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It can take as little as a few seconds and as long as a few days to get approved for a car loan. How long it takes depends on several factors. These include what type of lender it is, your personal finances and the type of car you’re interested in buying.
| Lender | How long is the approval process? |
|---|---|
| Novuna (formerly Hitachi) | Novuna will make an instant decision on your application and the funds could be in your account within 48 hours. |
| Santander | You can expect a decision on your car loan within two working days. |
| Creation | Creation makes an instant decision on your application and the funds can be with you within five working days, following the lender’s receipt of a signed loan agreement. |
| Moneybarn | You’ll receive the results of a soft credit check instantly. If you pass, a member of staff will call to discuss your application on the next working day. You’ll be asked to send documents to confirm your identity and financial situation. Once these are sent, you can expect to receive funds within two to three working days. |
It depends on the lender you choose to apply with, the amount you need to borrow and your creditworthiness. Here’s an idea of how long to expect for each step in the application process:
Car loan pre-approval generally takes the same amount of time as getting approved – sometimes a few seconds, sometimes a few days. Car loan pre-approval is a way to lock in rates with a lender before signing the paperwork so you have time to shop around. This gives you the ability to negotiate down your price and determine exactly how much you need to borrow.
Pre-approval generally involves a hard credit check, which briefly lowers your credit score. And you need to submit documents verifying your income, residency and other aspects of your application.
Banks and credit unions tend to take longer than online lenders, while dealerships are often faster than lenders. If you need to provide more documents than usual to verify your identity or income, it could also slow the process down. Buying from a private seller rather than a dealership can also take longer.
If you want to have your loan in hand quickly, avoid these three pitfalls when submitting your application:
Lenders can only fully approve your loan once all the required documents have been received. If yours is waiting on proof of income or residence, it could hold up your application. To speed up the process, check which documents are required and have them on hand before you apply.
Some lenders can offer same-day approval if you apply by a certain time, usually by the end of the business day. If you apply outside of business hours or on the weekend, your application may fall to the back of the queue.
This is especially important if you’re purchasing a used car, as some lenders have year and mileage limits. If you’ve already been pre-approved and have found a car, have the dealer send the car’s info to your lender immediately so it can finalise your loan.
Getting rejected for a car loan can slow down the whole process. Make sure you’re eligible before you apply for a car loan by checking your lender’s minimum income requirements, credit score and vehicle standards.
A quick turnaround from a lender will get you in the driver’s seat faster. Provided you submit all of your documentation and apply during business hours, there are plenty of lenders that can process your application within just a few days.
Want to compare other options? Browse our guide to car loans to learn more about how they work and what else to look for in a lender.
Want to sell your car and pay off your car loan? Here’s what you need to know before you put your vehicle up for sale.
Maybe you need a bigger car, or you’ve decided to go all in with the Tube and don’t need it anymore. Learn more on how to settle your car loan early with our guide.
If you have bad credit, logbook loans can let you borrow using your car as security – protecting the lender from losing money in the event you default on the loan.
Learn the ins and outs of these promotions, and compare alternatives.
If you’re looking at ways to finance a new or used vehicle, Zuto aims to help you take charge of your options. Apply online and secure a competitive rate.
