What Happens During Your Finance Application
Posted in Buyer Advice
What Happens During Your Finance Application
When you apply for a car loan, there is a lot that has to be done on both sides. Paperwork, checks, calculations you name it. Many ask why it's taking so long and what actually happens during their finance application - let us explain!
THE PROCESS
Let's start by explain the process of any finance application, whether it be for a loan, car or other type of loan.
Every application generally goes in three stages:
Initial Assessment: This is where we confirm that you have provided us with all the necessary documents, and that we are happy to consider you for financing.
Conditional Approval: Approval: This is issued once the financier has had a look at everything you've provided, and they're happy with the numbers and calculations. But that doesn't mean you've got your finance yet. That means that the financier has ascertained that you are able to afford the repayments on the loan you are looking to get.
Final Assessment: The financier will then ensure the purchase price of the car is in line with the market value and that you are not overpaying for the car. They will then do a final assessment. If everything checks out and adds up, they'll issue you an approval for the finance and we get loan documents printed and sort the comprehensive insurance for you.
While most financiers have the same general process, this doesn’t mean that the time it takes for each step is the same. Each stage can take a variable amount of time to be completed. Worse case - each one of those steps could take days. Or, if it all goes smoothly, it won't take no longer than a few hours or half a day for each, and your approval is through within a couple of days.
WHY DOES IT TAKE SO LONG?
The difference between your finance being approved quickly or the process taking longer, usually has to do with not providing enough information, or simply the lender being busy. That's why it's important to ask what the turnaround is, so you'll have an idea of a realistic timeframe as to when to expect the approval.
We will give you a list of exactly what we need for your application, and it's important you provide everything we ask to make the process go smooth and fast. Delay in supplying one document could slow the whole process down.
GETTING YOUR FINANCE SORTED
The key to a quicker finance approval is ensuring you are fully prepared, and are able to follow up on any additional documents ASAP. Make sure you've got your paperwork sorted, keep a check on what the time frames are, and be patient.
