Car loan pre-approval has gained popularity in Australia over the past few years. Hardly surprising, as the benefits are great and people have realised that it is better to get pre-approved first and to then shop around for a car rather than apply for finance afterwards.
What does car loan pre-approval mean?
Simply put, you apply for finance first and potentially get pre-approved then you look for a car to buy afterwards.
What is the process in getting pre-approved?
The same as the conventional car loan process, you apply for finance. The lender will then determine, based on your financial standing, whether to approve your loan or not. The amount that you will get preapproved for will depend on your financial situation.
Requirements for a pre-approved car loan
The requirements vary from lender to lender. Generally, you will need your pay slips, bank statements, liabilities, and a copy of your credit report.
In order to reduce the number of credit enquiries on your credit file, work with a finance broker in order to get quotes from various lenders with just one application. You’ll be able to save time and money. Have an expert help you navigate through the process.
What if I have bad credit?
There are lenders that provide pre-approved car loans for bad credit customers. It is a specialised service provided in order to help people get back on their feet and have the chance to repair their credit score. Not all lenders provide this service. Ask your finance broker for assistance if you believe your credit score is on the low side or you may have a record of defaults.
What to do next?
If you want to get started with the process and get a pre-approved car loan, contact us and our knowledgeable finance brokers will assist you. We’ll explain how the process works, what requirements are needed and assess your financial status together with you before applying for a pre-approval.