I'm 20 and I'm not sure how the car loan process works. If I get a loan from my own bank.....and let's say I want to have 20K for a car...with a 2K down payment....where does that play into my loan? Do I give that 2K to the dealer and get the rest from my bank? Or do I give the down payment to the bank?
2007-06-13 12:31:46 · 8 answers · asked by happy kat 2 in Business & Finance ➔ Personal Finance
You pay the down payment to the bank. That is deducted from your total loan amount. First you sign the loan paperwork at the bahnk, then the bank will write you a check that you give to the car dealer. That's all the car dealer gets from you. Then you bring the title back to the bank, they will sign it with you and then send it off for processing. Then you will get the title in the mail. It will have your name and the banks name as owners of the car. THen you need to get car insurance and give your bank proof that the car is insured. That's pretty much all the major steps, although I may have gotten the order wrong on some things.
2007-06-13 13:43:20 · answer #1 · answered by Anonymous · 0⤊ 1⤋
1
2016-09-26 10:07:20 · answer #2 · answered by ? 3 · 0⤊ 0⤋
You need to still ask for the $20k from the bank. Depending on where you go, that bank may ask for your downpayment amount. Once the bank approves you, they will give you the check to bring to the dealership. If it;s a new car, you'll get a much better rate through the dealer. If it's a used car, you can probably still do better by going to the dealership. Dealer financing at the car dealerships provides much lower rates than a direct loan from a bank. Even a loan that you get from the dealership through Chase Bank, could have a lower rate than what Chase will provide at a local branch. Wholesale financing is much different than the normal consumer lending that branches offer.
2007-06-13 12:51:16 · answer #3 · answered by ruca80 3 · 0⤊ 0⤋
The bank loans you X amount secured by a lien on the car. Any additional amount is between you and the dealer. The bank is NOT involved with the down payment in any way.
2007-06-13 13:01:40 · answer #4 · answered by STEVEN F 7 · 0⤊ 0⤋
You owe the balance of the loan to the lender same as with a house. That's what the lender is for. If you don't make the payments then the bank will reprocess the car. The 2k you put down did go to the car company. The other 18k the lender gave to the car company for you, and you pay the lender back.
2007-06-13 12:57:21 · answer #5 · answered by ontopofoldsmokie 6 · 0⤊ 0⤋
The 2K goes to the dealer, the rest from your bank. Always best to make sure first that you qualify for a loan from your bank. Go to your bank and talk with a manager and tell them what you want to do. They'll run your credit and tell you how much you will qualify for and what your rate will be.
2007-06-13 12:57:23 · answer #6 · answered by Anonymous · 0⤊ 0⤋
you would supply the all the way down to whomever is arranging the financing. in case you manage a loan along with your economic organization previous to going procuring, (wise pass) you're a lot less in all probability to spend better than you could arise with the money for. which could no longer to assert that you'll walk right into a dealership and demand they promote you a $35,000.00 suv for 20k the point is that your funds is what's on the examine, no longer what the broking service can "bump" you to. After reductions and rebates you ought to be able to get a 20k vehicle out the door for between 19 and 20 there is not any longer a heck of a lot of earnings in new automobiles at that funds so do not anticipate thousands of earnings reductions. good success, and please purchase American, Toyota has in basic terms as many provider bays as all and sundry, do not allow there fancy classified ads baby ya.
2016-10-18 21:26:32 · answer #7 · answered by ? 4 · 0⤊ 0⤋
Most likely your bank since they are doing the financing. Good luck and congratulations.
2007-06-13 12:40:04 · answer #8 · answered by useurbrain 3 · 0⤊ 2⤋