Auto Purchase Loans

Any individual participating in our partners' related economic development programs.

• Applicants must complete training on credit.
• Applicants complete basic Auto Purchase training.
• Some partners may have additional requirements for program participation depending on local capacity – ask your local partner about any additional terms.

It is important to note that eligibility to apply for a loan differs greatly from approval. Your financial coach or business counselor is there to support you with preparing your application but will NOT be involved in making a decision on your application.

Generally, you need proof of income that is verifiable by pay stubs, receipts, or other documents. There is no exact income threshold, as we consider your debt-to-income ratio during the application review process. The most important factor is your income compared to your expenses. Your income should be sufficient to cover your cost of living expenses and projected loan repayments.

Applicants relying on gig economy income (for instance, Uber, Lyft, DoorDash, etc.) must provide proof of three (3) months of consistent income in their applications to maximize chances of approval.

Please review the document entitled How CEO Makes Loan Decisions to familiarize yourself with the various factors that influence the approval process for a CEO loan.

The monthly payment amount will depend on the total loan amount and the number of months to repay.

• Generally, the longer the repayment on a loan, the lower the monthly payments will be, but the total interest paid will be higher.
• As with all CEO loans, rates are fixed and will never increase after you sign your contract.
• Know your credit score! CEO's Auto Loans are great for those without good credit, but if you
  already have excellent credit, you may get a lower rate from another lender. 

The table below offers examples of total costs and estimated monthly payments for various loan sizes and terms.

Example Loans:

** Total interest and fees paid include the 2% closing fee and assume the maximum interest rate of 11.99%.

All vehicles being purchased must:

• NOT have a salvaged title;
• NOT have existing liens (unless refinancing and existing lien will be transferred to the CEO);
• Be registered in the name of the seller and;
• Have a vehicle sale price no more than 30% over Kelley Blue Book (KBB) Fair Purchase Price

CEO maintains internal "Good Deal" standards for all vehicles purchased with CEO Auto Loans. Please review our Support Center page, "Good Deal Auto Purchase Standards," for more information.

• Note that borrowers may purchase a vehicle from a dealership or a private seller (such as a friend or family member)
• If an approved borrower purchases a vehicle from a private seller (such as a friend or family member), the seller must add the CEO as the lienholder (i.e., transfer vehicle ownership to the CEO) before the CEO funds the loan. More details on private party sales can be found in this article. 

Additionally, approved borrowers agree to secure and maintain comprehensive + collision + uninsured motorist coverage with policy limits of at least 75% of the car's resale value. This will help repay your CEO's Auto Loan in case of an accident.

Approved borrowers should check their vehicle's Kelley Blue Book (KBB) value.

• Borrowers cannot apply for multiple loans to purchase a vehicle. Borrowers should have one loan per vehicle.
• An Auto Purchase loan cannot be combined with another CEO or 3rd Party Lender's loan to finance an auto with a price greater than $20,000.
• Applying for both a personal loan and an auto loan simultaneously could potentially impact your eligibility for a downpayment discount on the auto loan. You may only qualify for the discount if you can provide evidence of savings that will be used for the downpayment.
• Borrowers are welcome to use personal savings or borrow money informally from friends or family but cannot use multiple loans to purchase a vehicle.

If the car's sales price is less than the approved loan amount, borrowers may receive up to 10% of the total car sale price to help cover costs such as registration, taxes, or insurance.

For example, you may be approved for a loan of up to $12,000, and the car you find has a total sale price of $10,000.

• In this case, you can take up to $1,000 (10% of the car's sale price) in cash for registration, taxes, etc.
• This results in a total loan of $11,000 (the $10,000 sale price of the car + $1,000 in additional cash to you for taxes/registration).

1. Visit your local office to complete a CEO Loan Application and meet with a financial coach. Here's a list of the items you'll need for the loan application:
   • Personal email address
   • Valid government-issued photo ID
   • A U.S. checking bank account with routing and account number
   • Two most recent monthly bank statements (personal, business, and savings if available) - make sure the statements are complete and not missing any pages
   • Two most recent pay stubs or other verifiable business income statements

2. Your financial coach can help you complete your application (loan decisions are usually made within three weeks of application). Please submit all required documentation to ensure your loan decision is timely.

3. If approved, you can begin looking for a vehicle right away! Your approval is good for 60 days. Once you find a car you like, show the dealer your CEO Loan Approval email, and they are instructed to send us the Bill of Sale by email (preferred) or fax.

4. If the vehicle meets our "Good Deal" standards, we will reply directly to the dealer to request their ACH information for loan disbursement.

5. We will also share the CEO's lienholder information with the dealer, which will be added to the title. CEO must be listed as the first lienholder on all vehicles financed. This means CEO is the legal owner of the vehicle and it cannot be sold without our permission. If the seller does not add CEO as the lienholder, it is the borrower's responsibility to do so.

6. Once we receive the seller's ACH information, we can prepare the contract for your signature. Usually, this process will take 2 business days upon receiving the Bill of Sale.

7. We will send you the loan contract to sign electronically. Once signed, we will send the funds
   directly (by certified check or ACH transfer only) to the dealer, and you can contact the dealer to pick up your new car.
8. Funds sent via ACH are usually available within three (3) business days after signing the loan contract – most dealers are happy to let customers take possession of the vehicle immediately. However, some may want to wait until the bank fully processes the payment.
9. For more information, review "How to buy a car with a CEO Auto Loan?" 

Your local contact will be able to answer any additional questions you might have.