How to get a car loan is much simpler than it sounds. Many Wilmington drivers already have a car loan and they are thriving. You, too, can get a car loan by following some of our tips on getting a car loan. Contact us today! At Victory Chrysler Dodge Jeep Ram, we are here to answer any questions you may have.
How to Get a Car Loan
Get a car loan faster by following these easy steps:
Check Your Credit Report First
Do not apply for a car loan without checking your credit report first, Conway, SC drivers! You need to know your score, as it plays a vital role in whether you will be approved for a car loan and the percentage for your interest rate.
You can check your credit score yearly for FREE at any of these trusted sites; Equifax, Experian, and TransUnion. Keep in mind that a sub-prime or poor credit score is typically 600 or less. But do not worry, you can always increase your score.
Increase Your Credit Score
If your credit score is less than ideal, you want to make strides to increase your score before applying for a car loan. Look at your report and prioritize which creditor you can pay off or make payments on.
Research Lenders
There are various car loan lenders in the Myrtle Beach, SC area. However, you should not stop at the first auto loan lender you see. Shop for multiple lenders and see what they quote you.
Remember that some lenders will do a “hard” pull on your credit report, which consists of looking over your entire credit report. Other car loan lenders will do a “soft” pull on your credit report. Which means they are likely only to review your credit score. Both types of credit checks have to do with whether you pre-qualify or get a pre-approval.
Which is Better? Pre-approval or Pre-Qualification
There is a difference between being pre-approved or pre-qualified. Here is what you need to know:
Pre-Qualification
When you are pre-qualified, you will get a car loan within a given rate or range. Lenders will only do a “soft” pull and check your credit score.
Pre-Approval
When you receive a pre-approval, lenders tend to take you more seriously. They will do a “hard” pull on your credit to review your credit report and not just your score.
Regardless, you are not guaranteed a car loan for either a pre-approval or pre-qualification. You need to work on your credit score, if necessary, to improve your interest rate.
Car Loan Pre-Approval
You can disregard other lender auto loan offers and do the following once you find a pre-approval that works with your budget:
Negotiate or Accept Car Loan Offer
You do not have to accept a car loan offer off the bat. Instead, you can try and negotiate to see if there is some wiggle room for you to save money.
Finalize your Car Loan
Once you accept your car loan offer, it is time to finalize your car loan. You need to review your contract to ensure there are no hidden costs or fees. On the contract, you should only see the price of the car, sales tax, documentation fee, and registration costs. If there are other fees on your agreement that you did not already agree to, question them. Here are some hidden costs to look out for on your car loan contract:
- Length of Term
- Additional Add-Ons
- GAP Insurance
- Early Payoff Penalty
Get Your Car Loan at Victory Chrysler Dodge Jeep Ram in Shallotte!
You can trust our finance team in Shallotte to help you get the best car loan that fits your budget. You can apply for financing online to see if you get pre-approved with us! Keep in mind that you will receive an estimate, and it could change upon vehicle inspection. Please take a look at our new vehicle inventory to pick the car, truck, or SUV that suits you best.
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