The process of financing a car through an auto loan brokerage is usually pretty simple and can save you a lot of time and effort. But what is the process involved in working with them? Let’s take a look:
Tell Them What You Want
The first aspect of working with an auto loan brokerage is explaining to them what you want. If you’ve already found a vehicle that you’re interested in, their job is to get you the best rates available based on your credit score, the amount of money you have to put down on the vehicle, as well as any trade-in vehicle you may have. When initiating the process, you will first be asked these questions to help them determine which lending companies are likely to work with you.
They Contact Financial Institutions
After you’ve given them the information they need, your job is to sit back and let them work. They will communicate with their vast list of contacts to find out what the best interest rates and loan fees are. Once they find the finance companies that are not only willing to work with you, but also offer the lowest fees, then the broker will present you a few to choose from.
What’s Next in Financing a Car?
After you and the broker have determined the best company to work with to finance the vehicle, and you have set up a loan option with monthly payments (which will be billed directly from the finance company), there are a few steps to take car of. For instance, if you’re working with a private seller, you want to ensure that he or she is the true owner. Some brokers handle this step for you by conducting a title check. Also, you’ll need to know how much to pay to register the vehicle, including the sales tax costs, which can be pretty hefty. After all is said and done, you’ll be ready to go grab your car keys.
So now you have a better idea of what to expect when visiting an auto loan brokerage. That wasn’t too bad, was it? This means, your next step in financing a car is to find a broker to work with; that is, unless you’d rather do the work yourself, which is also perfectly acceptable.