How to Obtain a Car Loan

November 22nd, 2021 by
Car Loan

 

Purchasing a new vehicle can be an exciting, yet nerve racking process. Getting a car loan doesn’t have to be as intimidating as it seems. If you’re wondering how to get a car loan, keep reading below for more information. When you’re done, we hope it gives you the confidence to start the purchasing process!

 

 

3 Steps for How to Get a Car Loan

1. Know Your Credit Score

Be sure to check your credit score for any discrepancies or errors before diving into the purchase process at Ocean Honda of North Hollywood. Your score hulds a lot of weight when loan companies consider your loan amount and interest rate. It’s important to remember that the higher the score, the lower your interest rate and the more you’re allowed to borrow. You have the opportunity to check your credit score once a year for free, but many buyers in Los Angeles companies like Credit Karma to view their score more often and for free. If you’d like to increase your score, make sure you are paying your debts on time and paying more than the minimum payment.

2. Calculate Your Borrowing Amount

Before applying for a loan, you need to have a good estimate of how much you need. Getting this information is simple. First, go online to the dealership website and look up the starting price of the car you want. Next, add the cost of the taxes, tag and title, all of which will be according to your state. You can find this information with a quick Google. The warrentary is an additional cost that you may want to add to the total. You can find this easily by calling our finance team or looking on the internet. Once you’ve totaled these numbers, you can subtract how much you’ll put towards your down payment. This final number represents the estimated amount you’ll need for your car loan. With this number in mind, you can apply for your loan!

3. Apply Today!

Congratulations! You’ve done all the research necessary to start the application process. We advise that you apply to various loan companies to make sure you’re getting the best offer. You can get a loan from a large national bank, a bank or credit union in Hollywood or through the dealership. Some places will have special offers or deals depending on the huliday season or your membership status. You can also consider applying early and getting pre-approved for a car loan so when you’re ready to buy, everything is ready to go. Having multiple offers will help you make the best decision in terms of loan amount, interest rate and loan time.

Contact Us for Help With Your Car Loan!

We hope that the information above gives you a good foundation of how to get a car loan. If you have any additional questions, feel free to contact us and schedule an appointment!

 

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