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Publish Date - July 22, 2022

Author: Staci Bailey

Categories:   Tips & Insights For Car Buying    Auto Loans & Financing    The myAutoloan Difference   

How Long Does It Take to Get Approved for an Auto Loan?

Buying a new car can be exciting and typically comes with an eagerness to drive the new vehicle. But before you can take your new wheels for a spin, you’ll have to make sure that you can pay for them. It will most likely be necessary to secure financing before taking ownership of the vehicle.

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Buying a new car can be exciting and typically comes with an eagerness to drive the new vehicle. But before you can take your new wheels for a spin, you’ll have to make sure that you can pay for them. It will most likely be necessary to secure financing before taking ownership of the vehicle.

The most common place to look for a loan is your local bank or credit union. Financing at the dealership is another option. Finally, there are online resources such as myAutoloan to consider when you need to get approved for an auto loan. Each option has different strengths and the timeline for getting your auto loan approved will depend on who you choose as your lender.

Getting Approved For A Loan At A Bank

These days most banks allow you to submit an application for a loan online. You fill in details about your financial history and indicate what type of loan you are looking for. In most cases the last step is to book an appointment at a local branch but sometimes this is not part of the online application process and you will have to follow up with the bank for an appointment.

If you’re lucky the loan officer will then call you to get more information before your in branch appointment. They may also tell you what documents you need to bring for your meeting. If your loan officer doesn’t give you this information ahead of time you will have to arrange to have the documents delivered after your appointment.

If you have come to the bank with all the necessary documents, you will be able to file for an auto loan that day. The loan officer will go over your application and give you your loan options as well as the interest rate you qualify for. The next step is to sign the paperwork and leave it with the loan officer to file for your loan.

You should hear from your loan officer in a matter of hours or a couple of days. If your loan is approved the bank will probably give you the funds in the form of a check that you bring to the dealership to pay for your new car. You may have to pick up this check in person or your bank might be willing to send it to you in the mail.

Not all banks and financial institutions are created equal. If you want the best deal you should really shop around. This means repeating the application and filing process with multiple lenders and that can be quite time consuming.

Getting Your Financing At The Dealership

If you are purchasing your vehicle at a dealership you can save some time by arranging your financing there. Once you figure out the details of your purchase with the salesperson, you fill out a credit application to start the process of getting your auto loan approved. You will have to provide your financial information so come prepared

Typically the finance manager will enter the information you provide into their computer system which may be linked with multiple lenders. The system shops around and finds lenders that are willing to approve an auto loan for you. The approval process happens while you wait and you can have your financing secured before you leave the dealership.

Getting your auto loan financing at the dealership sounds like a sweet deal. It’s certainly simpler than going to a bank or credit union for the loan. The downside to financing at the dealership is that you don’t always get the best deal.

The dealership is often affiliated with one or more lenders and is acting as a middleman who is taking a cut. For this reason the dealership may not give you the most affordable offer but rather the one that is most beneficial to them. Worst of all, the payment that the dealership receives for finding the lender a customer is often passed on to you!

Don’t write off getting financing at the dealership altogether. In some cases the dealership can be the most affordable option and some of their promotions can save you a bundle. However you won’t know if you’re being offered a good deal if you don’t shop around with banks and credit unions and that means more hoops to jump through.

Securing Your Financing At myAutoloan

There is no need to make an appointment with myAutoloan. Access your information whenever you want and submit applications on your own schedule and from the comfort of your home. As far as convenience goes, it probably doesn’t get any easier than that.

The first step to securing financing with myAutoloan is to create your login. Next, select the type of loan you wish to apply for. This will create a private online space where you can store your information and view the status of your applications. Finally complete the secure and confidential application and submit.

myAutoloan gives you similar tools that the finance manager at the dealership has access to but without the hidden agenda and with no pressure. The system pairs you with up to 4 lenders. Review and compare your offers then select the best one for your needs. You will receive an online certificate or check within 24 hours.

There is no obligation to commit to one of your 4 offers. Take up to 30 days to think about it and shop around. If you’re still not ready to commit after the 30 days your offers will expire but all is not lost. Simply resubmit your application and receive 4 new offers.

How long it takes to get approved for an auto loan will depend on the lender you choose for your financing. Getting your auto loan approved with a bank can be time consuming and acquiring financing from a dealership can be expensive. Online services such as myAutoloan are quick, convenient, and a good way to comparison shop but you miss out on the face to face experience. What option you decide on should be guided by what is best for you.