I think that now we’ve hit upon the issue at hand. In the OP, Bosda mentions that he is 44 years old. Later, we learn that he lives with his father. It is possible that, even at 44 years old, Bosda has never had to deal with the business of modern life like applying for loans, purchasing a house and getting a mortgage, renting an apartment and signing a lease, arranging for utilities to be connected to said house or apartment, etc, etc. Even the credit card may not have come with much experience. In my case, my first credit card application was filled out by my parents and waiting for me on the table one morning. It wasn’t that they were sheltering me – it was that they were tired of my charging my gas on their Texaco card.
So, not bashing Bosda, but let’s see about helping this situation. I’ve read so much here, I am genuinely pulling for this guy – not just to get the car but learn how to handle adult financial transactions. His father, one presumes, will not be around forever to handle these things. From the sound of things, it’s possible that the relationship with Dad may be a bit challenged at times, too.
Bosda, for the time being, let’s set aside the idea of online loan applications. I think that those may be very effective for you, but I am hoping that you can use this experience to learn how to conduct financial transactions.
[ol]
[li]Choose a bank. Would you feel more comfortable going to a bank where you already know people? Would you rather go to a bank where no one knows you? Choose your bank.[/li][li]Once in the bank, choose a loan officer. Who seems open or easy to talk to? Do you know any of them outside the bank? Do you prefer someone known, or a perfect stranger? Do you prefer talking to a man or a woman? Normally, I don’t think that such a thing should matter, but in this case, we’re easing into a new social situation. Some people respond differently to men or women. (Your “Carpenter’s Dream” thread suggests that you may lack experience in effective communication with women. )[/li][li]Go up to your chosen loan officer and say “I would like to apply for a car loan, please.” Seriously, say exactly that. Don’t say something like “I need information about loans.” Be specific, polite, and direct. You are not being rude. Think of the loan officer as a salesperson who sells money. You want to buy money. You need to ask for it, just as you would ask for a hamburger at McDonald’s. You wouldn’t go up to the counter at McDonald’s and expect the kid behind the counter to know what you want. You wouldn’t ask for information about hamburgers. You would say “I want a Big Mac.” You need to take the same approach at the bank.[/li][li]You will need information with you. How much do you earn in your job? Take a paycheck stub, so you can read it off. You will need to know if that amount is gross, or net. If you don’t know, hand the check stub to the loan officerr and let him/her read it. How much do you pay for your home? Include only the amount that you actually pay, not the amount your dad may pay also. If you don’t pay anything at all, say so. Are any of the utilities in your name? Those will also demonstrate your financial responsibility. Take along your latest credit card statement. You’ll need the account number as well as the credit limit and the current balance owed. You will also need personal information like address, employment name and address, and social security number.[/li][li]You will need to know how much money you want. Remember the kid at the McDonald’s. He’s going to ask what size Coke you want. The banker is going to ask what size loan you want. How much does the car you want cost? Remember, you’ll also need to pay sales tax and registration fees. Include those amounts. Ask for a bit more. For example, if the car of your dreams stickers at $10000, sales tax could be another $800 - $1000. Registration fees should add another $50. So, for a $10000 car, ask for $12000. You can always take less. You could take all $12000 and take the excess in cash, if the bank allows that sort of transaction.[/li][li]The loan officer will give you a form to fill out. If you do not understand how to fill it out, ask the banker for help. Remember, it doesn’t matter what he/she thinks of you. He/She wants to sell you some money. They will help you fill out the application. Be polite, be direct, and ask specific directions. I was going to mention reading ability, but then realized that your user name and location are literary references. Reading is probably not an issue. Heck, this is a text-based chat board. Duh.[/li][li]The loan officer can probably pull up your credit report immediately. The bank may use an outside vendor to evaluate your credit. It may simply use your credit score (called a Fair Isaac score). It is unlikely that you will leave the bank without a decision on your loan.[/li][li]Answer any questions the loan officer has about your credit report. Do not hide, lie, or distort anything, no matter how bad the history might be. Banks can work with just about anything, but they cannot work with dishonesty. I’m not suggesting that you are dishonest, I’m just suggesting that you don’t need to be afraid of anything that it true. On the flipside, however, don’t volunteer derogatory information. You don’t have to give them anything they didn’t ask for.[/li][li]You will get a decision. If it is positive, ask the loan officer how you will get the funds to the car dealer. If it is negative, ask why. They MUST tell you, in writing, why you were denied. They probably will not,however, tell you why right there in the bank. The reason will come in a letter in the mail. That is okay. That is required by law.[/li][li]Assuming a positive decision, the loan officer will go over a loan disclosure document. This will show how much money you are borrowing. It will show the interest rate and how much interest you will pay over the life of the loan, assuming all payments are made as scheduled. It will tell you how much the payment is, when the first payment is due, and where to send the first payment. Listen to the loan officer go over the disclosure document and ask any questions you may have. Do not feel bad for asking questions. If you’ve never done this before, you will need to be told about all of this. Ask. It’s that banker’s job to answer all of your questions, no matter how long it takes.[/li][li]Go pick out your new car.[/li][/ol]
Next, we’ll be talking about securing car insurance. If the car is financed, you will need to carry comprehensive insurance. (That will be on the disclosure document.) Do not let the bank buy this insurance for you. You go get it yourself. The bank’s insurance will insure them, not you. It will also be very expensive and you will have to pay it. But that’s a lesson for another day.
Except one small quibble- if it is positive he should compare the rate with the rate the car dealer offered.