How to Get a Car Loan

September 30th, 2021 by
Car Loan

 

With all the exciting new models from Honda out now, there’s no wonder you’re questioning, “How do I get a car loan in Toledo?” Getting a loan is an essential step in the car buying process, but it doesn’t have to cause you stress. Follow along with Victory Honda Monroe finance center as we take a look at how to get a car loan, and you can get back on Monroe streets in a model you love. 

Steps for How to Get a Car Loan

While finding the right loan may take time, we think you’ll find overall it’s a straightforward process. Let’s take a look at how you can find the right loan with a good interest rate around Detroit:

  • Check Your Credit Report: Starting by knowing your standing. Your credit report and income help determine how much you can borrow at what interest rate, so it’s a good idea to check for and address any errors before applying. Keep in mind fixing errors and raising your credit score can take time, but errors can lead to you being turned down for loans, or receiving a higher interest rate. 
  • Shop for Loans: It’s a good idea to shop for loans from banks, credit unions, and dealerships to compare their rates and incentives. Take care to notice if there are any restrictions placed on where you can buy the car. 
  • Get Pre-Approved: After searching for loans from various lenders, it’s time to start requesting rate quotes. Since each lender weighs factors on your credit report differently, the interest rates can vary, but multiple quotes gives you negotiating power when going to the dealership. Note: Be sure to apply for all pre-approvals within a two-week period to avoid marks to your credit report.
  • Determine Your Budget: While you’ll be approved for a certain amount, you should keep in mind that 10% of the loan amount should be set aside for taxes and other fees. To help determine your budget, use tools like our payment calculator to establish your down payment, trade-in value, and lending terms to determine what your monthly payments would be. 
  • Search for a New Car: Then comes the fun part. Be sure to browse our inventory of new and used models for the right performance and features you need on Taylor roads. 
  • Review Your Loan Offer: Take the time to review your loan offer at the dealership. Dealers often have their own auto loans with better interest rates since carmakers establish their own banks exclusively for auto loans. If you find their offer more agreeable, you still have the ability to negotiate the price of car, instead of the monthly payments.
  • Finalize the Terms: You’re ready to finalize the deal once you’ve found a vehicle and loan offer that works for you. Look over the contract carefully to verify the discussed conditions like term length, additional add-ons, and any other penalties you should be aware of. 
  • Make Timely Payments: You’re ready to hit the streets of Monroe in your new model! To round off the process, make sure you’re making timely payments so there are no surprises on your credit score in the future. 

Explore Your Financing Options with Victory Honda Monroe! 

Now that you have an idea of how to get a loan around Monroe, reach out to the team at Victory Honda Monroe if you have any more questions. Another guide that may be used in your new car search is weighing buying vs leasing.

 

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