Applying for a Special Finance Loan – What to Expect and What to Bring
Purchasing a new vehicle can be nerve wracking – especially when you’re in need of special financing. The stress of applying for an auto loan knowing your credit score is low or nonexistent can be overwhelming. At the Midway Auto Outlet in Kearney, we understand this and have strived to create an environment where anyone can expect professional, quick and confidential service. You shouldn’t have to sacrifice selection or quality service just because of your financial circumstances.
Here’s what to expect:
As far as service goes, you should have the same expectations as anyone looking to purchase a new vehicle. Expect large selection of vehicles, nice facilities in which to do business, a reputable company that will be around for years to come and vehicles which have been put through a service inspection process.
However, there a couple of services people tend to not think of when purchasing a vehicle.
- Credit Reporting. All of Midway Auto Outlet’s special finance lenders report to the credit bureaus. If one of your goals is to raise your credit score with your auto loan this is a must. If a dealership or lender does not report the loan to a credit bureau, there is no positive effect on your credit score.
- Simple Interest. All of Midway Auto Outlet’s special finance programs are simple interest. When someone purchases a vehicle through special financing the interest rate tends to be higher than a traditional loan by an indivdual with good credit. If a customer can build their score up in twelve months we want to be able to trade that customer into another car at a lower interest rate. When the loan based upon simple interest, the customer does not have to pay future interest on the auto loan when paying off the loan.
- Traditional financing for the future. Midway Auto Outlet has lenders which offer traditional low interest financing on top of our special finance programs. As a customer pays their loan on time and their credit score improves. Once their credit score increases, Midway Auto Outlet has the means to trade them out of the higher interest loan they have while rebuilding their credit and get them their next vehicle at a lower interest rate.
- Down Payment. While not every special finance program requires a down payment, most do. So be sure to plan ahead and budget out how much money you can put down on the vehicle. Down payments reduce the amount financed saving you interest expense and lowering the payment.
So what should you bring when applying for a vehicle financing through a special finance program? There are several items which are usually required once the loan has been approved. Because Midway Auto Outlet’s finance decisions are usually within a couple of minutes you can bring the needed documents along with you on your first visit, saving you time. The items listed are needed because Midway Auto Outlet’s lenders are looking at the whole picture and not just at the credit score.
Here’s what to bring:
- Proof of Residence: this can be a bill of any kind with your current address listed. Usually a utility, cable or cell phone bill work the best.
- Proof of Income: Obviously a current paystub works the best. In the cases where people do not get a pay stub because of the source of their income, an award letter or two current months bank statements showing the deposits also work.
- Proof of Insurance: Bring your current automobile insurance card.
- Checkbook or bank statements: Many of the special finance programs offer automatic payments. You will need your account numbers to enroll.
- Driver’s License: Obviously when purchasing a vehicle be sure to bring you current driver’s license.
No matter what your situation Midway Auto Outlet would love the opportunity to arrange your next vehicle purchase. While all loans require bank approval, Midway’s Special Finance programs are designed to help out in many different low credit situations. If you have any questions, feel free to stop in and see us at 715 Central Avenue or call us at 866-358-2012.