How to Get a Car Loan

These days getting to work, meeting social obligations, and just generally getting around wouldn’t be nearly as doable without owning a vehicle. For many people in the Plymouth area, a car, new or used, is often the second or third largest investment they’ll make – so it makes sense, needing a possible leg up on the investment, so to speak. In this quick read we’re going to cover the ins and outs of automotive finance, and hopefully answer your burning question: “how to get a car loan?”

Know Your Credit Score & Health

As it goes with most large purchases funded in part by a bank or other lender, they’re going to want a report of your credit history and score – a number that essentially represents your likelihood of paying back loaned money. Once gathered, this information will be crucial for a lender to determine whether or not they want to offer you a loan, as well as other factors like your interest rate and loan term. Going into the process knowing this information will help you determine where you should shop, as well as what kinds of loans you may qualify for. (A Google search will turn up plenty of sources for obtaining your credit report – but beware of scams and information phishing on less-than-reputable sites. You can reach out to our finance team if you need help with this.)

Choose an Ideal Partner

While applying for loans at multiple banks is a smart way to go, an even smarter move is to let an established dealership with an expert finance department like ours do the legwork of loan applications for you. We work with tons of local and national lenders to help as many people as possible secure funding for their new or used vehicles. You can get the process started today by pre-qualifying online, which saves time that would otherwise be spent in an office. (Not to worry, submitting the form won’t impact your credit score.)

Select a Car in Your Budget

Now that you’ve got some loan offers to work with, it’s time to select a vehicle in your budget to test drive and possibly purchase! At our showroom in Plymouth we’ve got plenty of new Hondas as well as used cars from other manufacturers for you to check out! Make sure to keep an eye on our used vehicle specials for extra savings!

Select Your Preferred Loan

Most of the work is done – you’re nearly there! Now that you’ve put in the effort of applying to loans and selecting a vehicle, it’s time to select the loan you’d like to purchase your vehicle under. Remember these handy tips when picking a loan:

• Loan Term: A loan’s term indicates the length of time you’ll be making payments. A longer loan term (even with a lower rate) can end up being more expensive, so make this decision an informed one.
• Additional Fees: Make sure you’re privy to all of the fees that add up to the final cost. These include taxes, registration fees, and the possibility of an early payoff penalty.

Finance Questions? Go to Victory Honda of Plymouth!

After reading our short guide on how to get a car loan, it’s time to begin the process with a trip to our showroom, just a short trip from Livonia. Our friendly team is ready to help you with everything from test drives to loan questions. Contact us online to begin by scheduling an appointment today!