FAQ

Here are 20 frequently asked questions about auto financing
What is an auto lender?

An auto lender is a financial institution that provides loans for the purchase of a vehicle.

What are the requirements to get approved for an auto loan?

The requirements vary by lender, but typically include a good credit score, proof of income, and a down payment.

What is the difference between a secured and unsecured auto loan?

A secured auto loan requires collateral, such as the vehicle you are purchasing, while an unsecured loan does not.

Can I get an auto loan if I have bad credit?

Yes, some lenders offer auto loans to individuals with bad credit, but they may have higher interest rates and stricter requirements.

What is the interest rate on an auto loan?

The interest rate on an auto loan varies by lender and borrower, but typically ranges from 22% to 25%.

How long does it take to get approved for an auto loan?

The approval process varies by lender, but some lenders can provide approval within minutes or hours, while others may take a few days.

What is the maximum amount I can borrow for an auto loan?

The maximum amount you can borrow for an auto loan varies by lender and borrower, but typically ranges from $5,000 to $100,000.

Can I get pre-approved for an auto loan?

Yes, many lenders offer pre-approval for auto loans, which can help you determine your budget and negotiate with dealers.

What documents do I need to apply for an auto loan?

The required documents vary by lender, but typically include proof of income, identification, and vehicle information.

Can I apply for an auto loan online?

Yes, many lenders allow you to apply for an auto loan online, which can be more convenient and faster than applying in person.

How long does it take to get my funds after I'm approved for an auto loan?

The time it takes to receive funds varies by lender, but typically ranges from a few days to a week.

What happens if I miss a payment on my auto loan?

If you miss a payment on your auto loan, you may incur late fees and damage your credit score. Your lender may also repossess your vehicle if you continue to miss payments.

Can I pay off my auto loan early?

Yes, many lenders allow you to pay off your auto loan early without penalty, which can save you money on interest.

Can I refinance my auto loan?

Yes, you can refinance your auto loan with another lender to potentially lower your interest rate or monthly payments.

What is the difference between a fixed and variable interest rate on an auto loan?

A fixed interest rate stays the same for the duration of the loan, while a variable interest rate can fluctuate over time.

What happens if I want to sell my car before I pay off my auto loan?

If you sell your car before you pay off your auto loan, you will need to use the proceeds from the sale to pay off the remaining balance on your loan.

Can I get an auto loan for a used car?

Yes, many lenders offer auto loans for used cars, but the interest rates may be higher than for new cars.

Can I get an auto loan for a private party sale?

Yes, some lenders offer auto loans for private party sales, but the requirements may be stricter than for dealer sales.

How can I improve my chances of getting approved for an auto loan?

You can improve your chances of getting approved for an auto loan by improving your credit score.