What does the auto loan lender check?

Jun 1 2010 When you apply for a car loan, the lender has to check various things before he makes up his mind to lend you the loan you are seeking. That is natural since the lender needs to be sure that he would be getting his money back. So you are required to fill up a form mentioning your address, your income, tax return number and also submit a bank statement.
The lender would verify whether the information provided is genuine. He would then look at the credit history to determine your past record of repayments and based on it would advance the loan at a specific rate of interest. If you do have a bad credit report, then you would still get the loan, but at a much higher rate of interest.
The car loan to be offered is also dependent on the kind of car that you wish to buy. New cars would be subject to a higher rate of interest whereas a used car would attract lower rates of interest. Lenders also get influenced by the down payment amount that you are willing to make – higher the down payment, the lower the rate of interest on the loan offered.

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