7 Steps to Financing a Car | Mr. Automotives

7 Steps to Financing a Car

Are you interested in financing a car? Though prices have gone up, you can use the money you have saved for a down payment and get financing to help you pay for the rest of the vehicle’s cost. We have put together seven important steps to follow as you get ready to finance a car.

STEP 1. Check Your Credit

Check Your Credit Report Before Financing a Car Before financing a vehicle, make sure you know your credit score. The higher your credit score is, the lower the interest rates will be on your loan. The interest rate can add hundreds or thousands of dollars, so look for the lowest possible interest rate. And, when you finance a vehicle, prepare yourself to pay back more than the cost of the original loan. 

At Mr. Automotives, we offer $0 down options and financing. We’ll help you figure out which lender will give you the best rate to assist you in saving money on your purchase.

STEP 2. Apply for a Loan With Multiple Lenders 

How can you get a low-interest rate? Apply for a loan with multiple lenders so that you have an opportunity to view their offers. If one lender is offering $15,000 at 10%, another may be cheaper. Keep checking the rates. Doing so will save you more money over the long term and reduce the cost of your loan payments each month.  We offer a budget discovery tool that helps you decide on your budget, how much money you can get from a lender, and the interest rate you should expect.

STEP 3. Get a Preapproval Letter

The next thing to do is to choose the loan you want and get a preapproval letter from that lender. Print it out or keep a copy of it on your phone to show to a dealer. This letter proves that you have the financing to purchase the vehicle you want to look at.  We know that there are dozens of lenders to choose from, which is why we work with you to figure out which lender has the most favorable options for you. We also offer 0% down payment offers on some vehicles, making it possible to buy a vehicle without a large lump sum of cash upfront.

STEP 4. Find a Vehicle You Want to Buy Next

Find a vehicle that you want to buy. Our vehicle selection tool gives us an idea of the vehicles that fit into your price range. We’ll send them to you, so you can schedule a test drive. Choose a vehicle that fits your budget and preferences. We’ll make sure you have an understanding of the price and payments, so you’re ready to drive away with the right vehicle for you.

STEP 5. Review the Dealer’s Loan Offer

The dealer may offer you a loan on the vehicle that is a competing loan to the preapproved loan you already have selected. Sometimes, the dealer will negotiate with you to provide you with a lower rate. They may also reduce the cost of the vehicle with a longer loan to get you to sign with them. Weigh the pros and cons before financing a car this way. If the dealer does offer you a better deal, consider financing through them.  When you work with Mr. Automotives, we start by looking for the best financing options when you make your initial inquiry. We want you to have the best finance terms and loan options so that you can get the vehicle you’re hoping for.

STEP 6. Finalize the Loan

After you select a loan, you need to finalize it. You may need to submit proof of your income, your photo ID, and other information used for verifying who you are and securing the loan. Once you do this, the loan should be issued to you or the dealership so you can finalize the sale. 

STEP 7. Start Making Payments

Finally, get ready to start making payments. Your loan’s terms and conditions will give you details on what you’ll pay and when. Pay on time and continue improving your credit score. We work with people with all ranges of credit, so even if you’ve been turned down in the past, we may be able to help. Thinking of financing a car?

Contact us today at Mr. Automotives and we’ll help you get on your way to a new vehicle. Check Your Credit Report Before Financing a Car Before financing a vehicle, make sure you know your credit score. The higher your credit score is, the lower the interest rates will be on your loan.

The interest rate can add hundreds or thousands of dollars, so look for the lowest possible interest rate. And, when you finance a vehicle, prepare yourself to pay back more than the cost of the original loan.  At Mr. Automotives, we offer $0 down options and financing.

  1. We’ll help you figure out which lender will give you the best rate to assist you in saving money on your purchase.
  2. Apply for a Loan With Multiple Lenders  How can you get a low-interest rate? Apply for a loan with multiple lenders so that you have an opportunity to view their offers. If one lender is offering $15,000 at 10%, another may be cheaper. Keep checking the rates. Doing so will save you more money over the long term and reduce the cost of your loan payments each month.  We offer a budget discovery tool that helps you decide on your budget, how much money you can get from a lender, and the interest rate you should expect.
  3. Get a Preapproval Letter The next thing to do is to choose the loan you want and get a preapproval letter from that lender. Print it out or keep a copy of it on your phone to show to a dealer. This letter proves that you have the financing to purchase the vehicle you want to look at.  We know that there are dozens of lenders to choose from, which is why we work with you to figure out which lender has the most favorable options for you. We also offer 0% down payment offers on some vehicles, making it possible to buy a vehicle without a large lump sum of cash upfront.
  4. Find a Vehicle You Want to Buy Next, find a vehicle that you want to buy. Our vehicle selection tool gives us an idea of the vehicles that fit into your price range. We’ll send them to you, so you can schedule a test drive. Choose a vehicle that fits your budget and preferences. We’ll make sure you have an understanding of the price and payments, so you’re ready to drive away with the right vehicle for you.
  5. Review the Dealer’s Loan Offer The dealer may offer you a loan on the vehicle that is a competing loan to the preapproved loan you already have selected. Sometimes, the dealer will negotiate with you to provide you with a lower rate. They may also reduce the cost of the vehicle with a longer loan to get you to sign with them. Weigh the pros and cons before financing a car this way. If the dealer does offer you a better deal, consider financing through them.  When you work with Mr. Automotives, we start by looking for the best financing options when you make your initial inquiry. We want you to have the best finance terms and loan options so that you can get the vehicle you’re hoping for.
  6. Finalize the Loan After you select a loan, you need to finalize it. You may need to submit proof of your income, your photo ID, and other information used for verifying who you are and securing the loan. Once you do this, the loan should be issued to you or the dealership so you can finalize the sale. 
  7. Start Making Payments Finally, get ready to start making payments. Your loan’s terms and conditions will give you details on what you’ll pay and when. Pay on time and continue improving your credit score. We work with people with all ranges of credit, so even if you’ve been turned down in the past, we may be able to help. Thinking of financing a car? Contact us today at Mr. Automotives and we’ll help you get on your way to a new vehicle. 

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