A car loan application letter is one that is drafted to seek financial assistance from a dealer or bank to aid with the acquisition of the car. In the course of drafting this letter, some ambiguities are bound to arise. If and when they do, the intent and spirit of the letter may be compromised. That is why a sample to that effect is by all means strongly recommended.
Car Loan Application Letter Format
Your city, state zip code
Your phone number
City, state zip code
Respected mr. /ms. Last name:
Re: request for funding for my car
I am an account holder with your bank. My account number is _____________ (account number). I intend to acquire a motor vehicle worth _____________ (disclose the price of the vehicle), which i honestly am not able to raise.
For this reason, i seek your assistance of ________________ (specify the amount you need) in the form of a loan. I plan to repay the loan within _________________ (showcase the duration of repayment).
Kindly refer to my account details to be able to know the cash flow of my account over the last _________ (duration of membership to the financial institution).
I would be very enthusiastic to receive a call from you to offer you further details with regards to the specific details of the car. For any urgent inquiries, reach me on xxx-xxx-xxxx.
As always, i hope for positive feedback to my humble request.
Thank you so much for your time.
Signature (hard copy letter)
Car loan application letter template
This is a bare framework that seeks to guide you through the process of drafting a car loan application letter. It provides you the raw structure against which you fill in the necessary details. The use of the template definitely cheapens the work not to mention aid you in attaining the best outcomes.
Car loan application letter sample
A car loan application letter sample takes you further than a template. It is actually a letter that is drafted to that effect. The letter incorporates all the vital elements of a typical letter of this kind. It provides a basis against which you may draft future letters of these kinds.
What Questions to Ask When Getting a Car Loan
Q 1. Can my wife get a car loan using my income?
In a nutshell, yes! However, the matter is highly subjective. That is because each jurisdiction spells out the terms and conditions that govern this possibility. Some even outlaw it altogether. It is subsequently incumbent upon you to find out whether yours allows it or not.
Q 2. Can you borrow a loan against a car?
Yes, it is actually possible to do so! The loans attainable with regards to this are however severely limited in value and scope. Many lenders will generally require that you own the car fully and prove that the car is in perfect condition before being eligible for the same.
Q 3. Is it better to be pre-approved for a car loan?
Yes, it is! Getting pre-approved is a sure way of obtaining the lowest rates of interest on your car. That is because the potential lenders will often view you are risk-free and in good light at the same time. To cut down on your costs of acquisition, you definitely want to leverage this leeway.
Q 4. Can i apply for a car loan online?
Why not? Almost all lenders these days have migrated to the online platform. It is impossible hence to be able to get alone these days save for leveraging this platform. Moreover, it also saves you a great deal of time as you do not have to cover any distances to get to their offices or premises.
Q 5. Does pre-approval guarantee a car loan?
Not necessarily! It is still in the prerogative of the lender to determine whether you are indeed eligible for a car loan or not. Moreover, a lender may also want to consider other non-monetary factors before making a final decision. Examples of these are your health, level of education, citizenship status, and profession.
Q 6. Do multiple car loan applications hurt your credit?
Most certainly, they can! Many car loans definitely require that you service many debts and correspondingly higher rates of interest. This has the potential to overburden you and possibly hurt your own credit ratings. You should hence exercise some moderation in the course of going about the issue.
Q 7. Is it better to finance through a dealer or bank?
A bank is, by all means, the better option. Banks have stronger financial muscles and are hence better placed at offering the juiciest terms and conditions. In the event of financial turbulence, you are more likely to recoup your money from a bank than from a dealer.
Q 8. What credit score is needed to buy a car?
550 is the magic number. Many lenders will normally be reluctant to give loans to persons whose scores are lower than this. They may still lend but would normally impose more stringent requirements that may make such loans untenable. Be sure to check the rules and regulations that exist in your area.
Q 9. How much should i put as a down-payment on a car?
You are strongly recommended to put 20% of the value of the car as the down-payment. Also of note is the fact that different financiers have their own requirements. You should take great care that you know about them and conform to them as nearly as possible.
Q 10. How long is a car loan?
Many car loans will typically last 72 months. Quite a few though may also manage the 84-month milestone. Generally speaking, the shorter the loan duration, the better it is for the end-user. Such loans normally come at lower interests not to mention being subjected to less stringent repayment terms and conditions.