How Does Financing Work

Frequently Asked Questions

Get Financing With Auction Direct

Have you been denied credit by other dealerships? We are here to help! When trying to obtain a car loan from a bank there are many factors that determine the approval as well as the rate, the term, any cash down and monthly payments.

Because we are a large volume dealer working with over 20 different lenders, we are usually able to get loans approved where others cannot! Here are some hints and tips that will help the process go faster and smoother!

What Documents should I have ready to send to you that will be needed for my auto loan?

  1. Driver's license or State ID card.
  2. Current proof of car insurance.
  3. Two most recent paystubs for all employment, SSI awards letter, or retirement letter.
  4. Utility Bill.
  5. Cell Phone bill.

Does the type of vehicle I am interested in buying affect my loan approval?

It certainly does! While a $7,000 car that is 15 years old with 175,000 miles on it would seem to have a very low payment just the opposite can be true. Banks prefer to lend on newer, lower-mileage vehicles and many times vehicles costing more can have lower payments.

What do I do if I cannot get a loan on the car I want?

Sometimes it is better having your Sales Concierge work with you to find the right vehicle for you to finance with the right terms. Although the vehicle and terms you may get approved for may not necessarily be your "first choice", it most likely will be the best choice for financing purposes.

Frequently Asked Questions About Financing

If I am a first-time buyer will I need a co-signer for the loan?

Most banks do require a first-time buyer to have a co-signer and/or a joint buyer, with steady income and good credit to obtain an auto loan. There are exceptions so please consult with your Sales Concierge for more details.

Can I get approved for an Auto loan while on unemployment, furlough or any type of leave?

The lenders we work with often require the customer to be employed at the time of purchase. A customer in this situation would be required by the bank to have a co-signer for the auto loan. A co-signer, with steady income and good credit would be needed.

How much money do I need to put down and what is my payment going to be?

That is something that the lender would determine first based on your credit, income and the vehicle you are applying on for the loan. We as the dealership do not determine the down payment.

How long do I need to be employed for to get approved for an Auto loan?

The minimum requirement of employment is typically 3 months or more, however that can vary lender to lender.

How quickly will I know if I am approved?

We are normally able to have an answer within 24-48 hours of receiving the credit application and required documents.

Will multiple inquiries affect my approval for a vehicle loan?

This is a very common mis-conception in our industry. Multiple inquiries are typically done via dealership finance application software by sending your loan request to multiple lenders at the same time, all of whom will pull your credit bureau for approval. As long as a purchase is made and a loan secured within 30 days of your original loan application, your credit score is typically not affected. However, applying for multiple loans over several weeks without actually making a purchase can negatively impact your credit score. Once you have found the vehicle you want and the dealerhsip you want to work with, it is best to minimize auto loan applications from multiple dealerships.