- Posted by Sanderson Lincoln
- On May 31, 2016
At Sanderson Lincoln, we help our customers find an automobile that fits their needs and is affordable. In many cases, a used car is a great option for the first-time car buyer and our used cars are expertly maintained and inspected.
First-time car buyers are often unfamiliar with buying a used vehicle and the steps involved with car loans in Phoenix. The following is a brief overview of the steps involved in getting a used car loan.
Information Needed for a Used Car Loan
- Verification of Identity: first and foremost a buyer needs to verify who they are. In general verification requires a signed photo ID, documents verifying the ID’s listed address (such as utility bills), and bank statements also listing this same address. IDs should be government issued, such as a driver’s license or a passport.
- Verification of Income: a buyer will have to provide proof of their earnings. In most cases, pay stubs or a bank statement that shows direct deposits are all that is needed. Also, proof of other loans that are currently in good standing or current credit accounts can show a customer is a “safe” option.
- Verification of Residency: also needed is proof of current residence for the purposes of communication and loan repayment and collection if needed. Proving residence is relatively easy with a utility bill or a current copy of the lease being acceptable documentation.
- Information about the Car Itself: before a loan will be issued a buyer will have to have to declare what car the loan is needed for. Things to know include the automobile year, make, model, the vehicle identification number (VIN), and mileage.
- Insurance: insurance has to be set up in advance before a loan will be issued. It is possible to set up an insurance plan on relatively short notice after agreeing to purchase a car, however, by reaching out to insurance carriers in advance it’s far easier to compare prices.
Other Things to Keep In Mind
- Credit Rating: a credit rating can give a car buyer an idea of what their interest rate will be and if they will be approved. With a higher credit rating, interest rates will be lower and the loan will likely be approved very easily. For buyers with lower credit ratings, they can still get a car loan at a slightly higher rate and a poor credit rating is not a guarantee that a loan will be denied.
- Have a Down Payment if Possible: finally, when setting up used car loans in Phoenix, have as large of a down payment as possible. The more money upfront a buyer has to put towards the overall price of a car, the less they need for an automobile loan. This results in lower monthly payments, lower interest rates, and a shorter loan agreement.
As the above shows, buying used cars in Phoenix requires a first-time car buyer have their paperwork in order when requesting a loan. At Sanderson Lincoln, we not only help our customers find the car they’re looking for but, with the assistance of our finance department, we can get them a used car loan that is both fair and affordable. Please contact us today for more information.