Looking for fast funding

Looking for a car loan quickly? Find out what you need to know to get a fast auto loan, secured or unsecured personal loan...

How long does it take to get funding?

The organization of auto financing has different stages, and some stages go faster than others. Getting conditional approval for the amount you can borrow can be quick, but loan documentation can sometimes take weeks to process if you're not ready.

Conditional approval

The first stage of financial approval is conditional approval. You apply for a loan and the lender will approve or reject your application based on the information you provide (and some additional checks).

Conditional approval is like a lender saying, "If your application was correct and everything checked out, then you're approved." If the information you provided can be verified using payroll records, etc., then the statement must still stand.

Now you can go to the store for your car.

Tip: carefully and correctly fill out loan applications. A mistake can lead to a nasty surprise if your conditional approval is revoked!

Final confirmation

Final approval must occur before the loan is settled and you can take possession of the car.

To get to this point, lenders will be looking for proof of the financial information you provided on the app. If it is a secured loan, they will also require details of the collateral, which is usually the car the loan is for.

Please note that it may take several weeks for final approval to be received. If you don't have the evidence required by the lender, you can delay the process! Collecting payroll and credit card statements or waiting for documents to be mailed may take longer than you might expect.

Loan settlement

After you receive final loan approval, settlement usually takes only one or two business days - basically as long as it takes to transfer money to the seller.

You can then arrange to pick up your vehicle!

What can you do to speed up the process?

If you want to get your finances organized quickly, the key is to have it ready. You can take the time to collect the documentation required by the lender to verify your financial situation, especially if you need to request it from a third party such as your employer or your bank.

After you get conditional approval, the lender will tell you what documents they need. Their requirements may vary, however commonly requested items include:

Income verification

If you work for an organization that uses electronic payroll, make sure that printing your pay stub online will satisfy the lender. You may need other proof, such as your employment contract or a letter on company letterhead.

Referees

Have the correct contact information for your employer handy when completing the application. Correcting incorrect data may cause the person processing your application to place it at the end of the stack.

Credit card statements

Some lenders require proof of your credit card limits and the amount you owe. Usually, printouts from your internet banking won't be enough unless they're verified by your credit card issuer, so be prepared to dig up your last three credit card statements.

Insurance

If the car is collateral for a loan, lenders may ask for proof that the car is insured before repaying the loan. Most auto insurers can quickly arrange insurance coverage for this purpose, however you can take the time to find car insurance, especially if your car (or your driving profile!) is likely to be expensive to insure.

Dealers faster?

A fast financing offer can be important for a car dealer closing a sale, and some car dealers advertise same-day approval. If you're thinking about fast dealer financing, be sure to check out:

When can I pick up the car.

Do they just offer same-day conditional approval? This is what some other lenders offer. This is very different from the final approval, and if their finance company goes through the same process as other lenders, that means the process may not be faster.

How good (or bad) the deal is.

Dealers usually use reputable lenders with similar approval processes as the big banks, so getting a loan won't necessarily be faster, but if you use the dealer as your one-stop shop, you'll save time looking for auto loans. But keep in mind if you skip this step, you may not know if you are overpaying the odds on your finances.

Before you visit a dealer, do a simple internet search to find out current auto loan interest rates. Ask the dealer what their interest rate is so you can compare and make an informed decision.

Other Fast Funding Alternatives

Кредитные карты

If you have a credit card in your wallet that has enough funds to cover the cost of your car, this may be a faster alternative to setting up auto financing from scratch. However, there are a number of things you should consider before buying a car with a credit card, including surcharges, the interest rate, what this means for your cash flow, and more.

Read Buying a car with a credit card for more information on the pros and cons of using a credit card to buy a car.

Mortgage renewal

If you have a flexible mortgage and cash to spare, refinancing your mortgage can be a quick way to raise funds.

Read Using a Mortgage to Finance a Car: What to Consider.

Lenders in place

Onsite lenders who do not check financials and credit history tend to lend to high-risk individuals. This means they are likely to write off more bad debts and pass those costs on to other customers through sometimes exceptionally high interest rates and other fees.

If you are considering taking out a loan on the spot because you are worried that you will not be approved for funding, you can learn more in Concerned that you are not eligible for funding.