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As a salesperson that deals primarily with special finance, here are some tips that may help you get approvals faster and avoid shopping all over the place trying to get "done".

1. Make sure you are prepared to show documentation for things like proof of income, residence stability, credit references, tax return forms.
2. Ask for referrals from friends or co-workers. Find out who they trust and have worked with in the past. Many places offer a bird-dog fee for referrals, so acquaintances will let you know if they have someone that may be able to help.
3. Get auto insurance set up ahead of time, so when you do get approved and pick out the car, a quick phone call is all it takes to get coverage. A dealership will not let you take a vehicle without having proof of insurance.

4. Don't expect to get into a $30,000 vehicle for $300/mo. Be realistic in what you are trying to achieve. Many times the banks will approve a newer vehicle because there is less risk of mechanical breakdown, which means it may be a small truck or sedan, until you have proven you can make payments on time and financially are in a position to move up in a few years to a more expensive vehicle.

5. Be careful how you decide to pay for the vehicle. Dealers with no morals may do something stupid like put someone in a 5-year lease or 60 month balloon note where a large amount of cash is due at the end of the contract. If you have to finance, never go longer than 60 months conventional, or if you lease never go longer than 36 months. Anything longer and you put yourself in a bad position when it's time to trade.

6. The banks look at 3 or 4 major factors when approving a loan.
- Amount of money down makes a difference in the "level" or rate the loan is approved at. More money down may get you a lower interest rate because you are putting more of your own money into the deal.
- Stability in residence and employment is HUGE. If you have had the same job for 3-4 years or lived the same place for over 2 years makes a big impact compared to someone who is unstable with many short jobs or moving around too often.
- Income on the job is important, but it is relative to other expenses. If you make $2000 a month in gross pay, and spend $600 or so in rent or mortgage, not much is left for car payments, insurance, any maintenance or repairs. If an approval is given, it will be for a max payment rather than a loan amount. This can limit the type of vehicles you can look at.

7. Do a short-term lease whenever possible. Here's why:
- No repairs to worry about, the vehicle should be under warranty the entire time you have it. If you finance for 60 months, usually by the start of the 3rd year, maintenance and repairs start to occur - tires, brakes, shocks, alignment, belts, hoses, etc.
- Rebates and incentives are usually stronger on a lease, which may help reduce the amount of down payment.
- The contracts are shorter (2-3 years) and you will build credit faster and many times the manufacturers will give loyalty rebates to renew a lease. If you do 2-year leases, you will have 5 new vehicles in 10 years, compared to 2 in 10 years if you finance for 5 years. Who doesn't like to drive something new?

Hopefully these tips will help you get financing for a vehicle and make your purchase experience more enjoyable. It's no fun if you get ripped off, so watch yourself. If something seems fishy, back away and check it out, don't let them push you around just because you have made some mistakes in the past.

Unlike most conventional loans, there are no payment structures, and no set payment schedules. Your loan is due back in 30 days, interest plus principal (original amount borrowed). Where they catch you is here: if you cannot make the full payment (interest plus principal) your minimum payment due would be the interest that has accrued during the last 30 days. Of course, that payment doesn't even touch your principal (original borrowed amount) balance. So, your loan is good for another 30 days, and again your full balance (principal plus interest) is due. Once again you can choose to pay just the interest due.