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.

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.