How to Qualify for an Auto Loan

Honda CR-V Parked in Front of House with Family Outside


Questioning how to get a car loan around Monroe? Luckily, it’s not too difficult as long as you have the appropriate documents. Though keep in mind that while applying isn’t difficult, your credit score will play a role in being approved. Learn more about what you need to qualify for a car loan below!

What do I Need to Qualify for a Car Loan?

For starters, there are documents and information that applicants need when applying for any loan from any financial lender:

  • Proof of Income: In order to secure financing for a new or used vehicle, you’ll need to be able to prove your income so the lender has confidence that you’ll be able to keep up with payments. For most lenders, pay stubs or bank statements will suffice, but in some cases a lender may wish to contact your employer.
  • Proof of Insurance: Auto insurance is not only required by law, but it’s also required to get a car loan. While you can often purchase insurance at the dealership, it’s also something you can take care of ahead of time.
  • Identification: To secure a loan, identification is required. You should note a photo ID is often not enough — you’ll likely also need corroborating documents such as a current utility bill in your name or current bank statements with an address that matches the one on your ID.
  • Proof of Residence: This gives lenders confidence they can contact you if needed. The majority of the time, a current utility bill will serve as adequate proof of your address.

In addition, if you are planning to trade in your current vehicle, you will need that car’s title and registration so you can prove ownership of the vehicle.

Couple Receiving Car Keys After Signing Papers

Do I Need a Good Credit Score to Get a Car Loan?

If you have good credit, you will more likely be able to secure a loan at a low rate. A “good” credit score can vary by lender, but having a good credit history can help you secure a lower annual percentage rate (APR) on your loan. Even if you have bad credit or no credit, many lenders will work with you. In this case though, you may need a co-signer or a willingness to accept a higher APR.

How to Get a Car Loan: Visit us at Middletown Honda!

At the Middletown Honda finance center, it’s easy to apply for financing online. We can help you secure the loan amount you need to get the car, truck, or SUV of your dreams. Contact us or make the short trip from Goshen to chat in person about securing the financing you need.

More From Middletown Honda

  • All New 2022 Honda Civic Type R

    All new Honda Civic Type R arrives in Tokyo Auto Salon. Rumors say this vehicle will be available to the public late 2022. There isn’t much spread about the new updates and features of this Type R. But there has been hints of it having some test runs and production will happen soon. Its just…

  • 2023 HR-V Teaser

    2023 HONDA HRV. WHAT’S TO COME HONDA PUT OUT A TEASER FOR THE NEW 2023 HONDA HRV. In 2023 the Smallest crossover from Honda will be completely redesigned. With the same 4 models, LX, Sport, EX, EX-L they all will be similarly priced from previous, and will be expected in Spring of 2023. Hoping for…

  • One Door Closes… A New One Opens

    New Year, New Car. 2022 is just around the corner. Looking for a fresh start to the new year? The New 2022 Pilot is as fresh as it gets with two new models. The 3 row SUV entry models have been replaced. So out with the EX and LX and in with the upgraded Sport…

Search
Contact
Chat
Search
Contact Us
Chat
DI Move Pixel
Middletown Honda 41.4607833, -74.3744693.