How to Qualify for a Used Car Loan

If you’re searching for a pre-owned vehicle for sale in North Hollywood, you might be wondering if you can take out a car loan for a pre-owned car. Thankfully, it’s fairly easy to get a used car loan. Of course, your credit score and history play an important role in qualifying for a used car loan. If you’re wondering how to qualify for a used car loan, keep reading for more information on what you need to get approved.

What Do I Need to Qualify for a Used Car Loan?

One of the questions our expert financiers are often asked is, “What do I need to qualify for a used car loan?” If you plan to apply for a pre-owned car loan, you’ll need the following documentation to complete the application:

• Proof of Income: You’ll need to prove that you can afford the car payments every month. Bank statements and pay stubs are usually enough, but a lender may contact your employer for employment verification.
• Proof of Insurance: The law requires that drivers carry a certain amount of insurance. You’ll need to make sure that the car you plan to buy is covered by insurance. You can call your insurance company ahead of time if you know which car you’re purchasing, or you can do it at the dealership.
• Identification: Photo identification usually isn’t enough to prove your identity. You may also need to show a current bill in your name or a bank statement with a name and address that match the info on your ID.
• Proof of Residence: Lenders want to know where they can find you if needed. Usually, a current utility bill is sufficient for proof of address.
• Proof of Ownership of Your Current Vehicle: If you plan to trade in your current vehicle, bring the title and registration to show ownership of the car.

Do You Need a Good Credit Score to Get a Car Loan?

You don’t need a good credit score to get a car loan. But, having a good credit score can streamline the application process. Plus, a borrower with a good credit score is more likely to get lower interest rates than someone with a bad credit score. What constitutes a “good” credit score varies from lender to lender, but in general, having a credit score of 680 or higher can help you secure a lower annual percentage rate (APR) on your car loan. If your credit needs work, you may need a cosigner to improve your approval chances and to get a lower interest rate.

Apply for a Used Car Loan at Sunrise Ford - North Hollywood

Now that you know more about how to get a used car loan, take the next step with the finance team at Sunrise Ford - North Hollywood. We’ll help you secure a used car loan with terms and rates that work for your budget and lifestyle. To start the process, apply for financing by completing our online application. And, for more opportunities to save on your used car purchase, take advantage of our pre-owned vehicle specials.