5 Reasons To Get A Car Loan Pre-Approval
There are many decisions you have to make when purchasing a vehicle. The size, color, make, and model of your car, along with the dealership and financing company, are all critical choices.
But, there's one decision you don't have to make when purchasing a vehicle, and that's whether to get a pre-approved car loan. That's because getting a pre-approval should be a no brainer.
There are numerous benefits to going to this route. If you're not already clear on why this should be a non-negotiable in your car buying process, keep reading.
What Is A Pre-Approved Car Loan?
A car loan pre-approval is when you get conditional approval from your selected lender with an idea of the terms you qualify for, such as your loan amount, loan term, and interest rate. You can then take this pre-approval to a dealership and start the process of purchasing a vehicle.
Get the best rate
When you get a car loan pre-approval, it's best to shop around with a few lenders to see which one can provide you with the best terms. A good rule of thumb is to apply with at least three different lenders. In doing this, you can compare the interest rate, loan term, and maximum loan amount you're offered.
After analyzing your options, you can determine which one provides the best financing for you and select that lender. Going this route allows you to be in control of your financing and make the best auto loan choice for your needs.
Focus on your vehicle
Also, getting a pre-approval enables you to only focus on finding the right car when you go to the dealership. If you decide to get financing at the dealership, you have to both select the right vehicle and make sure you can get financing with reasonable terms. It's an easier process when you go to the dealership with financing in hand. Then your goal is solely to find the right vehicle that fits your conditional financing terms.
The dealer knows you're serious
Salespeople at a dealership come across many people in a day, and it's not always easy to know which ones are serious about buying a car and which ones are just looking around.
When you go to a dealership with financing in hand, your salesperson will know that you're serious about purchasing a vehicle and treat you as such. They will see that you have the funding for a car and work harder to ensure that they help you find a vehicle to fit your needs. Otherwise, you'll take your business elsewhere, and they don't want to lose a sale.
You know how much you can borrow
Getting a pre-approval lets you know how much you can afford to borrow in advance. There's nothing worse than looking for a vehicle in one price range, then coming to find out that the car you can afford is much lower or even much higher.
You want to begin your car search knowing exactly how much you can afford to borrow so you can avoid looking in the wrong price range. Doing this will likely help you cut down on the amount of time it takes you to find a vehicle because you'll be more selective in your choices.
Better negotiating power
Dealerships often expect that you will get your financing through them, which gives them all of the leverage. Since you're purchasing a vehicle and obtaining financing in the same place, they know you're relying heavily on them to get what you want.
However, when you go to the dealership with financing, you have the negotiating power. This can make your car buying process less stressful and hopefully allow you to spend less time at the dealership.
It's Time To Get A Pre-Approved Car Loan
The process is simple. All you have to do is provide your potential lender with any necessary financial, employment, and identifying information and submit your application. You should get a response quickly. Then you can compare a few different options and select the one that provides the best terms.
Before you know it, you'll be walking into a dealership with financing in hand ready to select the best vehicle for you.
At Ohio University Credit Union, we want you to get the financing you need and deserve. With rates as low as 2.74% APR, a user-friendly loan process, and personalized customer service for our members, we are ready to help you secure a pre-approved car loan.
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