Originally Answered: I want to take bank loan to buy used car,how bank will provide the money i want in order to buy used car?
First you go to the dealer and select a vehicle you want to purchase. He will then have you fill out a credit application after giving you the exact figures for the vehicle. He will then submit the applications to the bank(s) he uses for financing. If you come back approved, then they will fill out the paperwork. After the paperwork is complete and signed, you then have your new car. If you have a down payment you plan on using, the you take that with you and give it to the person you sign papers with. After that is done, the dealer submits all your financing paperwork to the bank and they in turn get reimbursed by the bank for your loan. Usually by wiring the funds to his checking account. After that is done, you get your payment book from the bank, registration from the dealer and title with lein holder from the DMV.
Now, you should know that if this is the first vehicle you are buying on credit, it may not be approved. First time car owners are hard to get financed unless you have credit w/a credit card or other loans (to show you have established credit), you have lived at your address for a long period, you have a bank account and worked at your place of employment for a while.
Like I said, if this is your first vehicle, you may have to get a cosigner to be approved as well.
If you get the loan through your bank, then you call your bank loan officer and give them all the details about the vehicle you are purchasing, or you can take them the figures you will need from the dealer/individual. If you are approved, then they will give you a check made out to you and the place/person you are buying the car from. You in turn need to sign the check over.
If you sign up for automatic bill payer with your bank after you are approved, then after you fill out your financing papers at the dealer, they will tell you what day of the month you loan will be deducted from your account and how much. But you have to ask for this option and sign a form with all of your bank account information on it. If you go this way, it usually saves you .25% on your loan interest.