How to Finance Buying a Car With Banks

Several different financing options may be available to you depending on your credit standing and income. Manufacturers often offer incentives to buy, such as low-rate financing or lease options. You may also finance your car at a credit union, which may offer lower interest rates than a bank. Once you decide where to apply for your loan, you must fill out a credit application and submit your vehicle information for an approval. Based on the information you submit, your lender will approve or decline your loan.

Instructions

1

Check auto loan interest rates. Go to bank and credit union websites to view the rate and lending terms, which may differ by new or used car purchases. If purchasing a new car, visit the manufacturer's website or ask your dealership for its new car interest rates, which are often lower than traditional lenders offer.

2

Call any potential lenders to discuss your loan options, or discuss options with a salesperson if using a dealership. Be sure to discuss your target monthly payment and how you plan to handle tax and fees, which you may roll into your loan or offer as a down payment.

3

Complete your loan application, whether online, on the phone or in person. Have your information ready, including your date of birth, Social Security number, employer address and phone number, an accurate estimate of your time at your job and at your address, and your gross annual income.

4

Submit your vehicle information. Have the following information ready: vehicle identification number (VIN), year, make, model and car features. Features include vehicle options such as a sunroof, DVD system, alloy wheels or a sunroof, which increase vehicle lending value. Also include the amount of the loan you want.

5

Wait for your approval. You may receive it instantly or it may take up to one week depending on where you apply. Once approved, confirm the terms of your loan with your lender.

6

Add the vehicle to your insurance policy, insuring the car with a full-coverage policy. Ask your lender for its requirements and add any limits it requires. Obtain proof of insurance coverage with your lender listed as the policy's loss-payee and submit it to your lender.

7

Sign your loan contracts. Go over the contract to ensure the terms are as you previously discussed. Obtain your loan check to provide to the vehicle's seller. Keep copies of all of you loan paperwork in a safe place for future reference.