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What do lenders look for when giving out car loans?

Nickaroni asked:

I want to buy a car, and am considering applying for a car loan.
What do lenders look for as a bare minimum to get a loan?

I have no possibilities for a co-signer, I have been in the same job for 3 years, so I have steady income, and I live at home so I don’t pay rent/mortgage.

Also, what lenders are usually more willing to give loans? Banks, credit unions, etc..?

Thanks!
Asked on: 2012-11-24 23:01:13

3 Comments

  1. Me myself I says:

    A friend of mine got a car from a car sales showroom. They just need to know that you can pay it back as you have had a regular job for 3 years you have a good chance, it helps if you have credit before like a loan or credit card.

  2. tyler says:

    Credit unions are definitely the best as most of them will take a more personal approach to looking at whether or not you are credit worthy in a given instance. The rest comes down to financing a vehicle that is within your means, financially. Good luck! :)

    -TJT

  3. CarBuyHelp says:

    Here are some factors that lenders consider: credit score, employment and proof of income, residential address, value of car to finance, length of terms, downpayment, current loan standings or recent credit records.

    Since you have a steady job, a stable income and a house you fully owned, you can easily get a car loan. However, the amount they will lend to you and the annual percentage rate of interest they will impose will be affected by the factors i mentioned above.

    Banks offer better interest rates and are more quick in their approval and release of loan amount. So, I would say, you check the banks first.

    Ken
    1-800-951-4714

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