How to get a car loan? Get approved

People who are looking to buy a car for daily use to create convenience for traveling for themselves and their family, but still feel hesitant because they are not sure if they will be approved for the car loan and if they have already borrowed, will they be able to continue paying the installments? In this article, we have tips for getting a car loan to recommend. If you apply them, you will be able to pay for the car comfortably without worrying.

What is a car loan? What are the types?

A car loan is a loan from a financial institution to buy a car. The borrower must pay back the money with interest in installments as agreed. It is an option that many people choose when they want to have their own car but do not have enough cash. Applying for a car loan is divided into 2 types:

Car hire purchase loan

A car hire purchase loan (Auto Loan) is a car hire purchase in which the buyer must pay the rental fee in installments until the specified period is complete. When the full number of installments has been paid, the buyer will be the full owner of the car.

Advantages

You can get a car loan without a lump sum and do not waste time saving money.

The interest rate is fixed, making the installment payment the same every month.
Suitable for buying a car for daily use Or to expand your career
There is a long repayment period, so it is not too burdensome to pay each installment.
You can close the debt if there are not many installments left.

Limitations

If you do not pay on time, including the amount specified in the contract, the financial institution that is the lender, can seize the car.

Car loan from finance

Car loan from finance (Auto Finance) is to use the car as an asset to be used as collateral for borrowing money from a financial institution to spend when necessary. It must be a car that is debt-free.

Advantages

The ownership remains with the car owner.
It is flexible because you can choose a variety of periods and loan amounts.

Limitations

There may be additional costs related to the car's assessment.

Men and women who are making a car loan contract

5 things you should know and do before taking out a car loan to make it easy to get a loan and pay comfortably

Taking a car loan is something that requires careful planning. In order for the repayment to go smoothly and not be a long-term financial burden, there are things you should do before taking out a car loan, as follows:

Study the information and price of the car model you want to buy.

The first important thing to do before deciding to take out a car loan Compare prices of the car model you want to buy from many showrooms and don't forget to check the promotions offered by car agents to control your budget and find the most suitable price.

Study car loan information.

Another thing you should do is study car loan information to understand the types of car loans, such as hire-purchase car loans and car loans from finance companies. You must compare both the installment rate and the repayment period to choose the type that best suits your needs and financial status.

Calculate car installments and interest.

Since car loan interest rates are fixed, starting from a low interest rate of 1.95% up to 13%, before deciding to take out a car loan, you should clearly inquire about the interest rate and calculate the monthly installment payment to decide whether you can afford the installment payments and not be a burden in the future.

Prepare complete documents.

Documents used to apply for a car loan that financial institutions often require from borrowers generally include:

Personal documents, such as ID card, house registration, pay slip or other income documents.
Car-related documents, such as car sales contract and quotation.
Other documents as specified by the financial institution.

Steps to apply for a car loan.

The last important thing you should know Here are the steps to apply for a car loan, which are mainly found as follows:

After comparing interest rates, promotions and various rules, contact the financial institution you are interested in for more information and to inform them of your intention to apply for a car loan.
Submit the prepared documents to the officer of the desired financial institution.
The institution will take the documents for inspection. Wait to be contacted in case the officer needs additional documents.
Wait for the financial institution's consideration results.

All of this should help you understand more about car loans. However, for those who have already applied for a car loan but cannot continue paying, Autovilla buys cars with finance at a good price. You can choose to buy with us from any of our 3 branches.

Srinakarin branch, Tel. 097-921-9552

Romklao branch, Tel. 095-906-0633
Lam Luk Ka branch, Tel. 092-940-5098

References

Let's get to know the types of car loans and how they differ from other types of loans. Retrieved August 8, 2024 from https://www.silkspan.com/article/loan/article-auto-car-loan-type/
5 things to know before planning to borrow money to buy a car. Retrieved August 8, 2024 from https://www.ttbbank.com/th/fin-tips/detail/newcar-usedcar-finance-car-plan