What are the requirements for applying for auto financing?

You must be at least 18 years with a minimum income of $2,000 for a direct auto loan. Your total income can be considerably less when using indirect financing through an auto dealer. You also need to have been employed at the same place for at least two years.

What determines my auto loan interest rate?

Interest rates are set according to the current condition of your credit. Lenders and auto dealers use a credit rating score and their own internal rating criteria to determine APR to be set for your auto loan.

Will I be required to have a down payment for the purchase of my auto?

Your present credit standing will determine the need for a down payment. It is always best to be prepared to pay a down payment.

What is the difference between "Direct" and "Indirect" auto financing?

Direct auto financing is the same as a cash voucher or draft approval from financial institution for shopping at a dealer of your choice. An Indirect Auto Loan is financed by the dealer.

What is the difference between Prime Lending and Special Finance or Sub-prime auto loan?

Prime lending is for people who have outstanding credit, with no recent negative reports on their credit history. Special Finance, also know as Sub-prime auto loans, are granted to people who have less than ideal credit.

How do I know if I'm getting a fair deal when purchasing a new or used auto?
The standard industry calculation for determining a fair price on a new auto is: Invoice price + upgrade options + destination charges - manufacturer rebates/incentives X 5% dealer profit. When financing a pre-owned auto, make sure to shop around without making an immediate commitment to the auto dealer. Research the retail/trade value and then go to the dealer and offer somewhere between the current retail and trade value.

Does applying to multiple lenders for auto financing have a negative affect on my Credit Bureau score?

No. At the present time, credit scoring agencies consolidate all credit inquires associated with one type of buying within a 2 week time frame for socring purposes.

Can my auto loan be used to purchase a commercially rated vehicle or a vehicle considered "classic"?

No. Loans are provided for a private passenger motor vehicle, light truck, or van for personal, family or household use. The autos being financed must be no older than 6 years and have less than 80,000 miles and be no older than 6 years old.

I already have an auto being financed, can I still get another auto loan for a second automobile?