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Can you get a car loan to upgrade your car

Can you get a car loan to upgrade your car?

Posted by on Jan 13, 2021 - Archived under Car Loan

We talk a lot about car loans and necessity here but that’s not the only reason you might want a new car. You could also be in the envious position of wanting to upgrade your current vehicle for something newer, more luxurious or a car that includes the newest safety or autonomous technology.

Can you get a loan if you want to upgrade your car?

Yes you can!

Car loans for any reason

You can get a car loan for any reason you like. Sure, we deal with a lot of people who need a car loan for work or so they can take the kids to school. We also deal with people who want a city runabout or want an off roader for the weekend.

We provide car loans for all kinds of people, for all kinds of reasons. An upgrade is just one of them.

The same rules apply for this kind of car loan as for any type of loan.

Prepare yourself

If you’re planning to upgrade your car and will use a car loan to do it, you should prepare everything in advance. Check your credit report to make sure your score is intact and that everything on the report is accurate.

Prepare your down payment or trade-in

If you’re saving for a down payment on your upgrade or are planning to trade in your current car, now would be a good time to make sure you have enough saved or that your trade-in is ready.

Perform any repairs on your car, make sure it’s clean and perhaps have it serviced, depending on the last time you had it done. While this can cost money, it is often cheaper than the amount taken off the trade in value as a result of not being serviced.

Prepare your application

Once you have a deposit or your trade in is ready to go, now is a good time to collect all your paperwork. A lender will require proof of ID, proof of address, proof of salary, bank statements and any supporting paperwork.

If you’re self-employed, you will need to present bank statements and your accounts for anything up to 3 years to prove your income.

The more paperwork you have demonstrating your financial position and proving you can afford the loan, the more likely you are to be accepted for it.

Treating yourself to a newer or more luxurious car is a great use for a car loan. If you can afford it and want to drive something more comfortable, why wouldn’t you?

For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!

Let’s get in touch! 

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For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!

Let’s get in touch! 

###

Dixie Auto Loans