What to Know When Applying for Auto Financing

A key component of the car buying process is finding auto financing that fits your budget and credit history.

Focusing on the overall cost over the full term of the financing (number of payments and interest) as well as your other bills and expenses will help determine your budget to purchase a vehicle. Additionally, checking your credit report and having a good understanding of your credit history will help you determine the right financing option for you.

What are my auto financing options?

This generally depends on your credit history and employment status. Since most traditional auto lenders and finance companies want to ensure you have the financial means and discipline to make on-time car payments, they are more likely to approve car buyers who have good credit and a steady income.

Because life happens to the best of us, we know that not everyone has a good credit history and/or consistent employment on their side. The Credit Acceptance program was designed so dealers enrolled in the program could provide credit approval to everyone, regardless of their credit history, to purchase a reliable vehicle. Our nationwide network of more than 12,000 dealerships enables car buyers with bad credit or no credit to get approved for auto financing. So, even if you are struggling with credit, there are opportunities for you to get vehicle financing.

What paperwork is required when I’m applying for auto financing?

While the required documents vary by the lender or finance company, typical documentation required when applying for financing includes proof of income (which can vary based on employment status), proof of residence and a valid driver’s license.

Moral of the story

Taking time to research your auto financing options and prepare the paperwork required for your application can make all the difference in your car buying journey. If you’ve already done your research and need help getting approved for auto financing, a car dealer enrolled in the Credit Acceptance program can help you get started.

Click here to begin your online pre-qualification process!