What is auto finance?
Auto finance simply refers to the range of financial products available that allow people to acquire a car with any arrangement other than a full-cash single lump payment (outright payment).
“The provision of car finance, usually by a bank or some kind of financial institution, allows consumers to pay the dealer or manufacturer, even though they do not have the money, i.e. car finance allows the consumer to buy a car by borrowing the money so that the seller can be paid.
Auto financing is widely used both by members of the public and businesses. A wide range of finance products are available. Business contract hire, which can provide tax and cash flow benefits, is very popular among companies”.
How can you pay your American auto finance?
You can your American auto finance on the secured platform doxo. Doxo is a secure all-in-one service to organize all your provider accounts in a single app, enabling reliable payment delivery to thousands of billers. doxo is not an affiliate of American Auto Financing. Logos and other trademarks within this site are the property of their respective owners. No endorsement has been given nor is implied.
You can as well pay your American auto loans on the Bank of America secure portal.
Things you need to prove that you qualify for an auto loan in America
According to Yahoo Finance,
1. Proof of Income
Most lenders require proof that a borrower is actively earning income to ensure he can make his car payment. The easiest way to satisfy this requirement is to bring a pay stub that’s less than a month old and shows your year-to-date income.
If you’re self-employed, you’ll need tax returns and bank statements. Generally, lenders require two years of tax history but might ask for as many as five; you’ll also need bank statements from the past three months.
2. Proof of Residence
A lender must verify your address on the car loan application. You have several options to prove that you live there: You can bring a utility bill or any other business correspondence that you receive at your current address. You’ll also need to provide a valid driver’s license if you plan to drive away with a car.
3. Proof of Insurance
State laws require that all cars on the road be insured, so the lender has to know that you have adequate coverage before he can give you a car loan. If you have already purchased insurance, bring documentation.
If you don’t have coverage, you’ll probably be able to call an insurance company from the dealership and secure it. Financing through the dealer, however, won’t enable you to shop around for the best policy rates from other lenders. If you have a good relationship with your bank, for example, you might be able to get a better car loan rate with a preapproved car loan than you would through the dealership.
To get a car loan you must provide proof of your identity. You will need a photo ID with your signature on it, a current utility bill in your name that has the same address as your ID, and two months of current bank statements. Other acceptable forms of ID include a passport, a government-issued card like a Medicare ID, stock certificates, and titles to a home or other vehicles.
5. Credit and Financial History
Lenders are concerned with your current and past finances, including your current debt-to-income ratio — or the percentage of your monthly gross income that goes toward paying debts — as well as your credit history and credit score.
You won’t need to bring anything — the lender can access this information with your basic personal information and your consent. Just be aware that the lender will analyze your current and past debt history.
6. Vehicle Information
If you’re applying for a used car loan, you’ll need a lot of information about the vehicle you’re buying. The lender will want to document the vehicle’s purchase price, identification number, year, make, model, mileage, original title, and any liens that might be on it.
The car dealer is usually bound by the “used car rule” to provide you with a comprehensive buyer’s guide for the car you’re buying. That guide contains the information you’ll need to apply for a car loan, plus facts about your rights and responsibilities. You should thoroughly review that guide and understand everything before you sign on the dotted line.
7. Trade-in Documentation
If you’re trading in a car you’ll need its title and registration papers — and any other documents that might help the lender determine what the trade-in vehicle is worth. Because the vehicle’s worth will impact how much financing you receive, make sure you bring these things with you to streamline your loan.