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how long does it take to get approved for a car loan from a dealership?

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Why does it take so long at a dealership to buy a new car?
Once the price is agreed on, the loan or lease is approved and they have your down payment, why do new car dealerships drag the car buying process out by making you talk to sales managers, account managers, loan managers, etc. etc.  and have you sit and wait for their people to sign paperwork.  Used car dealers don't seem to do this.  Why is buying or leasing a new car a multi-hour inconvenience for the customer?

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asked May 26, 2017 in Business and Finance by Dkingz

4 Answers

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I feel your pain... but unfortunately I think most people like the fact that it takes so long, and that's part of why dealerships continue to do so.
Buying a brand new car is a big deal and has huge significance economically and, more importantly, culturally.  I don't think most new car buyers would be happy if it was as simple as swiping their credit card at the grocery store (though I would be) because they might have buyers remorse immediately after... things wouldn't add up... this is such a huge deal, why didn't it feel like it?
By taking all day, and exhausting you, I think they lessen the chances that you will change your mind or be unhappy with the purchase... because it's going to feel like you just ran a marathon... and no one will walk away feeling like their big day wasn't just that.
Also they love having you in the dealership all day, it's the perfect way to maximize their chances of selling you add-ons with your purchase and have you look at your next dream car.
answered May 26, 2017 by Ramsey Mesyef
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how long does a dealership have to process and get a loan approved before it goes void...and what happens after the loan goes void and i still have the truck?
it has been 30 days from when i signed the papers and still nothing...i want out of the deal...im tired of dealing with them...how do i get out of the loan?
answered May 26, 2017 by Richard
So you have had the car for 30 days now and they still do not have financing in place yet? If they are able to secure the same financing terms that you originally signed your deal for, you may have a hard time getting out of the deal. However, if they can not secure the same terms of the deal you should have no problem. I would highly recommend that you review your paperwork very closely to see if there is any hidden language contained within that the terms of your agreement.
If you really want out of the deal and they have yet to secure financing at this point, you need to start demanding that they let you out of the deal as they have had plenty of time to secure financing. You may need to go all the way up to the head of the dealership, and maybe even to the owner of the dealership or the regional manager of the dealership (if the company is very large and has multiple branches). Explain that you have purchased a car, it has been 30 days, no financing has been secured yet and you want out of the deal now because of a breach of contract. You signed an agreement to finance your vehicle with a specific lender and they have not arranged for a loan with that specific lender yet after 30 days. If they continue to refuse to let you out of the contract, you may want to try and get an attorney. Let them know this as well, if they are adamant about not letting you out of the deal.
There are a possible couple of issues though. First, if you traded in a car, there is a good chance that they no longer have your car to get back to you. Second, if there is any language in your purchase agreement that states anything along the lines of the auto company being able to find similar financing from a new lender. Finally, you signed a contract to buy a car and as long as the terms of the financing are the same as what you originally signed you will probably have a difficult time getting out the loan. Best of luck. Please let me know if I can be of any further assistance with this matter. Thank you for using Just Answer and please remember to leave feedback after you have clicked the Green Accept button. Have a great week.
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In many cases, it only has to do with the inefficiency which that dealership is run. Typically, all these people are talking to you so that you don't get upset for the wait so they're just trying to keep you busy. They may also be waiting for a response from banks about the loan (keep in mind that many sales managers base the interest rate on their knowledge of what the banks will "probably" give you and not until a deal is accepted do they actually input all of your information and send it to the bank for an official approval. Whether they do this will depend on your credit.) They also have to get the vehicle ready for you to take delivery. This entails a thorough washing and detailing as well as putting gas in the vehicle. The finance manager has to get all the paperwork ready for you as well. There are many factors that could be a reason why you have to wait BUT many dealerships nowadays have made the process more efficient for customers as they know that many people feel like you so they are making their processes more efficient so that your experience is more pleasant.
answered May 26, 2017 by tiescore
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The time it takes to finalize all the paperwork varies from dealer to dealer.  A few have optimized their sales process and can get you out in less than 30 minutes.  On the flip-side, I've known some buyers who spent more than 7 hours at a dealership.   
One major problem is that most dealers only have one finance manager - and every car deal has to go through them, so sometimes things back up, especially on busy days such as Saturdays.  
As Scott pointed out, your best option is to have the dealer deliver the vehicle to your home or office.  They will already have all the paperwork ready and all you have to do is sign.  Most dealers will do this free of charge if you live within 25 miles or so.
answered May 26, 2017 by Ashish Kushwaha

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