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How do I buy a car with a bank loan?
I’m buying a new car, but I need to finance a portion of it. I’m fairly certain I want to use my current bank for the loan. How do I buy a vehicle with a bank loan?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
To buy a car with a bank loan, get preapproved, pick the car you want, finalize the loan, and let your lender do the rest.
Preapproval for the
car loan
is a great place to start. With preapproval, you know exactly how much money you can spend, what your monthly rate is, and an estimate of your car insurance rates. With this information, you can adhere to a budget and negotiate the price of your vehicle.After you have your preapproval amount, head to the dealership to see which cars or trims fit your budget. You don’t have to spend the entire preapproval amount; just use it as a basis for your budget.
Once you’ve found the vehicle you want, get the vehicle identification number (VIN) from the dealership. Head back to your lender and provide them with the following
- Proof of income
- Driver’s license
- Proof of residence (utility bills)
- Down payment method, if necessary
After you close on the loan, your bank will give you a check to take to the dealer or they’ll send the money to the dealer electronically. Drive to the dealer, grab the keys, and you’re a proud new car owner!
Whether you use your current bank or another lender, you’re required to carry full coverage car insurance per the stipulations of the loan. So don’t leave money on the table. Download the Jerry app today.
As a licensed broker,
Jerry
helps you find and compare quotes from over 50 top providers in minutes. When you find a better rate, Jerry can help you buy your new coverage and even cancel your old policy!View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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