Acquiring an auto loan could be a detailed procedure for some and a complex one too, but with the right amount of guidance and knowledge and steps pertaining to it, one can easily get a hand on their favorite wheels. For acquiring an auto loan with tax ID number the process gets a lot better for the residents of the United States of America.
What is a Tax ID Number (TIN)?
Tax ID Number, also known as the Employer Identification number (EIN), is an identification number for the purpose of taxation in the United States of America. The Tax id number is also famous by the name of Federal tax payer Identification Number, which means exactly the same. The tax id number is provided by the Internal Revenue Service (IRS), this tax id number is used to identify your business to the agencies (federal) which are responsible for business regulation.
The tax identification number (TIN) is a nine digit number which is also a tracking number generated by the IRS containing all the information pertaining to the tax payments, amounts and the like. The tax number is required on all the tax returns filed, as the necessary information by the IRS.
Types of Tax ID Number
The Tax ID Number (TIN) is further classified into following groups:
a) Social Security Number –SSN
The social security number is one of the most popular types of tax identification numbers. The TINs issued to the individuals is known as SSN which is a necessary document to be obtained by the citizens of USA. The SSN number has to be obtained by the parents for a child who is to be claimed as a dependent in the income tax papers. Though most of the time the application process for SSN is free of cost, there are some of the fee based service providers for the same.
b) Employee Identification Numbers – EIN
One of the types of Tax Identification Number (TIN) is Employee Identification Number (EIN) which is an important number to be acquired as per the IRS regulations for businesses. This EIN is used by the Internal Revenue Service in order to identify the trusts, estates and the corporations which must pay taxes. The acquisition of EIN by these groups is essential to the filing of taxes and the necessary documents related to it.
c) Individual Tax Identification Number – ITIN
The ITIN number is one of the very famous forms of tax identification numbers and the reason for it is because it is one of the tax identification numbers which the non resident aliens can get (the ones who do not qualify as citizens and thus for SSN). Also the spouse of a non resident alien is required to include the number on the tax returns when filed, for the records with IRS.
d) Adoption Tax Identification Number – ATIN
The ATAN (Adoption tax Identification Number) is one of the important tax id numbers to be obtained for the adopted children by their adoptive parents so they could be claimed as the dependents. This only applies to the domestic adoption and in case where the parents fail to obtain the child’s SSN. For ATAN, the adopted child must be a US citizen and the adoption must be pending at the time the application is filed.
e) Preparer Tax Identification Number – PTIN
The PTIN is required by IRS for every preparer who charges for the service of completing all the tax returns (or part of them) or tax refund, for an individual. Prior to that there wasn’t a requirement of PTIN, IRS started to require it from January 01st 2011.
How to Apply For a Tax Id Number
In order to apply for a Tax Id Number, these simple steps are to be followed:
- Log on to IRS website or visit your local library to get a copy of IRS Form SS-4.
- Fill the form which would require basic information about your business.
- Mail the form to the IRS.
- Shortly, you will receive your nine digit Tax Id Number in mail (it takes approximately 4 weeks).
Auto Loans with Tax Id Number
Out of the five types of tax identity numbers, only two of them are eligible to be used for application of a loan; SSN and EIN.
1. Auto Loans with SSN Tax Id Number
In order to obtain an auto loan using the type of tax id number known as Social Security Number (SSN), one has to learn about the SSN. The Social Security Number is used by the individual taxpaying citizens of the United States of America to report taxes. SSN is also needed when one is looking for jobs in the US and also is used s a mark of identification. That being said, the SSN is also used for one of the basic purposes, to apply for a credit card or buy a car. To apply for auto loans with Tax Id Number (SSN) you will have to submit your credit information and basic documents would be of help which you would have submitted when applying for your SSN. On a regular basis it is not difficult to obtain auto loan with a tax id number.
2. Auto Loans with Tax Id Number (EIN)
Businesses are the entities entitled to receive the Employee Identification Number (EIN). Thus, if you wish to obtain an auto loan with tax id number, you’ll have to identify yourself as a business. In the name of a purchase you will be able to obtain an auto loan with tax id number of EIN. The correct application form has to be filed if you wish to use your EIN instead of SSN to acquire the auto loan with tax id number. It is advisable to not use the EIN unless it is in actual a business purchase for any issue occurring later such as a repair involving credit information could be the reason you get caught for providing EIN for a personal car loan.
How to get an Auto Loan?
When you are considering your options of getting an auto loan with tax id number, you need to know about how to get a car loan and the procedures that may follow along with tips to get the best deal against your money.
1. Check your credit details
It is highly important to check with your credit before you apply for an auto loan with a tax id number. Your credit information is vital to the application acceptance for your auto loan with your tax id number. People with high credit score end up being lucky as they get a low rate on car loan when applying for auto loan with tax id number which in turn would save you from a hefty amount of interest on your loan. A good idea is to keep an eye on your credit reports so in case there is a discrepancy you can report it and get it rectified immediately.
2. Select a payment plan
It is highly important to select a payment procedure which suits you best before you apply for an auto loan with your tax id number. The payment plan you choose depends on your earning and also on how much you could afford to pay in the repayment of loan without putting stress on your own budget. The payment schedule must be thoroughly discussed with the concerned authorities and you must keep in mind that while you may opt for a long term loan it shouldn’t create an upside down situation which means you’d be paying a total sum for the repayment of loan more than the actual price of the car.
