Easy Loan Approval for Auto Loans at Royal Auto Dealer

Posted Friday, Oct 20, 2023

It's no secret that getting approved for an auto loan in Los Angeles can be an uphill battle - especially if your credit score isn’t where you want it to be. The good news is that Royal Auto Dealer makes it easy for everyone to get approved for our used auto loans.   

You will have to fill up an online form with relevant details and our experienced salesperson will get in touch with you to inform you about the next steps.   

With that out of the way, there are ways you can tidy up your application by following a few steps.  

Gather All Your Necessary Documents  

First things first, you will need to provide lenders with some basic information. In general, you will need access to the following pieces of information:  

• Your name 
• Address of your primary residence 
• Date of birth 
• Email address 
• Profession 
• Contact number 
• Social Security number 
• Recent addresses and duration of residency 
• Monthly or annual income, along with any additional income sources 
  

You may also be required to provide copies of your tax returns, bank statements, and driver’s licenses.  

Improving Your Credit Score 

While it’s true that improving your credit score can take time, there are a few steps you can take to get the ball rolling. For one, you should get a good idea of what your credit score currently is. The three main credit bureaus provide free credit reports. Ask your bank for more details.   

In general, a range from 670 to 730 or higher is considered to be a good score. Do keep in mind that lenders have their criteria for what is considered to be a decent credit rating.   

However, if your credit score lies in the good range, you should have a decent chance of getting approved. Although the chances of you getting approved at Royal Auto Dealer are extremely high, you can secure more favorable interest rates if your credit score is in the good range.  

Find a Good Source of Income  

Having a good and steady source of income is important to your prospective lenders because it increases the likelihood of you making your monthly payments. Depending on the type of job you have, you may have to provide a certain type of documentation reflecting the nature of your work. So, if you’re an employee, you may have to submit a pay stub, or a W-2 form. And if you’re self-employed, you may need to provide bank statements. 

If you’re confused about this step, talk to our experts at Royal Auto Dealer to find out which documents you will have to provide to get speedy approval.  

Make a Downpayment 

The best way to reduce your monthly interest payments is to make a sizable downpayment. Experts say a minimum of 10% downpayment is a good place to start, but you should try to increase it. This will make it easier for your application to get approved, and you will also secure a lower interest rate that will make your finances more manageable.   

Increasing your down payment makes the risk of lending to you lower, and lenders tend to view such transactions more favorably because you are less likely to default. Moreover, since the down payment lowers the total amount, you need to borrow, it reduces your monthly payment and the total amount you ultimately pay in interest.  

Trade-In Your Vehicle  

You can sell your existing vehicle to a used auto dealer in exchange for credit that can go toward the price of the car you want to buy. This is a highly beneficial transaction because it allows you to get a used car you like without breaking the bank. Additionally, it will save you a ton of money and time.  

A trade-in can simplify the buying process because it can be stressful for many people. But having a place to sell your old vehicle can make things much easier. That way, there is no need for you to list your old car for sale and then set up meetings with strangers to see if they will buy your old car, not to mention having to deal with all the paperwork.  

Provide Identification and Proof of Residence  

In some cases, our application may require you to provide proof of residency and your government-issued ID. This information is used to know where the car is parked in case you default on your payments and the vehicle needs to be repossessed.   

Although this may vary depending on your application, submitting a driver’s license or any other government-issued ID with your address can provide both pieces of information. If you don’t have these documents with you, you may need to provide a bank statement or lease agreement with your address on it to provide your place of residence.  

Always Understand the Terms  

While it’s always exciting to be approved for auto loans, make sure you know what you are agreeing to. Certain lenders may have specific requirements, such as requesting you to obtain certain types of insurance policies or requiring you to pay a penalty for paying the loan early. Make sure to read these contracts and find out if they are indeed beneficial for you.  

Auto Dealers Offer Competitive Rates  

It’s a myth that auto dealers don’t offer affordable interest rates on payments. These days used car dealers offer extremely competitive rates, even if you have bad credit. Dealerships are buying for your business and will work to beat the rates that many banks and credit unions are offering.   

Pro tip: Make sure to check a lender’s online reviews from previous customers and research their rating on various platforms such as Trustpilot and Better Business Bureau before applying. Online reviews will give you an idea of their attitude toward customer service and how they handle negative criticism. 

What Next? 

If you are ready to apply for a used car loan, get your credit score checked to see where you stand. Make sure to test drive the used car before you decide to buy it.   

Get in touch with Royal Auto Dealer in Los Angeles to get approved for your auto loan - quickly and without any stressors. Click here to learn more.