All about Auto Loans For Physicians

Doctors may earn handsome salaries, but that doesn’t mean they are exempt from using credit to make large purchases. Car loans, for example, are one such purchase that most people, including doctors, make with the help of a structured loan. Below we will cover everything you need to know about physician auto loans so you can drive away happy while remaining within a reasonable budget.

Do Physicians Need An Auto Loan?

Many doctors will buy a car outright, while others will lease their vehicle. In some instances, a doctor may consider buying a leased vehicle to save money while also maintaining access to current models. Physicians should always consider securing a specialized auto loan that takes their future earning potential high debt loan into consideration.

What Is A Physician Auto Loan?

Physicians are often saddled with an inordinate amount of student debt once they graduate. Even if they can secure an internship or a lucrative contract right out of school, it will take some time to pay everything off. However, most lenders that offer these types of specialized car loans understand that their future earning potential makes them a relatively safe risk. A typical auto loan will weigh both a person’s credit score and their debt-to-income ratio. With a physician’s auto loan, student debt is not factored into the equation.

Physicians are often saddled with an inordinate amount of student debt once they graduate. Even if they can secure an internship or a lucrative contract right out of school, it will take some time to pay everything off. However, most lenders that offer these types of specialized car loans understand that their future earning potential makes them a relatively safe risk. A typical auto loan will weigh both a person’s credit score and their debt-to-income ratio. With a physician’s auto loan, student debt is not factored into the equation.

Choosing The Right Terms For An Auto Loan

When a person is in the market for a new or used car, they will typically visit a few lots and apply for financing on the spot. However, this is just one of the most common mistakes doctors make when shopping for a new car. On-the-spot financing is inevitably going to favor the lender. That means higher interest rates and higher monthly payments for the buyer. As a physician, it is critical that auto loan funding is secured before ever stepping foot on the lot. Choosing the right lender and the right loan allows you to negotiate fair terms that will ensure your long-term financial health.

What Are The Advantages of A Physician Auto Loan

There are quite a few benefits to securing a physician auto loan over a traditional auto loan. Namely, the terms will be more flexible which will allow physicians to tailor their payments to fit their budgets. Lower interest rates are perhaps the most important benefit to a debt-laden physician. Even with a high DTI, lenders will offer lower rates based on doctors being low-risk investments. Approval times also tend to be much quicker thanks to the career stability of the medical field.

Tips On Getting The Best Doctor’s Auto Loan

Going into the process prepared will allow you to negotiate the best rates and the highest loan amounts. Make sure that you have all of the documentation needed for your application. This includes proof of income, job offers, tax returns, and employment verification letters. It is also a good idea to negotiate your insurance at the same time you plan to secure an auto loan. Always shop around to get the best rates and deals, even among specialized lenders. Don’t just accept the first offer provided, shop around and negotiate.

Our Final Thoughts

A lack of solid credit history and high student debt is a common problem physicians face. Thankfully, some lenders offer specialized auto loans and even specialized home loans with the needs of physicians in mind. Like with any loan, it is important to shop around, compare rates, and negotiate before signing on the dotted line.