for your auto loan.
Question 2: What are the basic requirements for applying for car financing?
Question 3: What is the difference between direct and indirect car financing?
Answer: Direct car financing is a cash voucher or draft approval from a financial lender for buying at a dealer of your choice. An Indirect car financing means you get financing from the car dealer.
Question 4: What is the difference between prime car loans and subprime car loans?
Answer: Prime car loans are for car loan applicants that have an excellent credit profile. Lenders offer interesting rates for prime applicants because they have proven that they can manage their credit. Subprime auto loans, is for people who do not have excellent credit and usually the terms and rates are not as attractive prime car financing.
Related Article: How To Sell Your Used Car for Cash
Question 5: Is it needed to choose my car before I apply for an auto loan?
Answer: It will be better not to select the car first since you should know the amount and price range that you can comfortably afford. Your first task is to apply for direct auto loan financing. Once you are approved, you will receive an electronic check for a maximum amount of money to spend, based on your current credit standing and your current debt-to-income ratio. You will simply complete the electronic check by filling in the amount for the cost of the vehicle.
Question 6: What are the factors that determine the annual percentage rate?
Answer: The annual percentage rate APR that you will pay for on your auto loan depends on several aspects. First, auto loans depend on an applicant's credit history - the better your credit score, the lower your interest rate. Furthermore, your interest rate also depends on loan term and on whether you are buying a new car or a used car the year of the vehicle.
Question 7: Typically, how much will I have to pay for the down payment?
Answer: If a down payment is required to purchase the car, they are usually 5-10%. The amount of the down payment is determined by your credit history also..The better your credit history, the less you will have to pay for the down payment and in addition you will obtain an attractive APR.