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Do you know how to buy a car on credit?

by Faysel
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Many have thought about buying a car, whether for personal use, a family member or a friend; but very few know that getting a car is not as simple a procedure as it seems, on the contrary it is a process that can last several weeks.

There are too many factors that influence when buying a car: the monthly payments, the term, the down payment, the ability to pay, the car insurance, the car model and even the color.

In addition to this, you have to decide if it is going to be new or pre-owned; even if we are going to buy it on credit or in cash.

If you are a person who is thinking of buying your first car, you have two options: the first is to continue reading this article to give you an idea of how to buy a car or the second, you can hire an agency to do everything for you.

How to buy a car on credit?

Let’s start with the assumption that you have already decided what car you want, in what term, and how much you want to pay monthly.

If you do the procedure on your own, the first thing you should do is get credit from a financial institution. For this you must present to a bank with the following documents:

  • The credit application. You must ask the financial where you will do the procedure.
  • Current proof of address.
  • Recent proof of income, such as pay stubs or pay stubs.
  • Official identification.
  • Credit request

You must fill it out with your personal data and with the car’s data, such as the price, the term and the monthly payments, insurance and the down payment. The bank executive must support you at all times.

The credit application along with your documents will be your credit file, which will be evaluated by the bank or the finance company.

To define whether or not your credit is approved, the finance company will also verify the information you provide with the people you presented as references.

It is important that you inform family and friends about the procedure you carry out, because if they do not answer or refuse to provide information, the procedure can be delayed or even canceled.

The finance company or the bank will take between two or up to a week to define if the credit is granted or not. On many occasions it happens that you are approved for credit, but under certain conditions, a different term or a higher interest rate.

Credit approved

Once you have approved the credit, you must take a copy of the approval to the agency, so that it can give you the account numbers to which you can make the deposit of the down payment.

Once the down payment has been made, it will take one or up to three days for the agency to see the payment reflected in your account, until that moment the car invoice will be prepared in your name.

Until now, about ten days have passed since you went to the agency to see the car and then to the financial one for the credit.

Credit agreement

The next thing will be for the agency and the finance company to draw up the credit contract, in which it basically establishes that the finance company will pay the total value of the vehicle to the agency so that it can be granted to you and you agree to pay said credit with the conditions that are established from the request.

One of the most important steps to buy a car on credit is the signing of the credit agreement, and the agency and the finance company will make an appointment with you to do it.

Payment of the value of the car

One of the steps that in many cases is not taken into account, although it is extremely important, is to know when the finance company will pay the value of the car to the agency so that you can dispose of it.

Processing of plates and circulation card

To avoid problems when you take the car out of the agency, you must process your license plates and registration card. This procedure can be done by the agency for you or you can do it on your own.

You finally release your car

With the value of the car paid and the contract signed, the agency will release the unit and make an appointment with you to pick it up or you can decide to take it to a place near your home or work.

This whole process will take you a couple of weeks in the best of cases, the time in which you will have to go to the financial or bank and to the agency on several occasions.

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