How do I get financing for a car?

Most people can't afford to pay for a car upfront, which means you'll probably need to use auto financing to spread out the cost of the vehicle with monthly payments. To get financing for a car, you first need to fill out a finance application, which most dealerships provide online.

Applying for a Car Loan

Although not every loan application is the same, they do follow similar guidelines. For instance, you're required to provide some personal information, including your name, phone number, date of birth, and social security number.

Next, the finance application will probably ask for information about your residence. Don't be surprised if you're asked to provide information about how much you pay in rent or mortgage too.

Finally, the application will inquire about your current employment information. It may ask about your other sources of income too in order to paint an accurate picture of your current financial situation. The purpose of this is partly to determine if you're a high or low risk borrower but also to prevent you from taking out a loan you can't afford.

If you'd like, you can have a co-applicant apply for a loan with you. This can help to improve your chances of being approved, especially if you have fair or no credit. Keep in mind, though, that everyone on the loan is responsible for making payments. So if you can't afford to pay back the loan, the co-applicant will be legally responsible.

Congrats, You're Approved! (But How?)

You now know how to apply for auto financing, but do you understand the factors at play for being approved? To get financing for a car, your application is reviewed by a lender. They use the information you provided along with your credit score to determine if you meet the minimum requirements for a loan from their institution.

Just because one financial lender denies you credit doesn't mean they all will. Some dealerships work with a variety of banks and lenders to get the best rates and conditions for their customers.

Financing Options

When you receive auto financing, there are two options available: direct lending and dealership financing. Direct lending, as the name implies, is a loan given directly from the bank or financial institution. You're given a loan that's applied to the vehicle that you agree to pay back over a specified time period.

Dealership financing, on the other hand, allows you to enter into an agreement with the dealership. In this contract, you agree to pay for the vehicle over a specified period of time in the form of monthly payments. This is the type of loan that most people receive when financing a car.

Have more questions about how to finance a vehicle? Ask our team of financial experts.


  1. Fred Beans Auto Loans

    835 North Easton Road
    Suite 100
    Doylestown, PA 18902

    • Phone: 833-784-1027
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