Car loans are often an essential part of buying a car, but they can be stressful. It can be very annoying to pick out the perfect car and then not get approval for the loan. That’s where car loan pre-approval may be the key for you. But what is it and should you get pre-approved for a car loan? This article will explain.
What is Car Loan Pre-Approval?
For most car purchases, the process is that you’ll go to the dealership, pick out the car you want, and then arrange with the dealership which loan plan you want to go with if you’re approved. Pre-approval then as you may expect is finding the loan before you choose the car.
It’s a different way of tackling the same problem, instead of going into the dealership and asking if you qualify for a car loan, you’re asking “What do I qualify for?” and then using that to choose the right car.
You can get a loan Pre-approved online and on any available creditors’ website (like us!). You’ll have to go through the same steps as a regular loan, give all your information, and your income, and they’ll run a credit check on you, but once you’ve done it. It can greatly benefit your car shopping.
Benefits of Getting Pre-Approved
Pre-approval has several benefits when you’re car shopping. Pre-approval gives you a very clear and hard budget to follow, since you know exactly how much you’re going to be able to pay, and that can keep your focus on the cars that are actually within your budget. That will save you lots of time asking and then being declined loans on more expensive cars.
Pre-approval can give you the upper hand in negotiations, since an important detail is that you’re not locked into a pre-approved loan, if you get a better deal you can take it. So if you tell the dealership about your pre-approved interest rate, they may find you a deal with a better one, and you can take it. Either way, you can get the car.
Pre-approved loans can be especially helpful to people with poor credit history. While these benefits are useful to anyone, they are especially useful when you’re very likely to be denied a loan, which with poor credit you are. Pre-approval means security in knowing that you will get a loan no matter what, even if your car purchasing options are more limited.
Finally Pre-approval just makes the actual buying of the car go much faster. With getting pre-approved for a car loan in Grimsby there’s no hassle about waiting for approval, you can sign the deal and drive away with the car on the same day.