Getting approved for car finance can be the most nerve-wracking part about visiting a car dealership. You may have spent hours going up and down the rows of vehicles to find just the right one. Now, you’re sitting at the dealership, waiting to find out if you’ve been approved for the loan.
If you get approved for car financing before visiting the dealership, you can remove all of that tension. Not only will you be able to deal with the finance department easier knowing that you’ve been approved, but you can also benefit from these 3 perks:
One of the most stressful aspects of visiting a dealership is the uncertainty of a budget. You don’t really know how much you can spend on a car because you don’t know what you can qualify for. If you’re not pre-approved, you could be looking at all the wrong cars – either too high or not high enough, in some cases.
You can find out what your interest rate range is; most rates will vary based on the model year and mileage of the vehicle you purchase, the older the car, the higher the rate. When you get pre-approved, you have an interest rate range as well as the total amount that you’ve been approved for. That’s enough to start calculating what your monthly payment will be. Once you do that, you can budget to see what you can afford. Then visiting the dealership is much easier because you know exactly how much you can spend without going over your budget.
The first lender may not be the best lender. Not all lenders are going to provide the same deal. Interest rates can vary significantly. You could get a great prime rate with one and another will provide you double the amount with a subprime rate. Much of it will have to do with credit scores and whether a lender even checks a credit score before issuing approval. If you have a good credit score, you want to avoid lenders that advertise no credit checks or guaranteed approvals because they aren’t checking scores at all.
Plenty of lenders are out there. Regardless of your credit history and your current situation, you can find a lender. This will allow you to start rebuilding your credit immediately. This will work to your advantage but only if you take the time to shop interest rates. You may be able to save a significant amount of money on your monthly payments by lowering your interest rate by even half a percent.
Car financing can be approved ahead of time. This will not only save you time at the dealership but help to clear up some questions you may have as well. Dealerships don’t mind if you come in pre-approved because they make money by selling cars. You may even be able to get a better deal on the car itself by securing your own credit source.
If you get approved for car financing before visiting the dealership, you can remove all of that tension. Not only will you be able to deal with the finance department easier knowing that you’ve been approved, but you can also benefit from these 3 perks:
- You know what you can spend on a car
- You know what your interest rate range is
- You know you can afford the car you pick out
One of the most stressful aspects of visiting a dealership is the uncertainty of a budget. You don’t really know how much you can spend on a car because you don’t know what you can qualify for. If you’re not pre-approved, you could be looking at all the wrong cars – either too high or not high enough, in some cases.
You can find out what your interest rate range is; most rates will vary based on the model year and mileage of the vehicle you purchase, the older the car, the higher the rate. When you get pre-approved, you have an interest rate range as well as the total amount that you’ve been approved for. That’s enough to start calculating what your monthly payment will be. Once you do that, you can budget to see what you can afford. Then visiting the dealership is much easier because you know exactly how much you can spend without going over your budget.
Pre-Approval Lenders Online
Online lenders are making the pre-approval process very easy. With just some basic information, a Social Security number and income details, a decision can be made of whether a lender will provide you with an auto loan or not. You can get your approval on the same day. This means it may be in your best interest to spend a few minutes online getting pre-approved before you even head down to the auto dealership.
The first lender may not be the best lender. Not all lenders are going to provide the same deal. Interest rates can vary significantly. You could get a great prime rate with one and another will provide you double the amount with a subprime rate. Much of it will have to do with credit scores and whether a lender even checks a credit score before issuing approval. If you have a good credit score, you want to avoid lenders that advertise no credit checks or guaranteed approvals because they aren’t checking scores at all.
Plenty of lenders are out there. Regardless of your credit history and your current situation, you can find a lender. This will allow you to start rebuilding your credit immediately. This will work to your advantage but only if you take the time to shop interest rates. You may be able to save a significant amount of money on your monthly payments by lowering your interest rate by even half a percent.
Car financing can be approved ahead of time. This will not only save you time at the dealership but help to clear up some questions you may have as well. Dealerships don’t mind if you come in pre-approved because they make money by selling cars. You may even be able to get a better deal on the car itself by securing your own credit source.