How to Apply for Vehicle Finance

Many people finance to own a reliable vehicle that they may not be able to afford otherwise. If you're buying from a dealership, they can handle your financing, as most dealers use a variety of banks. Once you choose your car, the process of applying for a loan is rather straightforward. Know which information you should have on hand to apply for a vehicle loan.

Instructions

1

Gather information for the vehicle you want to purchase. If buying from a dealership and applying for a loan elsewhere, ask for a buyer's order, which will list the information needed for an application. Otherwise, have the vehicle identification number (VIN), year, make, model, level, odometer reading and selling price ready to provide to the bank.

2

Check the vehicle over for extra options, as bank values depend not just on the basic vehicle information, but how well it is equipped. Note the following options: alloy wheels (not hubcaps), leather, sunroof, spoiler, DVD player, navigation system, power windows and any additional options you find. If using a dealer and applying elsewhere, ask for vehicle options to be listed on your buyer's order.

3

Get your paperwork ready to provide with your application. Bring your driver's license, proof of income (most recent pay stub or tax forms) and proof of residency (a recent electric, water or cable bill in your name). If planning to purchase from a dealer, you'll also need this information.

4

Go to the bank or dealer you plan to apply to. Speak with a representative, who will take your application. Give the representative all of your vehicle information (not necessary at a dealership) and let her know that you have your proof of income and residency ready.

5

Fill out the credit application, providing your name, address, phone number, date of birth and Social Security number. Provide your address, how long you've lived at it, and your monthly rental or mortgage payment, if any. State your employer, time on the job, business phone number and gross annual income.

6

Sign your credit application. Let the representative know if you plan to put money down toward your loan.

7

Go over your options with your potential lender. Decide on the best term that both fits your budget and your plans to pay off the car. You can take out as little as a 12-month loan or as much as an 84-month loan at some banks -- have the representative run different monthly payments.

8

Wait for your notification of approval. If using a dealership, this process is either instant or can take up to an hour. Under special financing circumstances, such as poor credit issues, the process can take days. If using an outside bank, your approval will either be instant, or can take up to several days for official approval.