1. Open Bank Account
First step you need to take towards getting a car loan is to open bank account saving account is recommendable though, as it will be base before entering into the credit world.
2. Budget Calculation and Saving up for down payment.
Before buying a car or applying for auto loan you must analyse how much amount of money you can spend and arrange as down payment.
A large amount of down payment on car will help to get car loan easily and ultimately you need to pay less for the car later on.If you try to save upto 10-20% of the total cost of a car as down payment, less your monthly installment would be.
3. Gathering Documents
Gather the following documents which is going to ask by lender while applying for a car loan.
- Bank Account Statement
- Any paid bill or phone bill or utility bill
- Proof of Employment History
It is important to have all documentation ready before getting a car loan listed above. These documents will show lender that you are able to make payments on a loan on time.
4. Shop Around for loan
Finding a car loan with no credit is usually not a typical task and it does not means you will not get best deal on car loans.
For best auto loan rates you first need to search market by visiting all lenders beginning with your bank first because they are more likely to give you loan as compare to other and then check with other reputable banks and lending institutions.
Compare all multiple lender, paying attention to the factors like auto loan rates, Monthly installment in order to get best rate.
Ask Car Dealership to get loan
If you are unable to find loan from bank or any satisfactory deal, you may ask to dealership to whom you are planning to purchase a car. Most of the car dealers offer auto loan to their customer under various exciting schemes to grab customer interest and make profit.
Using loan provide by car dealership is higher than bank accounts.
Make Payments on Time
After successful completion of loan and once you get a car loan make monthly payments of loan on time without which will boost your credit score and ultimately get better credit in future.