How Long Does It Take To Have My Car Loan Approved?
This information has been provide to Web Wombat by www.carloans.com.au
For a very usual, common application, car loans would usually be approved within 24 business hours. Dependent on lender used and all accurate information being provided upfront, as long as the applicant has a clean credit file and the requested repayment fits within the lender’s car loan calculator that determines affordability, then quite often an approval can happen automatically once the loan has been submitted through the lender’s system.
Some applications would take longer than others though, as certain information in the application may need to be more thoroughly investigated, or perhaps the car is outside usual lender guidelines or policies.
Things To Ensure A Quick Car Loan Approval
- Supporting documents prepared to send
- Accurate Data in your application
- Accurate vehicle details including price and seller’s information
- Have quick access to a fax or scan and email
These tips will assist in a quick approval. I have seen on occasions for example, where a borrower wants to purchase from an auction and the requirement from the auction that payment is settled within 24 hours of the winning bid. Time is of the essence in this circumstance.
My recommendation in this case would be to apply for a pre-approval based on a similar car and price range they would be looking at. Once approval with the lender is obtained, the client can be comfortable knowing that the lender will approve the loan based on their application, but subject to the vehicle fitting the lender’s guidelines. In most cases auction purchased vehicles are priced cheaper and unless the age of the car is outside the lender’s policies or guidelines, pricing is rarely an issue.
Once the bidder has won their new car, settlement process can usually proceed very fast and this can ensure that the auction is paid within their required 24 hour timeframe.
Car loans are usually quite a quick turnaround. If your application is straight forward and you have all the required information and supporting documentation, you should expect an answer within 24 hours. This cannot be guaranteed for all applications though as not every applicant or deal is the same.
What Information Do I Need To Apply For A Car Loan?
In order to apply for a car loan, you would need to submit an application, which would give any credit assistance provider an overall understanding of your current position.
The application will request information which would include your residential and employment history, your marital status and how many dependents you have, and all of your income and expenditure and your assets and liabilities.
The application is what is read by any lending analyst to assess your application and would be looked into further as long as what is stated on your application shows affordability based off the lender’s car loan calculator. There would be a minimum set of documentation in most cases to verify the information in your application. Below is a list and reasons why.
Driver's Licence
This document has the main identifiers that would match up with your credit file. The three most crucial identifiers to match up to your credit file are: - full name, your date of birth and your licence number. Your address is somewhat important, but this can change often. Your Driver’s Licence may also be used as proof of current address.
Proof Of Income
Proof of income could be pay slips, bank statements, tax returns, financials, Centrelink statements, and rental income statements for investment properties and any other form of income that was declared on your application. This is used to make sure you can afford to repay the loan and the income declared on your application is accurate.
Other Loan & Credit Card Statements
These documents may be used to make sure that the loan liabilities repayments stated or credit limits are accurate and is to make sure you can afford to repay the loan.
These are the basic documents you may need in addition to your application, but dependent on what else is stated, you may need more supporting documentation to substantiate the data entered into your car loan application.
This article was brought to you by www.carloans.com.au
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