So, you’re looking to get approved for your first car loan. Our teams at Dick Says Yes in Vancouver and Portland have been helping novice car buyers get approved for more than 20 years and has access to some of the best first-time buyer programs in the country.
We start by helping you understand your credit and show you how an auto loan may set you up for credit success for years to come. We then move on to a “wants and needs” analysis to help you find the perfect vehicle that you will love to drive at a payment you can afford.
Not sure if you want to do any cash-down payment? Have questions about your income and how much of a vehicle you can afford? Do you think you might need a co-signer? Do you want to know the terms of your approval before you ever step foot into our dealerships? We are here to help answer any and all questions you may have and set you up on the road to success with your credit.
No matter what life throws your way, we can help!
So, you’re looking to get approved for your first car loan. Our teams at Dick Says Yes in Vancouver and Portland have been helping novice car buyers get approved for more than 20 years and has access to some of the best first-time buyer programs in the country.
We start by helping you understand your credit and show you how an auto loan may set you up for credit success for years to come. We then move on to a “wants and needs” analysis to help you find the perfect vehicle that you will love to drive at a payment you can afford.
Not sure if you want to do any cash down payment? Have questions about your income and how much of a vehicle you can afford? Do you want to know the terms of your approval before you ever step foot into our dealerships? We are here to help answer any and all questions you may have and set you up on the road to success with your credit.
No matter what life throws your way, we can help!
What do you need to bring with you for approval?
To obtain a car loan approval at a dealership, you typically need to bring the following documents:
Valid Driver's License
Verify your license has not expired, revoked or suspended and ensure the address listed on your license is current and matches your residence.
Proof of Insurance
Take care to include the name of your agent and a reliable contact number. Adding a new car to your policy won't be necessary until approved.
Proof of Residency
A recent bill for utilities, such as water or electric, is sufficient proof so long as your name is listed and matches the address given.
Proof of Employment
A recent pay stub stating your year-to-date earnings is sufficient. Self-employed individuals must provide two years of prepared tax returns.
Personal References
A reference can include anyone that knows you personally, such as a family member or friend, Include full names, addresses and phone numbers.
Phone Number Verification
Any phone number provided must be currently in service and under the applicant's name. Prepaid cell phone numbers will not be accepted.
The amount you should save for a down payment on a car can vary based on several factors, including the car's price, your credit score, the loan terms, and your financial situation. However, here are some general guidelines and considerations:
- Percentage of Car's Price: Traditionally, a common recommendation is to put down at least 20% of the car's purchase price. This can reduce your monthly payments, decrease the total interest paid over the life of the loan, and potentially secure better loan terms.
- Loan Approval and Interest Rates: If you have bad or no credit, a larger down payment might be necessary to get approved for a loan. Additionally, a larger down payment can sometimes secure a lower interest rate, which can save you money in the long run.
- Avoiding Negative Equity: Cars depreciate over time, and a substantial down payment can help prevent you from owing more on the car than it's worth, known as being "upside down" or in "negative equity."
- Monthly Payments: A larger down payment means smaller monthly payments since you're financing a lower amount. This can make the car more affordable in your monthly budget.
- Total Loan Amount: If you can afford a larger down payment, you'll borrow less, which means you'll pay less in interest over the life of the loan.
- Leases: If you're considering leasing a vehicle, the required down payment can vary. Some lease deals might even offer $0 down, but this could result in higher monthly payments.
- Personal Financial Situation: It's essential to consider your own financial situation. While it's beneficial to make a larger down payment, it's also crucial not to deplete your savings or emergency fund entirely.
- Promotions and Incentives: Some dealerships or manufacturers offer promotions where they might match your down payment or provide cash incentives, which can affect how much you need to put down.
- Used vs. New Cars: Down payment recommendations can differ between new and used cars. New cars depreciate faster, so a larger down payment can help offset that initial drop in value.
- Trade-In Value: If you're trading in a vehicle, the trade-in value can act as part or all your down payment, reducing the amount you need to save.
In conclusion, while 20% is a common recommendation, the right down payment for you depends on the factors mentioned above. It's always a good idea to speak with a financial advisor or loan officer to determine the best approach for your individual circumstances.
For over two decades, Dick Says Yes has been a trusted name in the automotive industry, boasting an impressive 20 years of dedicated service to its customers. Our longstanding reputation is built on our commitment to offering quality inventory, which we wholeheartedly stand behind with our "Peace of Mind Pre-Owned Promise." This promise ensures that every vehicle we offer meets the highest standards, providing buyers with confidence in their purchase.
One of the standout features of our dealership is our extensive network of financial partners. With relationships with over 30+ lenders, we have a unique advantage in securing favorable financing options for our customers. This vast network is especially beneficial for first-time car buyers, a segment we proudly specialize in. At Dick Says Yes, we understand the challenges and apprehensions that come with buying your first car, especially when you're in the early stages of building your credit.
Our commitment goes beyond just facilitating a sale. We take pride in mentoring our customers, guiding them not only in securing the best loan for their current situation but also in building and maintaining a robust credit profile for the future. Our expertise in working with those early in their credit journey ensures that they receive the right loan tailored to their needs, setting them on a path to financial success.
When buying your first car, especially if you have limited or no credit history, securing financing can be a challenge. Lenders often look for a track record of on-time payments and good loan management. Without this history, they might be hesitant to approve a loan. This is where a co-signer can be beneficial. A co-signer is someone who agrees to be legally responsible for the loan if the borrower is unable to pay. By having a co-signer with a better credit history or higher income, you may qualify for lower interest rates, making car payments more affordable. Additionally, a co-signer can help you establish and build your credit.
More Questions? Talk to a Financing Expert.
More Questions? Talk to
a Financing Expert.
We pride ourselves on going the extra mile…
And We do more than help you buy Used cars as a first time buyer… a lot more.