How Long Does Car Loan Approval Take
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How long does car loan approval take?
Buying a new car is exciting. But it can also be overwhelming, with lots of questions you’d like answered – particularly when it comes to car finance.
One of the most common is: ‘how long does car loan approval take?’
How long does car loan approval take?
Car loan approval times aren’t set in stone. Several factors can influence how long car loan approval takes, including your financial circumstances, credit history, the type of car you want to buy and the lender you’re applying with.
In some cases, approval can take as little as one hour. Other times, you might have to wait a few days to get the green light.
But, if you want to get the keys to your new set of wheels as quickly as possible, then follow our step-to-step guide.
How to get car loan approval quickly
Step 1: Gather all your documents before you apply
Different lenders have different requirements but typically you’ll need to provide the following documentation:- Proof of identity
- Proof of income
- Proof of savings and liabilities
- Proof of insurance
- Information about the car
Step 2: Figure out what you can afford to borrow
Working out how much you can afford to borrow is a crucial step in the car loan process. Use our car loan affordability calculator to run your numbers and get an estimate on your repayments.Step 3: Get car loan pre-approval
Pre-approval is when you get your loan conditionally approved by a lender before you start shopping for a car. It lasts for between 30 to 120 days (depending on the lender). While it’s not a necessary step in the car loan process, pre-approval can strengthen your hand when you’re negotiating with a dealer.At National Loans, we can get your car loan pre-approval in as little as one hour.
Step 4: Shop for your new car
Now comes the most exciting part of the process! Once you find the car you want to buy, use your pre-approval to cover the purchase. We’ll then need a few more documents (such as the purchase agreement and final invoice) to process the final approval.
What can slow down car loan approval?
If you’re after a speedy turnaround, watch out for these pitfalls that may slow down the car loan approval process:
- Not providing all the required documents – lenders can only approve your application once you’ve submitted all the right paperwork. Not sure what documents you need? Read our guide.
- Not providing enough information about the car – especially if it’s a used, older or classic model that may need to be valued.
- Having a low credit score – lenders might ask for additional documentation if you have bad credit, which can delay processing times.
Want your next car fast? Get car loan approval online in as little as one hour with National Loans. Click here for a free online quote. If you want help, please fill in this online form or contact National Loans on 1300 358 358.
