---
title: How Pre-Approved Car Loans Work
description: Learn how pre approved car loans work and how to start the process right away. We have helped thousands get a pre approved car loan. Call 1800277768 now!
---

[Lifestyle Articles & Finance Tips | 1800Approved - Finance & Loans ](https://www.1800approved.com.au/blog)

# [How Pre-Approved Car Loans Work](https://www.1800approved.com.au/blog/how-pre-approved-car-loans-work)

 Written by [John Paul Mendez](https://www.1800approved.com.au/blog/author/john-paul-mendez) | 20 April, 2017

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](https://www.1800approved.com.au/blog/how-to-get-a-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.**](https://www.1800approved.com.au/car-loans/)

 

## **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.

 

## [Contact us now](https://www.1800approved.com.au/car-loans/) and we will help you save time, money, and, most importantly, help you get a new car.

[View full post](https://www.1800approved.com.au/blog/how-pre-approved-car-loans-work)

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