- 1). Find the car you want to purchase. You can get financing before you find the car you want, but it is easier if you have already chosen a vehicle so that you can tell the lender exactly how much you are looking to borrow.
- 2). Find a lender. Your first choice should be the bank where you have a checking or savings account. Your personal bank or credit union will have a history with you and will know your financial habits, making it easier to get through the loan process. Your second option is the car dealership itself; read more in Step 3.
- 3). Fill out the loan application paperwork. If you are getting financing through a car dealership, they will give you all of the paperwork that you need. If you are finding your own financing on the Internet or from a bank or credit union, you will have to get the paperwork from them. Many credit unions and banks have online applications; check your bank or credit union for details.
- 4). Wait for your credit report paperwork to come through. The lender will ask for your social security number so they can run a credit report.
- 5). Learn your maximum loan amount. Once the lender or dealership has your credit report and completed loan application, they will tell you how much of a loan you are eligible for and if the car you want is in your price range. If it is not in your price range, then you can find another car that is or pay a large down payment to make up the difference between the car cost and the loan amount.
- 6). Sign the paperwork to finalize your financing. The dealership or lender will have you sign the papers agreeing to a payment plan based on the terms of the purchase, which can include how much your down payment or trade in was worth, the interest rate and the length of the payment period.
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