Sep 07th, 2023
The Top 5 Factors That Influence Your Auto Loan Approval - Rostron Finance
Hey there, so, you’re gearing up to buy that dream car you’ve been eyeing for a while, and you’ve got your heart set on it. Awesome! But here’s the thing – when it comes to getting that all-important auto loan approval, there’s a bit more to it than just picking out the perfect colour. Don’t worry, though – as friendly finance experts, we’re here to give you the lowdown on the top five factors that can really make a difference in whether you get that green light for your car loan.
So let’s rev up and dive right in!
1. Credit History and Score
Alright, let’s talk about credit scores. You know that three-digit number that’s been following you around? Well, lenders pay close attention to it too. Your credit history and score show them how reliable you are with repaying debts. So, keeping your credit score in good shape can help you score a better deal on your auto loan. We’ll show you how to check your score, offer tips on boosting it, and explain what lenders typically look for in those magic numbers.
Steady income equals steady payments. Lenders want to know you’ve got the financial horsepower to handle those monthly loan payments. They’ll check out your work history and how solid your income is. Don’t worry – it’s not about being a millionaire, but about showing that you’ve got a reliable income source. We’ll give you pointers on how to demonstrate your financial stability and make lenders feel confident in your ability to keep those wheels turning.
Okay, here’s a quick math lesson – capacity or the ability to meet your financial commitments is a necessity for your finances. Lenders use formulas to see if you’ve got too much debt compared to your income. They want you to comfortably manage your existing debts along with the new car loan. We’ll show you how to calculate your capacity (don’t worry, it’s easier than algebra), why it matters, and some strategies to keep it in the lender’s sweet spot.
4. Deposit
Imagine your deposit as the handshake that seals the deal. A larger deposit doesn’t just mean less borrowed money, it also tells lenders you’re serious about this purchase. So, if you can swing a bigger deposit, then go for it! We’ll explain how a deposit can affect your loan terms.
5. Loan Term and Vehicle Choice
The length of your loan and the car you choose are like the twists and turns of the loan approval track. Some lenders have preferences on how old a vehicle can be at the end of a loan, and others may have a preference for certain types of vehicles. We’ll break down the different loan term options, help you understand how your vehicle choice can sway the lender’s decision, and guide you toward picking the loan terms that match your financial goals.
At Rostron Finance, when it comes to car loans, we’ve got the experience and knowledge to get you the best deal – no matter your circumstances. With over 50 lenders to choose from, we can help you look at the interest rates, terms and fees associated with each loan option to determine which one offers the best value for your needs and budget.
While the car loan approval process can be complicated and daunting, understanding the ins and outs of the process can help ensure you get the best result. By keeping tabs on your credit score, showing off your stable income, managing capacity, maybe boosting your deposit, and aligning your loan term and car choice, you’re not just aiming for loan approval – you’re aiming for the best possible deal.
So, get out there, armed with these insights, and drive home in that dream car with confidence! If you need help getting behind the wheel of your dream car faster give Rostron Finance a call on 1300 70 70 39 – we’d love to help!
