More than a few customers who are looking into a new or used vehicle purchase might want to take advantage of auto loan pre-approval. Generally, this pre-approval comes through an outside lender who is willing to look at a customer’s credit and other factors, evaluate their financial situation, and issue them a general pre-approval amount for use in an auto loan process. This type of car loan approval provides car shoppers with a good solid estimate of what they can expect for getting a car loan on a particular vehicle that they find at the dealer’s lot. Here are some of the main benefits of auto loan pre-approval.
Confidence at the Dealer’s Lot – Customers who don’t like financing through their local dealerships love the idea of getting car loan pre-approval from an outside lender before they ever step onto the lot. With pre-approval in hand, a lot of the typical financing questions that cause problems are automatically erased. When the customer looks at a sticker price on a vehicle, they know whether they are already qualified to buy it or whether they will have to dig a little deeper. Anyone who has struggled with arranging financing through dealer representatives will be likely to look to an auto loan pre-approval option in the future.
Getting a Price Range – Lots of people would say there’s no better way to get a price range than to seek auto loan pre-approval. What the lender comes back to you with will be your guideline for purchase price. This can even help a customer avoid pressures of upselling by a dealer or sales rep. Simply show your pre-approval amount and stick to it, or start lower and build up to your maximum purchase amount.
Avoid Sales Games – Some of the specific problems with financing at a dealer’s lot are so classic that many customers are already familiar with them. These include lengthy delays in the sales process, where a sales rep has to “visit the sales manager” to arrange for a better deal. These theatrical processes are often just a front for squeezing the most interest out of a customer, and this is where auto loan pre-approval comes in handy. A customer who enters the lot with pre-approval already knows where they stand, and can’t be swayed by questions about their credit or delays that dealer’s representatives contribute to “seeking approval”.
Your Credit Score – Another great aspect of arranging for car loan pre-approval is that you will be likely to get a copy of your credit report prior to looking at cars and trucks. When an outside party such as a lender requests a credit report, the consumer is often entitled to some information about whether there are any outstanding judgments on it. This gives drivers a chance to fix their credit before they start shopping for vehicles.
These are just some of the advantages of getting auto loan pre-approval. Customers can often get auto loan quotes easily over the Internet or by phone to use when visiting their local dealer’s lot.