Applying for a Car Loan: Banks VS. Auto Loan Specialists

Who Should You Trust for YOUR Car Loan?

Whether you’re shopping for a new or used car, there’s a good chance you’ve decided to finance your purchase with a car loan. We’ve come to this conclusion as, according to a Kelly Blue Books survey, only one out of five potential car shoppers actually pay cash when purchasing a new vehicle – a mere 20%. And while that figure certainly fluctuates, there’s one question that remains constant: while searching for the best choice for financing your new purchase, should you deal with a bank… or choose an auto loan specialist instead?

That’s a fair question, especially in the Greater Toronto Area, where there are so many options for car buyers to choose from. And in a competitive market and re-surging economy, you can probably find distinct advantages to dealing with either of those choices for your car loan.

Besides, depending on the value of your car purchase and the size of the loan you need, the actual interest rates you’ll pay for a car loan in Ontario are likely to be similar with either choice. After all, the internet makes it rather easy to compare rates online between virtually any finance company out there in minutes.

Having said that, perhaps there is a better question we can ask, one that provides a more specific answer to satisfy your curiosity, but also, your values, preferences and current needs: what’s even MORE valuable to you than money?

For some people, it’s their time. For others, it’s convenience, or pristine, fully attentive customer service. But for many of us, it’s being able to actually access an auto loan in spite of a poor credit history or a bad credit rating. For many of us, to even find an auto loan solution that fits when you’re staring bad credit straight in the face is usually much more important than a temporary increase in the interest rates we’re paying.

Here is where Auto Loan Solutions comes in.

In our non-stop, fast-paced world, time is of critical importance. Consumers often want whatever it is they want as quickly, and conveniently, as possible. Fortunately, this is an area where auto loan specialists can really shine. In fact, some of our best specialists can typically get you approved for your standard car loan in under an hour, even though they’re likely dealing with the same financial institutions you would contact if you were applying for the loan yourself.

As an independent auto finance company, Auto Loan Solutions partners with major banks, sub-prime banks and even private lenders to get you on the road as soon as possible. Of course, as we arrange multiple car loans for buyers on a daily basis, banks recognize the volume of business we provide, even for those applying with poor credit – click here to learn how to rebuild your credit with an auto loan.

To compare, going to the bank directly to get a car loan could take several days before getting approved, or denied. The bank will also ask for certain conditions to be met, including proof of income (pay stubs, a letter from your employer, T4 slips, a notice of assessment, etc.), and also likely ask for proof of rent or mortgage payments. The entire process could take up to a week, or more, to complete.

Once all these conditions are met, only then will you be able to sign a deal and collect a bank draft. Some banks will ask for proof of vehicle purchase, though your dealership would then send a provisional bill of sale via fax/email. You may also need to secure the vehicle at the dealership with a deposit, then go to the bank to apply for the loan.

Getting a car loan through a dealer’s in-house auto loan specialists, however, can happen as quickly as receiving approval for your car loan in under an hour, from start to finish.

Fast Credit Approval and More

Another advantage of dealing with a reputable auto loan specialist as opposed to a bank is having your application reviewed very carefully, with all factors surrounding your loan examined by an industry expert before it’s sent to any lender for approval. Lenders also often extend credit to applicants before triggering an actual ‘hard inquiry’ credit search.

Beware of Too Many Careless Credit Searches

Each time a lender/creditor makes a ‘hard inquiry,’ it has the potential of directly affecting your actual credit score and can even bring your score down by 3-5 points each time. So when some ‘deal brokers’ carelessly submit your application to 8-10 lenders and hope for the best, it actually hurts your credit score AND your approval prospects!

Finally, if you’re concerned that you may not qualify for a traditional car loan with the banks, an in-house car loan specialist may still be able to help. Whether you have experienced bankruptcy or even missed some payments on your credit cards, one of our car loan specialists may be able to get you approved on the vehicle of your choice with the lowest financing rates and best terms available. If you’re in need of some good budgeting tips, click here.

Remember, a bad credit history doesn’t need to follow you around for the rest of your life. With enough time, patience, and hard work, all poor credit situations can be improved and overcome. A credit score is only one small factor that comes into effect throughout the credit approval or car loan process. With the right vehicle selection and guidance, you can always improve your current credit score to enjoy a better future.

Want to enjoy outstanding customer service AND fast, same-day car loan approval? Contact Auto Loan Solutions today to discover our ‘vested interest’ in getting you the best car loan terms you qualify for! Also, make sure to check out our Facebook page for customer testimonials, reviews, and more!