We care for cars!
No Virginian can forget his cars and especially his first car. If you are planning to buy your first automobile, you must know everything about the car financing process in VA. It will enable you to make the perfect car loan choice and allow you to enjoy instant approval.
Are you ready for the Car?
Cars are an important part of every Virginian’s life. If you want to buy a car of your choice, you must be financially ready for it. An automobile is a responsibility because you have to make regular payments. Also, you need to expend money on fuel, insurance, repairs, etc. So, prepare a budget to know if you can really buy the car. This is important because your Virginia car loan will make or break your credit score.
What Factors are considered in approving Virginia Auto Loan for 1st Time Buyers?
Lenders in the Old Dominion State conduct a comprehensive analysis before deciding the fate of your auto loan application form. Following factors are considered to give you an unbiased result:
Credit Score - Higher the score, better it is
Loan Term - Shorter the better
Loan Amount - One that can be managed easily
Car Type and model - Not older than 6 years
Regular Income - At least $1,000
Lower DTI - Maximum 40%
Receipt of Utility Bills
Down payment - 10%-20% of the car cost is ideal
Co-Signer - Someone with a Good Credit Score.
What should be the IDEAL Car Loan Amount?
Virginian lenders will consider the cost of your car. It shouldn’t be too less or too much. If it’s lesser than $7,500, most VA lenders and dealership financing will not be interested in financing your vehicle. Also, the cost shouldn’t be too high because it will cause problems in making payments. So, choose a car that can fit your budget.
Ways of getting Instant Approval on your 1st VA Car Loan Amount
Choose a less expensive Used Car
A used car is ideal as your first car because you can practice your driving skills on it. It will be cheaper compared to newer automobiles. This will lower your loan amount and aid in securing instant approval.
The Down-payment Option
You can manifest your financial ability by making a down payment. 10% of the total loan cost can be used as money down. It will lower the car loan cost and reduce the chances of an upside down auto loan.
If you do not have cash, you can use the money from rebates to make a down payment. But, remember that rebates are available on new cars only.
Now that you know everything about 1st Car Loans, you can get quick approval from Virginian auto lenders. Remember the tips mentioned in this Virginia auto financing guide because it will definitely help you in acquiring first time auto buyer program.
