Pre-approval is when you seek finance first before looking for a car to buy. This is beneficial for a number of reasons;
1. You’ll know if you will be approved or not – It will be a waste of time if you searched for the right car, only to end up being denied a car loan.
2. You’ll know how much you will be approved for – No overspending and you know exactly how much to bargain for at the dealership.
3. Sure car loan – Since you are already pre-approved, all you need to do is look for the best car that fits your budget.
4. You’re as good as cash buyer – With the pre-approved car loan on hand, you are in a better position to negotiate a price and dealers will try to match your demands because what you have is as good as cash.
If you want to get started now, contact us and we’ll guide you through the process.
How to start the pre-approval process?
Check your credit score – Check your credit score for errors and inaccuracies. If you find some, file a dispute in order to correct the error. Most of the time, when the errors are removed, the result is a better credit score.
Check your debt-to-income ratio – Be honest with yourself and assess your finances. Better still, have a finance broker do it for you.
Compare loan rates – Talk with a finance broker in order to get quotes from different lenders with just one application.
Once approved, you can go to a dealerships and shop around for your new car. Pre-approved car loans can also be used to buy from auctions and private sellers.