What Requirements Are There to Get an Auto Loan?

Looking to buy a new car in Lorena, but unsure how to qualify for a car loan? The process may be simpler than you think! Qualifying for a car loan generally involves gathering info like proof of income, your credit history, and other identifying documents. Then, you’ll work with your local Honda dealership to submit your financing application to multiple lenders. Below, we’ll look at everything involved in qualifying for a car loan so you can find the new Honda you need in McGregor.

car paperwork

What Do I Need to Qualify for a Car Loan?

For any financial institutions you apply at, qualifying for a car loan will require that you provide the following info:

  • Proof of Income — Pay stubs from your employer or bank statements serve as proof to the lender that you have the ability to meet your monthly car payments.
  • Proof of Insurance — The law requires that you purchase auto insurance. You can do so at the dealership at the time you purchase your car, but it’s also something you can take care of ahead of time.
  • Identification — Bring two forms of identification: a photo ID, and corroborating documents such as a current utility bill or bank statement that match the name and address on your ID.
  • Proof of Residence — Lenders need to know they can get in touch with you. A current utility bill is generally adequate proof of residence.

What do you need to qualify for a car loan if you’re trading in an old car to help finance a new one? Just be sure to bring your current car’s title and registration.

Do I Need a Good Credit Score to Get a Car Loan?

When it comes to your credit score, what do you need to qualify for a car loan? A good credit score can help you obtain better interest rates on your loan, but auto financing is absolutely possible with bad or even no established credit. Apply to multiple lenders, as some lenders will be more flexible about your credit score than others.

Qualifying for a car loan with bad credit also means you should expect the lender to require a larger down payment and higher APR. Or, you can look into the benefits of a loan co-signer or in-hour financing with your dealership.

Learn How to Get a Car Loan Today at Greg May Honda

Questions about qualifying for a car loan? The friendly finance team at Greg May Honda can provide the car-buying tips you need to drive home to China Spring in a new Honda SUV you love. Contact us today to get started!