A great resource for new and used car buyers is Wells Fargo Auto Finance. Car shoppers can apply for a loan online, in person or at the dealership of their choice. Make sure to check out 2009 Car Buying Statistics before you shop for vehicles!
Applying For a Car Loan with Wells Fargo Auto Finance
Wells Fargo offers three ways to finance a new or used vehicle, but before you buy, read Car Buying Strategies to get the best deal.
At the Dealership
Most dealerships utilize Wells Fargo to help their customers finance right on the spot. The process entails the customer filling out a credit application and the dealership's finance department submitting it to Wells Fargo for approval. The dealership's finance department will enter all the information on the vehicle you want to buy including a buyer's order. A buyer's order will list not only the sales price of the vehicle you want to buy, but dealer documentary fees, registration and title fees, extended warranty price as well as any accessories you want to add to your vehicle.
Once Wells Fargo approves you, the dealership will be notified via fax or email. It is important to note that a dealership is allowed to bump up the buy rate. For instance if Wells Fargo approves a loan for $20,000 with an interest buy rate of seven percent, the dealer will often mark-up this rate by as much as two points and call it the sell rate. If you finance with Wells Fargo through one of the dealerships they do business with, and your sell rate is higher than the buy rate, Wells Fargo will pay the dealership the difference in those two rates. This is called dealer reserve. It is best to try and finance through Wells Fargo Auto Finance on your own so your interest rate can't be bumped higher.
In Person
Before you visit a Wells Fargo bank, find the new or used car you want to buy and obtain a buyer's order from the salesperson. Next, find a Wells Fargo bank in your area and ask to speak to an auto loan specialist. They will run your credit report the same as a dealership would and tell you if they can approve your auto loan. If you go to a Wells Fargo bank in person, the interest buy rate and the interest sell rate will be the same. You may have to pay loan origination fees or other administrative fees but they should not exceed one percent of the loan or one hundred dollars.
Online Financing
By visiting Wells Fargo Auto Finance online, you can complete their website application and be approved in as little as fifteen minutes. When you apply online you aren't required to have an exact vehicle in mind. All you will need is the approximate amount you would like to borrow. If you are approved, you will receive a loan package in the mail within three business days.
Once you receive your loan package, you can visit any dealership and choose the vehicle you wish to purchase. The dealership's finance department will help you complete your loan package and fax your loan documents to Wells Fargo to complete your loan process. The dealership receives no extra funding for this process other than the sale of the vehicle. Dealerships may charge you a documentary or administration fee for faxing your loan package to Wells Fargo.
Tips for Financing With Wells Fargo
- Before you complete any credit application, online, at the dealership or at the bank, visit the Federal Trade Commission and get a free annual credit report so you know where your credit score lies. Wells Fargo has a credit scoring line from poor to fair to good to excellent. To obtain a loan from Wells Fargo, your credit score should be in the 620-719 range for fair or good credit. You must score at 720 or higher for excellent credit. Chances are if you fall below a 620 score, you will be turned down for an auto loan with Wells Fargo.
- Don't have the bank, the dealership and the online Wells Fargo source run your credit report three times. Choose one source. Every time your credit report is run, it drops your credit score by one point. If your score is at 620 and by running your report three times it is lowered to 617; you are now in the poor credit range. If you do fall in the poor credit score range, ask Wells Fargo about refinancing your current auto loan regardless of credit.
- If you choose to finance at the dealership with Wells Fargo, when you are approved, ask to see what is called the loan call sheet. The loan call sheet will clearly list what interest rate is being offered to you. If you see six percent, tell your salesperson you want the loan at six percent. If they won't comply, move on.
- Interest rates with Wells Fargo Auto Finance vary. If your credit score is excellent, you may qualify for a very low interest rate such as four or five percent. If your credit score is good or fair, your interest rate can range from eight to ten percent. A poor credit score will usually require you to find a sub-prime lender. Interest rates will always very depending upon the prime rate so keep that in mind.
- Check auto manufacturer's low interest rate special at Edmunds before you car shop. Often an auto manufacturer will be offering a zero percent or low interest rate such as 1.9%, which will be the best interest rate. Edmunds updates their website weekly.
When you're ready to car shop, a smart and safe choice is Wells Fargo Auto Finance. They are a company that has been in business for a long time and are a dependable source for your auto financing needs.
