Auto Loan and Car Financing

Auto Loan
Frequently Asked Questions

Frequently Asked Questions about Credit and Auto Loans

At Atlantic Hyundai, we know that financing is one of the most important parts of buying a new car. It can also be confusing, especially if it's your first time going through the process. To help, our team has collected the answers to the questions that customers ask us frequently.

What Happens When You Prequalify for an Auto Loan?

When you prequalify for an auto loan, it means that the lender has taken a look at your basic credit history and determined that your odds of getting the loan are high. This process usually requires you to provide details about your finances - at a minimum, you can expect to disclose your income. The details vary but might also include rent or mortgage costs and the amount you have in savings. A prequalification is not a loan or a financing offer; it simply gives you an idea of the odds of approval and the amount you're likely to get. In some cases, it also helps you understand the terms you can receive with a loan.

Why Won't Prequalification Change my Credit Score?

The prequalification process may include a soft credit inquiry. This enables you or a lender to check your credit score. However, since you're not using the check to apply for a loan yet, it doesn't affect your credit score. Credit reporting agencies do not consider soft inquiries when they calculate your score.

What Documents Will I Need to Bring to Get a Loan?

The exact paperwork may vary slightly, but in most cases, you'll need to provide a photo ID and a pay stub, bank statements, or tax records to prove your income. Expect to bring proof that you have car insurance and proof of residence - a bill, vehicle registration, or a driver's license are usually acceptable.

What is a Cosigner for an Auto Loan and Why Would I Require One?

A co-applicant is a person who is added to the loan application as another borrower. This person serves as a guarantee for the lender - if you can't meet the payments, they become responsible for the cost. You might need a co-applicant if you don't meet the loan requirements on your own; it can help increase your chances of getting the funds.

Is it Possible to Get Approved Auto Loan if I Have Bad Credit?

It is more challenging to approve an auto loan with bad credit, but not impossible. Many lenders are willing to work with you. In return, you might need to make a bigger down payment or accept a higher interest rate.

Is it Possible for Me to Get Approved for a Car Loan if I've filed for Bankruptcy?

It is possible to secure an auto loan after bankruptcy; many customers use financing sources who specialize in "second chance" loans. The process is similar to getting a loan with bad credit, so you may need to save for a down payment or pay more in interest.

Can I Get a Car with No Down Payment?

Some lenders offer car loans with zero down payments. Usually, these offers go to people with good credit and solid income. This option usually means that each car payment will be higher than it would with a down payment.

Can I Get an Auto Loan as a College Student if I Don't Have a Job?

Your odds of approval depend on your credit history. If you're a college student with no credit or poor credit and no job, you may need to get a cosigner with a steady income and strong credit.

Does it Affect Your Credit When You Apply for an Auto Loan?

When you apply for a car loan, the lender or dealership does a hard credit inquiry. This can reduce your score by a few points; however, the effect is reversed by timely payments.

Visit Atlantic Hyundai Today!

Do you have any other questions about credit or auto loans in West Islip? We welcome you to reach out to our staff - we're always happy to provide information or direct you to resources that can make the car-buying process easy and stress-free. Whether you're in Bay Shore or Brentwood, NY, contact us today. Babylon customers can also check out our financing offers online as well.

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  1. Atlantic Hyundai

    193 Sunrise Highway North Service Road
    West Islip, NY 11795

    • Sales: (844) 407-8341
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