Having a personal car is something that is important to many people. Others simply need it for their professional or other activity. But buying a car is not given to all portfolios.
To buy a car a lot of people go through auto credit. Indeed, it is the fastest and most effective way to become the owner of your personal vehicle.
The question that arises is: ” What is the duration of approval of a car loan? “. Obviously, the answer will depend on several parameters, like the institution in which you will contract your loan, your situation, etc. Here’s a detailed summary that will teach you everything you need to know about auto credit approval times.
Summary of the time required to approve a car loan
Be aware that the time to approve an auto loan is not long . We do not talk about long months of waiting and negotiation like a mortgage, but one, two or three weeks at most. Nevertheless, it must be kept in mind that this duration varies according to the bank you choose, your financial situation and especially the preparation you have done upstream.
Indeed, doing it at the last minute can significantly lengthen the auto credit approval process. In general, when you need a car as soon as possible, having to wait one or two more weeks can become a real headache for the majority of people. Let’s see how to prepare well.
Speed up the approval time of your car loan
Here is a guide that will explain all the steps to follow to reduce the approval time of your car loan . Following them step by step will guarantee you a fast and trouble-free access to benefit from your new car as soon as possible.
- Start by defining the budget needed to acquire your vehicle.
- Contact several credit agencies to explain your needs and ask for prior agreement. This step does not commit you to anything and gives you an idea of the budget that will be made available to you depending on your situation.
Once you have made these preliminary steps and you have carefully compared the rates offered by the banks, you can start the vehicle ordering procedure and continue with the following steps:
- Prepare all the proof that you will have to send back with your credit report: last payslip, last bank statement, bank account statement, proof of identity, proof of address and last tax notice. Know that by preparing all these documents you will significantly reduce the time of file referrals.
- Sign the vehicle purchase order and the dealer will ask you to pay a deposit. Pay attention that the contract stipulates that the vehicle will be financed by a credit, so the law provides for a 14-day retraction period during which you can break the purchase contract at no extra cost.
- Send your credit report to the bank of your choice. Your file will include all the justifications quoted beforehand, your purchase order and the signed contract.
When your file arrives at the banking organization it will be the subject of a final study. Following this you will be credited the amount to your bank account in the following days (about 2 to 3 days). Know that there is also a withdrawal period, mandatory and regulated by law.
NB: usually dealers will offer car loans related to the concession. Know that it is very rare that their rates are competitive with those of banks so refrain from taking out a loan at home.
In the end it should be known that to shorten the time to obtain a car loan must be prepared and do not go at the last minute. Gather all your receipts and make a request for prior agreement to know what budget you hold.
When you have signed the order form you will have to wait a few days for your vehicle to arrive, which will give you the time to send your credit agreement.
To know: going through a credit comparator gives you not only the opportunity to get an idea of the rates on the market, but it also gives you considerable support if you want to negotiate your borrowing rate.