This site was designed for the latest version of Chrome, Firefox, Safari, and Internet Explorer (version 10+). Some features may not work correctly in your browser. OK

Automotive Financing FAQs | Elizabethtown, KY

Once you’ve finally decided on the Honda of your dreams, it’s time to start thinking about the best way to finance your new purchase. Figuring out your loan budget and finding the ideal financing for your needs can be intimidating if you don’t have someone to guide you through the process. That’s why Hardin County Honda has put together a list of frequently asked questions to make sure that your experience is simple, easy, and positive.

What will I need for an automotive loan?

Qualifying for a car loan will require a significant amount of paperwork. When you go to get your loan, you’ll want to be ready with multiple forms of personal identification and financial/residential stability. Make sure to bring documents like your driver’s license, paychecks, proof of address, and information about the car you intend to purchase. Finally, you must undergo a credit check so that the lender can analyze your credit score.

What does APR mean?

APR is a common phrase used at dealerships, but it can easily go over your head if you don’t know what it means. APR stands for annual percentage rate, which is the yearly rate of interest you will pay on your loan. Auto loan APRs are usually fixed-rate, meaning the number stays the same throughout your loan term.

What do lenders look at?

When you apply for a loan, the lender will look at your entire financial situation. This includes your credit report, credit score, age, income, marital status, and employment. That’s because they need to determine your debt-to-income ratio in order to calculate the appropriate interest rate and loan timeline for you.

How much can I afford?

Your loan budget will depend on multiple factors. You should consider your monthly or yearly expenses, along with the amount you’re willing to spend on your vehicle each month. The economist-recommended rate is 20%. You should consider your own spending habits and remember to plan ahead for monthly expenses like gas, rent, insurance, and groceries.

What documents do I need to bring?

If you’re choosing to get an automotive loan, having the right documents with you can help your loan be approved quickly. Here are the documents that you will need to bring with you to finance the purchase of a new car.


Proof of Identity & Residency

To receive a loan, you need to prove that you are who you say you are. Identification is required by federal law. Depending on your lender, a variety of identification can be used if it’s government-issued. Examples of this include a driver’s license of passport.

Lenders must also gather information on your residence. For some dealers, a current driver’s license is enough to show your current residence. You can also use any piece of personalized mail that you have received within the last month, including a utility bill, credit card statement, or bank statement.


Proof of Income

Lenders will ask you to provide copies of your pay stubs from the last month, showing the total of what you’ve been paid this year so far to determine your ability to repay an auto loan. You can also provide bank statements.

Credit History

Some lenders will examine your credit score, FICO score, and FICO auto score to determine your suitability for a loan. This means they will need your name, address, date of birth, and Social Security number to discover your previous credit and banking history.

Your Trade-In Vehicle’s Title & Registration

If you’re trading in a vehicle, you need to bring in that vehicle’s title and registration to help move the loan along.

Proof of Car Insurance

It’s law that you have car insurance that complies with your state law. Once you’ve signed a bill of sale for your new car, the lender will ask you to provide proof of this insurance before you can drive the car off the dealership lot.

Method of Payment

Be ready to make your down payment on your car with the payment method of choice. This can include:
Personal check
Cashier’s check
Credit card
Debit card
Preapproved loan
Personal loan

By coming to the dealership prepared, the process of financing a new or used car can go much more smoothly.

If you have any questions or just want to talk to someone experienced in the field, stop by Hardin County Honda or give us a call at (270) 600-2483 to chat with a member of our staff about the whole buying process.

Get in Touch

5608 North Dixie Highway


  • Monday
    9:00am - 7:00pm
  • Tuesday
    9:00am - 7:00pm
  • Wednesday
    9:00am - 7:00pm
  • Thursday
    9:00am - 7:00pm
  • Friday
    9:00am - 7:00pm
  • Saturday
    9:00am - 6:00pm
  • Sunday

Contact Information

5608 North Dixie Highway
Elizabethtown, KY 42701
Phone: (270) 600-2483
- + Disclaimers