Turnaround times for car loans can range from almost instantaneous, to a few working days in most cases to up to a week or two for more complex or specialist applications. So how long should you expect to wait to hear about the decision on your car loan?
Prior to submission however, any credit assistance provider, like a dealership or brokerage firm will need to do a preliminary assessment on your overall application in order to determine that they are not putting you into a difficult position by offering you finance. This could involve collating evidence to support your application, such as payslips to show proof of income.
Once the preliminary assessment has been completed the credit assistance provider should have all the information they need to send your application to the lender for the purposes of an interest rate quote and application should you, the client, be interested in borrowing the funds being offered.
48 Business Hours Turnaround
Approval times once you have applied for finance vary between lenders and between applicants. But on average, most customers are able to have their finance approved within 48 business hours provided the lender has all the documentation they need. Requests for documentation can really delay the approvals process. This is where a good broker can really help, they’ll know what you need before you apply, so you can get everything ready beforehand.
Classic Cars and Custom Cars
If the vehicle is a little different to what the car loan lenders are used to seeing, such as an old classic car, a privately imported vehicle, or a custom made vehicle, the process could take a little longer. In certain cases, financiers may want to physically inspect the vehicle to ensure it’s as described and to get a handle on its true value.
To summarise, while everyone’s application is different, and every lender is different. It’s reasonable to expect a 48 hour turnaround period after you’ve submitted a correctly documented application. If you’re looking for a loan on a rare vehicle, or for a business with a complicated structure, it could take longer to get approved.