3. Choose a Loan Type
While you are determined to get your hands on your favorite wheels, you do not have to limit yourself to one financial institution when considering options for auto loan with tax id number. Check with different sources to get enough data about the loan requirements as well as the installments and interest payment schedules so that you are able to choose one package which suits you best. Once you qualify for a loan you will be getting a ‘pre approval’ which helps you determine the course of action, type of car and the price etc, for the time it is valid. It is a good idea to spend on your automobile less amount than the one you have gotten pre approved, for an amount higher than that would not only add cost but with the added interest amount it could be an insane web of payment after payment.
Even if someone does not have a very good credit history and thus score, he/she would be able to get the pre approval but at a higher interest rate. Also it is important to browse through your options and select the car within a 14 day period for which you are applying for an auto loan with tax id number.
4. The selection of vehicle
It is one of the fundamental tasks and also the purpose which has initiated the question of auto loan with tax id number in the first place. When you are going through your options there are many things to keep in mind before picking up the final car. Your car dealer may lure you into a loan program which would offer small amounts of payment and the time duration would naturally stretch, however this w3ould be more costly in the long run thus it is better if you can avoid it, do so.
Also, if you are applying for an auto loan with tax id number for a used car it is important to know that the loan should cover for that and that the vehicle must not be a make older than five years or has covered more mileage than 75,000. The interest might be a little higher of these auto loans with tax id number.
5. The paperwork
Once you have selected the vehicle you are obtaining the auto loan with tax id number for, the next thing you need to do is to file the loan papers and the necessary documents for your auto loan with tax id number. The auto dealers have finance department which looks into these matters and can assist the buyers into the financial complexities and paperwork. The add-ons would be offered such as the warranty and paint protection etc and it is important for you to research on all of it before you go to make a purchase and sign the final deal so that you are not pressured into any of the add-ons with your auto loan with tax id number.
The payment details of the auto loan with tax id number will be sent over to you by the dealer once the sale is finalized and the payment schedule would be finalized one which suits you and the dealer. If you plan to pay off the loan by mail, you will have to sign up for it and it is also a good idea to sign up for online payments so you can check on your payment schedules and credit information etc.
Tips To Negotiate a Car Loan
Once you have made the decision to obtain auto loan with tax id number, you will be in for a lot of decisions pertaining to the choice of your vehicle and the deals which suit best to you. Also you will be managing your finances accordingly for an auto loan with tax id number is a good amount and needs a strict repayment schedule which ensures feasibility on both ends.
1. Negotiate the prices
It is highly important top stay up for negotiation and be ready for it with your own price quotations once you plan to acquire an auto loan with tax id number. When you will be asked questions about how much you are going to pay for the installments monthly and what payment do you want it to be, it is essential you know your answers to it for a customer who doesn’t know much isn’t in a position to negotiate for a deal that suits him. Don’t settle for the offer they make you for that may pull out of your picket a lot more than they should, thus don’t forget to negotiate the price.
2. Do not fall for the ‘extras’
Though it would sound like a wonderful idea when the dealers would talk about the extra services such as fabric protection, alarms, warranties etc; it is better t6on stick to the basic needs only and not go for the many extras offered to you when opting for an auto loan with tax id number. The chances are, though these offers may seem beneficial, the dealers would be charging a lot more with the help of these services and you’ll end up paying more for your vehicle in total.
3. Do not go for long term loans
One of the tip[s to negotiate the best deals with your auto loan with tax id number, is to stick to the idea of short term loans. The long term loans will sound very attractive for the small payment amounts per month over a long period of time. The truth is, you will end up paying more if you total the sum of all the payments with the interest. The dealers have a good plan of ripping off the customers with the added interest amounts over a long period of time, thus it is better to go for the short term loan repayment schedules.
4. Don’t let your emotions drive you
You are a buying a vehicle but when you let your emotions drive you to a decision rather than a rational decision about the choice of deal for auto loan with tax id number, you will end up falling prey to the many tricks of the dealers aimed at making you opt for a higher price. Always make a rational decision based on your own research and calculation so that not only you get the best prices and deal for your vehicle but also to make a choice of the right dealer for you. If a dealer isn’t willing to negotiate any deals with you, it is better you look for another option and not let your love for a certain car make you lose a lot of money in undue place.
5. Check with the interest rates
You need to make a smart choice about the interest you are going to pay for your vehicle and also that you should know the interest amount that you could afford. Do not let the deals trick you into loan packages with high interest rates as it will only get complex with time when the time comes for payment. The people with an average credit score get about 10-12 percentage of interest rate while the bad credit scores get about 15% or higher rates of interest on their auto loan with tax id number. But the problem is, some people with bad credit score are willing to accept very high amounts of interest such as 24% or more, don’t do that.
The glossy deals may shake your decision which you would have thought about while doing your research, but it is important to see where you are making the payment and how you are doing so. Also, it gives a fair idea about the vehicle dealerships and the ones which are willing to attract the right customers and the one which are only working to fill their own accounts regardless of the customer satisfaction.