auto loan pre approval
How does auto financing work through a credit union?
I can’t get a loan through a car dealership cause I have no credit history and their rates were ridiculous. How would financing for a car work through a credit union if I got approved? After approval, do you just walk down and pick up a check from the credit union and go to the dealer? Or do you go to the dealer first and then after you have everything squared as far as price, contact the credit union (assuming you’ve been pre-approved for a loan through them)?
I’ve never taken out any kind of loan before some I’m unsure how to go about doing this.
Auto finance is what I do for a living and this should shed some light on your question.
Below is a list of factors that auto lenders look for.
Factors.
1. Loan to value (LTV).
2. Age of vehicle.
3. Term of loan.
4. Miles on vehicle.
5. Down payment.
6. Time on job.
7. Time at residence.
8. Monthly income before taxes.
9. Credit score/profile.
10. Total debt to income including new payment.
What they look for;
1. Between 85% and 115%.
2. No older then 8-years.
3. 36-72 months.
4. No more then 60,000.
5. 10% of the sales price or $1,000.00.
6. 2-years.
7. 2-years.
8. $1,500.00 to $2,000.00 depending on lender.
9. 540 or above with 4 paid as agreed lines of credit with 1 being a installment loan paid at least 12 times for at least $150.00 a month and in the credit bureaus for at least 3 years.
10. Not to exceed 45%.
Another thing that comes into play is called payment to income ratio so depending on the term of the loan and the interest rate you would have to budget for the payment. Most lenders do not exceed 16%.
It will work the same way through a credit union.
Chattanooga Car Loans and Chattanooga Auto Finance at Chattanooga Ford Dealer Mtn View Ford
