Have you ever gotten a pre-approved car loan? Have you forgotten the pain you felt when you have to abandon the dreams you had of getting that car you wanted so badly? The thing is that you could have avoided that heartbreak by getting yourself prequalified for a car loan ahead of time. It would have prevented you from looking at that dream car in the first place. The thing is that times are now different in the car lending business.
When you get yourself a pre-approved car loan ahead of time, then you have provided yourself with a crystal clear image of what you can afford to spend. Also, the lender is ready to pay up the amount you will need when the time goes, so that the car loan business goes smoothly. Overall, your car buying experience will be a very rewarding one.
Knowing the Eligibility Criteria for Pre-Approved Auto Loans
To get this whole thing started, you will first need to provide all your financial documents to your potential lender. He or she will then check out your credit score and credit history, and also look at your banking activities over the past year or so. After they understand where you are financially and how reliable you are in terms of paying your debts, they will furnish you with already approved loan amount for buying your new car.
So Why Even Get Pre-Approved Car Loans?
The following are reasons that would justify the reason for getting one of these kinds of car loans. Let us examine each one of them.
Your Car Buying Process Is Much Clearer
Once you get the amount of funding that your lender is willing to give you, that answers so many questions that any car buyer has. The first of those questions is obviously how much you can spend. That helps you pinpoint your search for a new car. And there is no question as to whether the car can be yours or not – you already know.
It is a Time Saver
So let us suppose that your lender gives you a pre-approved car loan for a smaller amount than you anticipated? This is not necessarily a problem because now you know how big your down payment needs to be for that new car you want.
If they give you more than you needed, perhaps you could get more car than you originally thought. Either way, this pre-approved loan gives you much more control and no unpleasant surprises. And no embarrassments either!
Thus, your car buying process really becomes that way that you have always envisioned. If you remember, traditional car loans always seem to result in ugly surprises in the end. Your loan amount got reduced, your interest rate came in higher, your car payment is more – and you end up very angry and upset over the whole thing.
You can Get Low-Interest Car Loan Rates
Believe it or not, car loan lenders will actually offer lower interest rates to those auto buyers that apply and qualify for a big fat pre-approved car loan. The reason for this is that they exercise strict oversight on financial processes and documents and will only approve the loan applications of those people who present the lowest amount of risk. Therefore, they do not worry about this investment at all as they are can offer these reliable borrowers much more affordable and lower interest rates. When you try to get a traditional car loan, you will find that interest rates will be considerably higher. This is simply because the car loan isn’t designed for you exclusively.
They Provide More Time to Borrowers
After you receive a pre-approved car loan, you then have the assurance of getting your money according to your personal requirements. This means you now have the luxury of waiting for any additional festive offers and even enjoying more discount and benefits.
Conversely, seeking and wait for approval on your traditional car loan can be very time consuming. And there is a big chance that you will not be able to get the same festive discounts and offers that become available during the loan process. This can mean some pretty significant savings for the borrower.
Negotiations Will Be Much Easier
There is no doubt that when you get a pre-approved auto loan, car dealers see this as you literally having cash right in your hand. The car dealer now sees you as a serious car buyer and wants to sell you a new car as fast as possible. The reason is because you have the cash and you are going to spend it on a car somewhere. And he or she does not want you to leave without spending your money with them. This gives you a huge upper hand during the negotiation processes.
When you were getting traditional car loans, the car dealers never took you serious until they discovered that you were able to buy a car. Until then, they assumed you were just another wannabe wishing for a new car that you could never afford. The difference with your pre-approved loan is that you now have control over the car buying process.
You Get Future Benefits
Whenever you make good on your pre-approved car loan, guess what? You can get another one in the future and enjoy the same benefits again. Here’s one thing for sure. If that lender who gave you the loan in the first place get repaid for the that loan, then they do not want you to go anywhere else for your next car loan.
Thus, you can expect to receive more benefits and discounts from them in the future. So you would be a fool not to take full advantage of this fact. Let them give you another auto loan and pay off that loan as well. This is how people get great deals with they buy cars and trucks – and how you can too!
Find out more about getting your pre-approved car loan – https://www.consumerfinance.gov/ask-cfpb/whats-the-difference-between-a-prequalification-letter-and-a-preapproval-letter-en-127/