We talk a lot about how to get an auto loan, what paperwork you need, how to go about it and so on. But we rarely talk about how long it takes. That changes today. We’re doing to discuss how long it might take for a lender to complete the car loan decision process.
Our auto loans team is going to explain the car loan decision process and typically how long it takes from beginning to end.
How Long Does Car Loan Approval Take?
Not all that long ago, applying for an auto loan meant going to your bank, sitting at a desk while they went through a form and waiting a couple of days for them to call or write to you.
Those days are long gone thankfully. Now the market is wide open and much faster moving.
A decision on an auto loan could take less than an hour or perhaps a couple of hours if you finance through a dealership or us at Dixie Auto Loans. It would only be in rare or unusual circumstances where it would take longer.
The more straightforward your application, the faster you’ll get a decision. If you have exceptional circumstances or further checks are needed, it may take a little longer to get car loan approval in Canada.
The Car Loan Process
If you haven’t had an auto loan before, the process is very straightforward.
Check your credit score: This is usually a first step in any loan application process. As lending decisions use your credit score as a basis for lending. Knowing your score is essential. Checking early also enables you to make any improvements if required.
Save for a down payment: You should ideally do this before or at the same time as checking your score, depending on how long it will take you to save.
Get your paperwork together: Auto loan paperwork usually involves 3 months of wage slips or pay stubs, 3 months of bank statements, proof of ID, address, employment and proof of any other income you might have.
Get prequalified: Auto loan prequalification is a quick check to see if your math adds up. Could someone in your situation with your income borrow the amount you want? What rate might you get and how much would it cost per month?
If you do all those things before contacting us, the auto loan application shouldn’t take longer than an hour. If you’re employed and can prove everything, you could get an instantaneous decision.
If have bad credit, have missed payments on your credit report, you’re self employed, a contractor or there are elements missing from your paperwork, it may take a little longer.
Typically, an auto loan application can be completed and agreed within an hour, two at most.
As long as you have your paperwork, your application looks good and you have prepared properly, you could get a decision within an hour or two and the cash not much after that!
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!