Shopping for a new car can feel overwhelming, especially if this is your first time buying a car. We’re here to help you learn more about auto loans and help you through the process.
What is an Auto Loan?
An auto loan is a way to finance the purchase of a vehicle and can be used to purchase new and used vehicles. A lender, like Wasatch Peaks, provides the money for the vehicle up front and then you, the borrower, will pay back the full loan amount to the lender, plus interest. This is typically paid back with monthly payments.
Loan Factors to Consider
There are several factors to consider when you are getting your auto loan.
• Loan Amount: This is the amount of money you are borrowing.
• Annual Percentage Rate: The APR is the interest rate on your auto loan.
• Loan Term: This is how long the loan will last until it has been paid back in full.
• Loan Payment: You will pay back your loan with a set payment schedule.
How to Apply
Applying for an auto loan can be easy! You’ll need to fill out an application for the lender, which usually includes basic information about yourself and your employment. Lenders will also require ID and at least your two most recent pay stubs to verify your income. Once you have all this completed, your lender will do a credit check.
With all of this information, the lender will then determine how much you can qualify for on your loan and options for the payment and loan length. You can avoid heartbreak and plan your budget by getting a pre-approval prior to shopping for a car. Once you’ve decided to proceed with your loan, you’ll need to sign the paperwork agreeing to the loan terms and then the funds will be provided to purchase the vehicle.
Our specialists at Wasatch Peaks can help you with your car purchase! Get started today by calling 801-614-7959 or visit your local Wasatch Peaks branch.