Behind the Scenes in The Finance Manager’s Office

When you are financing used car you will start the process by filling up a credit application, when you are filling the application it is recommended to be as accurate as possible in stating your income, length of employment and the length of time in your resident, also it is useful to provide tow years history for your job and your address, providing this information accurately will help the finance manager when submitting your application to the finance company.

Also if you have limited or bad credit, it will help to have a copy of your proof of income and a copy of a bill to proof your resident, having these document with you will speed the process and will also help the finance manager submit the application to the finance company that he knows that it will be buy your deal according to there lending guidelines.
Car Loans For Bad Credit
When the finance manager receive an application; first they check the credit to be able to decide which finance company got the program that would finance the customer, because each finance company have guidelines to which customer they can extend financing to, so when you provides accurate information you will help the finance manager to narrow the number of submission meaning submit your application to the least number of finance companies, this in return will minimize the number of inquires on your credit and will help you getting the best terms that fits your credit profile.

After the approval is granted, the finance manager will need to make sure that he collects all the stipulations required by the bank to get funded for the deal, this is usually proof of income, proof of resident, reference sheet usually 3 to 10 references are required, and disclosures and authorizations that need to be signed by the buyer, also you will need to provide full coverage insurance and you will need to list the finance company as a lien holder on the policy which means the finance company will be the beneficiary to be paid by the insurance company if you loose your car due to a total loss claim.

after the signing process, the customer will take delivery of the car and the finance manager will package the deal to mail to the finance company for funding, as soon as the finance company receive the documents, they will start the verification process which includes but not limited to, verifying employment, verifying resident, verifying insurance Etc… also most of finance companies will conduct a phone interview with the customer which they call a welcome call to verify the information submitted by the dealer.

After the verification process completed, the finance company will release the funds to the dealer, the process takes from two to seven days on average which means the dealer is not going to get paid unless the verification process have completed

What dose that means to you? that means that until the verification process gets completed, the car is not yours to keep yet and if during the verification, if the finance company found any discrepancy with the application they will not fund the deal and will return it to the dealer after rejection and the dealer will have to repossess the car, and may forfeit all or part of the down payment if the rejection was due to fraudulent information or misrepresentation on the credit application.