How Long Does It Take to Get a Car Loan: What You Need to Know
For some reason, the daily traffic condition seems to have gotten worse. This is because the mode of transportation has become more diverse. Now, we have buses, cabs, GrabCar, Uber, private vehicles, etc. The number of private vehicles on the road has also increased. Most especially, since the advent of banks, lending companies and loans.
These banks and lending companies made getting a car easier for almost anyone. This is why nowadays, getting a loan and buying a car doesn’t seem so grand anymore. It seems like having your car is a norm.
Today, we will be giving you basic info on how car loans work as well as its pros and cons. We will also be giving you an idea as to how long does it take to get a car loan.
How Does a Car Loan Work?
A car loan is almost similar to buying your car with your money. Except that you have different options as to where you’re getting the money from. You can get it through a bank/credit unions, dealerships or online lenders.
However, do note that your monthly payment has incurred interest. You can think of your monthly payment as one having two parts/sides. First is the principal. The principal is the actual amount of money you borrowed to buy your car/vehicle. The second one is the interest. It is the fee that you’re going to pay to the lender for borrowing the money.
Also, note that your monthly payment may vary depending on when you pay. If you pay earlier, later or on the exact day/date you are required to will affect your monthly payment.
Advantages and Disadvantages of a Car Loan
Though getting a car loan might sound as natural and appealing to you the first time you hear it, there’s always two sides to coin. It is important to consider all the advantages and disadvantages of a car loan before getting one.
Factors such as your monthly income, expenditures among all others should play a very significant role in your decision making.
One of the main disadvantages of getting a car loan is the interest. Not being able to pay on time means higher interest. This just means that you’re paying more than what you should pay for. At the end of all those monthly payments, you might’ve paid even more than what you borrowed.
However, getting a car loan will certainly speed up the whole process of buying a car. Getting a car loan means you don’t have to shell out your money in one huge blow just to buy a new car.
How Long Does It Take to Get a Car Loan?
Getting the form or the loan application and filling it up is very easy. However, the waiting game is what’s nerve wracking. The wait on whether your loan is going to get approved or not might worry you until the approved/dismissed application comes back.
Most banks or lending companies will promise you with that "guaranteed same day approval". What they won’t tell you is: the length of your waiting time is very dependent on a lot of things such as your credit history. Do you have a good or bad credit history? Did you submit all the required documents such as your ID or proof of income?
It is crucial that you know all the possible causes as to why your loan approval is or might be delayed. But then again, if you have submitted all the required documents, this process usually just takes about one to two working days.
At the end of the day, it is crucial that you know the pros and cons of getting a car loan. This is so you can weigh your options. Even though getting your brand new car in an instant might sound so appealing in getting car loans, do note that it will have long-term consequences.