While paying cash might be the cheapest way to buy a car, it isn’t an option for everyone. Before going to your local car dealer, you should research the best payment method for you. It can be quite confusing and overwhelming to apply for financing; fortunately, GT Auto Sales in Tacoma, WA, is here to answer some of the most frequently asked questions about the process.
Car Dealer Answers 4 FAQs About Financing
1. How Do You Apply?
Once you’ve chosen a lending company, prepare the following documents: proof of income, credit and banking history, and proof of residence and insurance. You’ll then need to fill out the loan forms and submit the required documents. Once you receive a loan proposal, check the numbers and read all binding agreements carefully before finalizing the paperwork.
2. What Credit Score Do You Need to Buy a Car?
Credit scores that are 700 or above are considered “good.” Scores that fall in this range give you a more favorable loan rate and a wider selection of vehicles to choose from. Don’t feel disheartened if you have a less than stellar credit score; you’ll still be able to buy from a car dealer. However, your options will be more limited.
3. Can I Get a Loan to Purchase a Used Car?
You can choose between a personal loan and loan purchase. Personal loans offer reasonable fixed interest rates, especially if you have a good credit rating. If your credit score falls below 700, you can opt for a loan purchase where you borrow directly from the dealership.
4. How Much Will I Be Eligible For?
For some vehicles, financial institutions can offer up to 90% of the car’s value as auto loan. However, the amount may vary based on vehicle cost, type, and value in the second-hand market. For instance, most lenders will not approve a loan for used cars that are more than four or five years old.
Are you ready to buy your first vehicle? GT Auto Sales can help you find your dream car with a payment option that will work for you. This car dealer has an extensive selection of brand new and used cars, as well as certified pre-owned cars. Call (253) 507-8027 or visit their website to browse their inventory.