How an auto loan pre-approval helps with the car buying process

Buying a new car is both exhilarating and terrifying. Sifting through dealerships, prices, reviews, warranties and the opinions of your friends can be overwhelming and only complicated when you arrive at the dealership for a test drive.

Once you’ve found your car, it’s onto the financing department where you hope to get the best rate based on your credit history.

If you want to take some of the mystery and misery out of the car buying process, start with an auto loan pre-approval!

 

What is a pre-approval?

A pre-approval is a process in which we send a loan application through underwriting to  determine whether or not we can offer a conditional pre-approval based on your application. If we find that we can offer a pre-approval, we’ll let you know what amount you’re approved for, the term of the loan and what the lowest rate could be for your new vehicle.

We say “could be” because the final loan approval is dependent upon the collateral (vehicle) you find. For instance, an older vehicle with more miles could come with a higher loan rate, while a newer vehicle with lower mileage could have a lower rate. Your final rate and loan term, and thus your monthly payment, will be determined by the collateral and conditions of the loan.

Once you’re ready to start the car buying process (or if you’ve found a car and are ready to go!), head on into a Consumers office, visit us online or call us at 1-800-991-2221, and we’ll work on pre-approving you for your loan. Once you’re pre-approved, you can walk into the dealership with confidence!

 

Why should I get an auto loan pre-approval?

NerdWallet lists five reasons you should get auto financing before heading to the dealership. With an auto loan pre-approval, you’ll show your salesperson that you’re an informed buyer who knows what they want.

Credit Karma brings up many great points, such as knowing how much you can borrow. This can give you an opportunity to negotiate a price in your favor because you know the maximum you can spend and still maintain a comfortable payment.

The Balance points out that if there’s a problem with your credit report, you can find out about it and fix it before sitting down with the finance manager at a dealer. This gives you additional control over the car buying process.

When you’re ready to buy your next car, we’re here to help! From your pre-approval to the loan closing, we’ll walk with you every step of the way to make sure you get the car you want.

All loans are subject to approval. Rates, terms and condition are subject to change and may vary based on credit worthiness, qualifications and collateral conditions.

 

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