a paper car loan application with a blue "approved" stamp on a wood desk, with a black pen laying over top

So, you’ve done your research and picked a vehicle from our extensive inventory. You’ve learned how financing works, and you’ve debated the merits of leasing vs financing. Now it’s time to fill out your application and wait. Here at Palladino Lending Solutions we understand that it’s tough to be patient at this point so we’re breaking down what you need to get vehicle financing, as well as how the process works, so you can have a better idea of how long your finance approval will take!

The process to apply for financing

While you can certainly go to your bank to apply for a vehicle loan, it may not be the fastest method given all the other people and businesses banks deal with—not to mention, the impetus for them to get it done quickly is a bit lower. However, most dealerships have departments dedicated solely to vehicle financing, and they have a vested interest in selling you a new vehicle. Better yet, most dealerships now have an online form you can use to get the process started, like this one here

Due to privacy and safety concerns, these forms should always be safe and secure; as such, it’s important to apply through a site that states they are both OMVIC-certified (in Ontario, at least) and begins with ‘https’ (this denotes that its a secure website). Much like the form you’ll find through Palladino Lending Solutions. 

From there, you’ll want to have your necessary information handy, to complete the application as quickly as possible. The information you’ll need, whether you’re applying at a dealership or at a bank, is:

  • Proof of employment, or, a letter stating you will be employed
  • Proof of income
  • Some form of identification 
  • proof of residence

Now you may also be asked for some other information—like proof of insurance or trade-in information related to your current vehicle. From there, you’ll need to provide consent for the lender to pull your credit information. Without this consent, the lender won’t actually be able to look at your credit history or determine your credit score. Not only is this a major necessity toward getting you approved, but without any of these items your application could be delayed or simply declined.


How long it takes to finalize your vehicle loan

Again, the length of time it will take to finalize your loan is dependent on the lender. With the bank it may take a while for your approval, especially if there’s a lot of paperwork being sent back and forth from the dealership to the bank—anywhere from three to seven business days usually.
This is where financing through a dealership can save you time, and get you behind the wheel sooner. By getting pre-approval through the form linked above, you can begin the process while shopping through our inventory all from the comfort of your own home. Or, you can visit a dealership, find the vehicle you want, and then have the finance manager review your credit score and submit any necessary paperwork. If you have prime or super prime credit, you could get approved within minutes! If you have subprime credit, it may take a bit longer, but generally happens within 48 hours.

hand holding a small white alarm clock

What can delay approval?

There’s three things that can slow down the process of getting approved for vehicle financing. They are, in no specific order:

  • Missing documents: by missing important documents (like proof of income, or proof of residence), it can delay your application time significantly
  • Missing vehicle information: this one applies to used vehicles mostly, as some lending institutions will limit the vehicles they finance due to the model year or mileage. This is usually something you won’t need to worry about at a dealership, since they’ll already have all the information.
  • When you apply: while some lending institutions can approve you that day, it’s still a process that takes a bit of time. So if you show up to a dealership five minutes before they close, they might not receive approval until the next day. Likewise, applying on the weekend or on a holiday might push your approval until the next business day.
a contract with a rubber stamp and the words "loan denied" in red

What happens if your loan application is denied?

There’s a number of reasons as to why your loan application could be denied—some of which you can help, and some of which you can’t. As mentioned above, missing documentation is a good way to have your application delayed or even denied completely. Another issue is if you’ve applied for too big of a loan, given your current income. Stable income is a key factor in whether you’ll be approved, or how much you’ll be approved for, so it’s important to work within your means. Finally, poor credit—or having no credit at all—will have a major impact on if you’re approved.

If your finance approval has been denied somewhere else, the team at Palladino Lending Solutions will be more than happy to work with you to get a vehicle loan. From our Return To Prime program aimed at helping you rebuild your credit, to our iDealer Plus software that helps find a vehicle within your means, we’ve got the solution to your credit problems. Give us a call today to learn more about how we can help you get approved with a vehicle loan!