How to Get Financing From a Bank for an Auto Loan

Car financing is commonly offered straight through the dealership, but you can also choose to get financing at a bank to get greater control over the financing terms. Showing up at a dealership with bank financing also gives you negotiation power, as you have a guaranteed loan and don't have to rely on any special deals or offers that the dealership may try to offer you.

Instructions

1

Check banks for car loan rates. Banks usually disclose the lowest car rates on their website, although that might not be the rate you actually get since it can vary due to your credit status. If this information is not published on the bank's website, call its loan department.

2

Fill out a car loan application online, in person or by mail, depending on the bank's requirements. Car loan applications request personal and financial information. Copy your pay stub if you are a W2-receiving employee, or your tax returns if you are self-employed. Include this copy in your application as proof of income. The bank may also request a few months' worth of bank statements. Another area you need to fill out on the loan application concerns your current debt load. You'll need to provide your bills so the bank can determine how much of a car loan you are eligible for.

3

Go to the auto dealership once the bank has approved your car financing. The bank will provide you with the maximum loan amount that it believes you can finance. You'll receive the loan approval through the mail after applying, so you won't have to wait long to go car shopping. Once you have selected a car, the dealership contacts the bank to confirm and use the financing offer. Some banks may give you a blank certified check that the car dealership fills out with the total amount of the car loan.