Car Loan Pre-Approval: The Best Way To Start Buying a Car

Car loan pre-approval is something we like to speak on a lot with our blog. There's good reason for that, it plays an important part in our car loan application process. So much so, that we see it to be a must!

Why Should You Get Pre-Approved?

There are several good reasons why we recommend you get preapproved for an auto loan. There are some practical reasons and an important emotional reason.

It Shows How Much You Can Borrow

An important aspect of auto loan preapproval is showing you just how much you can borrow. It’s a yardstick to show how much you could potentially borrow in your current situation. This saves applying for the loan only to be refused.

When you fill in an auto loan pre-approval application online, the business you filled it in with will send it off to any potential lender that they think will approve the application - usually around 2-7 different banks or lending companies! This is why it's so much easier to get pre-approved first. Let the dealership do the leg work!

If preapproval doesn’t work you can simply lower the loan amount until it does. Then you have a fairly accurate idea of where you stand.

It Helps You Decide a Down Payment

If you know you can borrow X amount as an auto loan and the car you’re looking at costs Y, the difference between the two is the amount you need to use as a down payment.

Whether you make that up with a trade-in or save for the deposit is up to you. But what you have after preapproval is a reliable measure of how much you’re going to need.

If you need some more help deciding how much you should put down on your next car, click here to learn more.

It Tells the Dealership You're Committed

With the best will in the world, salespeople cannot spend hours with everyone that walks into the dealership. They don’t have the time or the people for that. If you walk into a dealership preapproved for a loan, you will get the attention you deserve as you’re a qualified buyer.

You have made your intention clear, shown everyone you’re serious about buying a car and, most importantly, shown that you’re in a position to buy a car. All we need to do now is find you one!

It Sets Your Expectations

That emotional aspect cannot be underestimated. Unless you have superhuman willpower, you will walk into a dealership and fall for the most expensive car there. You’ll want all the latest tech, the latest safety equipment, and the newest model.

What auto loan preapproval does is set your expectations before you get there. You’ll know how much you can afford. You’ll know your budget. You’ll know whether you can buy that luxury model or not. All before you see them up close.

This is an incredibly important element of buying a car and something that can save you money and heartache.

How To Get Car Loan Preapproval

Getting auto loan preapproval in  is easy. Follow this link and complete the form. Even though it says Finance Application, it’s preapproval. It is not an auto loan application.

We’ll work our magic, and see if you qualify for an auto loan and how much you could borrow.

It’s fast, easy and painless. All things we like when dealing with personal finance!

Car Loan Pre-Approval