Getting approved for car financing is a great desire for many people these days. This is because most people, unfortunately, cannot afford to buy a car outright. 

But whenever we talk about financing, a big question always comes up:

How do I get approved for vehicle financing?

This is a question and a fear that many people have when they want their financing approved, but they don't know if the deal will go through or not. 

If you've ever had a loan application denied, or if you've never tried for a loan and don't want to be rejected, our message is simple: Don't worry! 

Today we're going to show you the main steps to get approved for vehicle financing and drive away in your new car. 

Are you looking to get out and about using a car, whether a new or used one, but will need to deal with financing?

So, today's reading is a must!

Let's check out everything and more about car loan approval!

What we're about to say borders on madness, but it's absolutely true!

There are a number of signs that can help predict whether your vehicle financing will be approved. 

And we're not talking about a miraculous sign or something beyond our control. 

We are referring to the existence of certain situations that can facilitate your approval and guarantee your vehicle will be in the garage. 

For a loan to be approved, the lending institution needs to be sure that you will be able to make the payments.

Therefore, if you don't have a bad credit history, can prove your income (whether as a self-employed individual or under a CLT employment contract), and are between 18 and 70 years old, your chances of approval are high. 

Having a clean record is a guarantee of no outstanding debts or payments. 

Having a verifiable income assures the institution that you have the financial means to pay the loan installments. 

Finally, being between 18 and 70 years old is actually a formality, but unfortunately, financial institutions take it into account. 

If you meet all these criteria, your chances of being approved for vehicle financing are very high. 

Most people believe that to be approved for vehicle financing, all you need is a clean credit history. 

While a clean record is indeed a positive factor, it's not as decisive as many people think. 

Here, we've outlined three reasons why your loan application might not have been approved, even with a clean credit history.

Even with verifiable income, many people are unable to get approved for vehicle financing. 

For a bank or financial institution to grant financing, the installment payment must not exceed 30% of your earnings. 

Most rejections happen because of this detail. 

Therefore, when negotiating a vehicle through financing, look for conditions that fit within your income capacity and do not exceed that percentage. 

Having a good relationship history with your bank is an excellent way to open doors for the future. 

Many people don't know this, but banks and financial institutions have interconnected systems.

So, if your bills are up to date or if you have taken out previous loans or financing and paid everything on time, the chances of being approved for vehicle financing are high. 

Now, if you have a history of debt, late payments, and outstanding balances, even if you meet the approval requirements, you will have difficulty getting your new car loan approved. 

We've just shown you that the installment amount influences the approval of your financing.

But what few people know is that the brand and the total value of the model also matter.

The chances of your financing being approved to buy a popular car are much higher. 

Cars from brands like Volkswagen, Fiat, Ford, and Chevrolet are the easiest to get financing approved for. 

That's because these are companies that have affordable vehicles and are already well-established here!

With regard to the popular car, this is a matter of pure logic. 

The chances of a consumer being able to afford financing for a cheaper car are higher. 

On the other hand, if you're dreaming of financing an imported car or SUV, be aware that the evaluation criteria will be more thorough and the chances of financing approval are lower. 

At this point you must be wondering:

–So how do I get my car loan approved?

There are some tips that really make a difference when it comes to getting your vehicle financing approved. 

We've outlined the top 5 ways you can get approved for this type of deal and take your new car home this week! 

Ready to go?

Many people don't know what a credit score is! 

A credit score is actually a very useful tool for the market to classify people who honor their financial commitments. 

In other words, they pay their installments on time, settle their bills before the due date, and keep their bank account in the black without using overdraft facilities. 

Other factors considered in determining the score include credit card overdraft usage, prolonged use of overdraft facilities, excessive debt, and simultaneous installment payments.

Having a high credit score also influences the price of credit in the market. 

Good payers represent a lower risk for those offering vehicle financing. 

Therefore, these clients have easier approval and lower interest rates. 

There are three credit score ranges. They are:

0 to 300 points – this is the lowest score range. People in this range represent a risk of default and are unlikely to get approval for vehicle financing;

Between 300 and 700 points – this is the average score, indicating a moderate risk of default, but in some cases financing may be approved. 

Between 700 and 1000 points – this is the highest score. Those with scores between 700 and 1000 points have a good payment record and minimal chances of default. Vehicle financing is rarely refused for people within this score range. 

If you don't know your credit score, simply go to the Serasa Experian website, register, and check it for free. 

Maintaining a clean credit history is another factor that helps in getting approved for vehicle financing. 

Having a clean name means not being indebted to anyone. 

Therefore, to have a clean record, you need to pay your bills on time and not be late on water, electricity, internet, rent, and other payments registered under your CPF (Brazilian tax identification number). 

However, if at any point in a tight spot it has been necessary to delay a payment or even fail to pay it altogether, it is natural for the aggrieved company to seek its rights.

Therefore, one way to put pressure on debtors is to inform Serasa about the outstanding debt. 

Therefore, whenever this type of situation occurs, the advice is to contact the creditor and pay what is owed, or at least a portion of it. 

Because this keeps your name clean and facilitates future business dealings. 

So here's one of the main tips on how to get approved for vehicle financing: put down a good amount for the down payment. 

Because when the buyer makes a low initial payment, it gives the impression that they didn't plan properly before buying the car. 

Or even worse: that they are unable to commit to the high investment required to finance a vehicle. 

Generally, the market operates with an average of 10% of the total car value as the minimum amount to be offered as a down payment. 

Therefore, the remaining 90% can generally be financed. 

But if there's a possibility of making a larger down payment, between 20% and 30% of the vehicle's value, the chances of approval increase significantly!

Furthermore, there is also the advantage that the larger the down payment, the lower the monthly payments will be. 

Because, in the rush to finish paying off the loan quickly to avoid compromising their income with interest and fees, it's common for many people to request fewer installments with high values. 

This can be a real problem since the installments need to fit within your budget without compromising more than 30% of your monthly income. 

Therefore, our experts' advice is simple: Choose installments that truly fit comfortably within your budget. 

As we showed earlier, more popular brands that have been in our market longer have easier access to financing. 

This happens because they are established and traditional companies here. 

This naturally makes it easier to find replacement parts, which makes maintaining a financed vehicle more affordable. 

If there are any problems with the car, it will be easier to resolve them, which reduces the chances of defaulting on payments. 

Imagine the following situation:

The bank financed an imported car, the owner crashed the financed vehicle, and replacement parts need to be brought in from abroad. 

The client's income will be further compromised by this incident, which may cause them to fall behind on loan payments. 

Therefore, when financing a vehicle, opt for a model from a brand that has been in the automotive market for some time. 

Now that you know all the steps to get your vehicle financing approved, it's time to put all your learning into practice.

By following the tips we've just shown you, your financing will definitely be approved!

And since we're talking about financing, did you know that there are different types of financing?

If you're looking to buy a car, we invite you to explore three different financing options that will make purchasing your vehicle easier. 

Check it out! Just click the button below!