How to Get a Quick Car Loan

May 31, 2013

Cars, Running Costs, Tips

fast car loanIf you are looking for a quick finance loan then there are some steps you can take to ensure it gets done in the time-frame you want.

Below is some helpful information about the loan approval process and the things you can do to speed up the process.

How long does the car loan process take and what are the steps for car loan approval?

Step 1) Conditional Approval. This happens quite quickly and involves you submitting initial information about your financial circumstances. Based on the information you provide, you will be given conditional approval for your car loan which is essentially just the bank saying “if what you have told us is correct, we can provide you with a loan”.

Tip for fast loan approval: Fill out the application correctly and thoroughly. Any omissions will delay the process and potentially result in a withdrawal of approval later in the process.

Step 2) Final Approval. The lender will require you to submit evidence to back up the financial information you provided to gain conditional approval. This process can take some weeks and has a habit of dragging out because of the time it takes to mail out documents, compile information, send documents back etc.

Tip to get a car loan quick: Have all your pay slips, group certificates and bank statements compiled and in one place ready to grab when they are requested.

Step 3) Settlement. This process takes just one or two days after the car finance is approved. Once the money has been transferred from the lender to the seller of the vehicle, you can take home your car!

Tip for quick car finance: Hit the phones and make a pest of yourself! The more you keep in contact with the seller and loan provider, the faster the process will take.

Top 5 tips to speed up your car loan:

1) Be prepared. Have hard copy and electronic copies (scanned copies is fine) of pay slips, letters of employment, investment income statements and bank statements. By having them in both hard and electronic form will cut down precious time to forward the required documents

2) Organize your insurance. Some lenders will require proof of insurance before they provide final approval. Do all your ringing around as soon as conditional approval is given to ensure that you have the right cover for your needs. Insurers will be able to issue insurance prior to you taking ownership of your vehicle.

Here is our car insurance overview article to get you on the right track to finding the best car insurance policy for you.

3) Referees. You will be asked to provide referees. Have 3 referees ready to go including name, address, phone number and email address just inc are all that information is required.

4) Be prompt. Minutes literally count and every part of a day that is wasted adds up. Sometimes just a matter of 15-30 minutes can be the difference between the person completing your loan documents late in the afternoon one day as opposed to completing it the following day. If this happens one of two times, the whole process can be drawn out by 48 hours or more.

5) Follow up. There are parts in the process where you are not in control of the pace, such as when loan documents are being drawn up by the bank. Your documents can be drawn out by a couple days due to an unmotivated employee working for the bank sitting on the task longer than they should.

To keep the process moving, politely inquire with regularity as to where things are at and ask for confirmation of what steps are going to take place and when – people usually work well to deadlines that are mutually agreed.

Alternative fast car finance option:

Using a credit card to purchase your vehicle is an option that many people use. Nowadays they come with low interest rates and the approval process is quick, or people have a credit card already approved that they can use, negating the need for a car loan in the first place.

Things to be aware of:

Many car dealers are motivated to make quick sales in order to hit sales targets. One of the sales tools in their arsenal is offering “same day approval”. This is only conditional approval however, meaning that steps two and three above need to be completed anyway!

One-stop-shop car dealers: Some dealers sell the cars and provide the finance. This can make the process of getting a quick loan much more achievable for you. However, the speed of approval can come at the expense of a better deal and often it is worthwhile taking an extra day or two to shop around before jumping right into the quickest car loan available.

As you can see, getting a car loan approved in the shortest possible time is largely a result of being personally organized. To get the process done quicker, it helps if you are working with good sellers and with a reputable finance lender.

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About Damian

Damian is the author of Rate Your Drive Australia, a passionate "car guy" and all round nice bloke. He is committed to finding the most up-to-date motor vehicle information from around Australia, which he shares on his personal website. Connect with him on Google+

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  1. What types of car finance are available? | - May 31, 2013

    [...] Many people require a loan quite quickly, so I have put together a helpful guide to getting your loan approved quickly that you can access here. [...]