If you have been thinking about getting a loan or credit for a new vehicle, you probably know that there are already many ways for auto finance. However, the most popular way for financing remains the banks and all bank institutions. And when a person needs money for a new car, then he or she just goes to the bank for auto financing.
If you are also one of the people who are dreaming about getting a new car, then there are several things which you need to know. Firstly, a bank will never just give the money (financing) and say: “Here you are, go and get a new car”. This will just never happen! There is a complicated procedure of approving and only small percentage of all candidates will be approved. That percentage has been even lower since the financial crisis spread all over the world and caused unemployment, inflation and even stagnation! I bet that you are wondering how a bank decides which candidate will be approved and which will not be. It is actually very simple- criteria such as incomes, properties, expenses and general financial status are taken into consideration and those are also the main factors which determine a person’s approval or disapproval by a bank.
But approving is not the end of the procedure. When a person is approved, the bank prepares an individual contract which contains the sum which could be given (the auto financing itself), the interest and the monthly installments. Of course, if the bank’s client is not satisfied with the offer, then he or she could just turn it down and try with another bank. It is all up to the person!
However, there is something which I just feel I must share with you. You definitely have to know that bank’s auto finance is often less favorable than if you use the service of auto finance companies. The reason is that the banks’ rate of interest is often higher which is the main factor making the bank auto financing less advantageous. But that should not make you choose to use auto finance companies. If you decide to do so, there is another risk: there are many auto finance companies which cheat their clients in one way or another. A bank or any other kind of bank institution cannot cheat, just because they are controlled by the country and government. So, if you would not like to risk being cheated, then I would advise you to get auto financing from a bank!