How can car loan pre-approval help buyers?
Regardless of whether you’re interested in a convertible or a sensible hatchback as your next set of wheels, it’s important to get a deal that’s right for you. One way to do this – and to streamline the buying process – is to have your car loan approved in advanced.
This is known as preapproval and comes with all sorts of benefits to buyers that make purchasing a car simpler and smarter. Let’s take a closer look at three of the major ways that car loan preapproval can benefit you.
Buy with confidence.
The first reason why a lot of car buyers seek preapproval is that it allows them to search for a new vehicle with confidence. There are a couple of reasons for this, with the first being the simple knowledge that your loan has been approved. This eliminates any stress about financing and gives you the freedom to buy when you’re ready, rather than being forced into purchases that may not be the perfect fit financially.
The second big benefit of pre-approval is that it effectively turns you into a cash buyer. If you do see the car of your dreams, this lets you act quickly without having to delay the purchase while seeking a quick loan.
Fixes a budget.
One of the trickiest parts of buying a new vehicle is working out your budget, particularly if you know that you’ll be taking out a car loan. If you’re not completely sure of the ins and outs of your financial situation, working out an appropriate budget that will get you what you need without breaking the bank can be a tricky task.
With pre-approval, however, all of that is taken care of. A lender will look at your financial situation when assessing an application for car loan preapproval, confirming your ability to afford a certain amount and giving you peace of mind. Of course, having a set budget also makes it a lot easier to quickly identify which cars are within your price range and which ones are simply too expensive.
Gives you bargaining power.
Finally, perhaps the biggest benefit of car loan preapproval is that it gives you far more bargaining power. As you’re effectively a cash buyer with a preapproved loan, there’s no reason to discuss financing with a car dealer. Instead, you’ll be in a stronger position that allows you to focus on negotiating a good price.
Best of all, pre-approved car loans can be used to purchase vehicles at private sales and at auction, in addition to through dealerships. This means you’ll still have the same range of choices, but a stronger starting position and more freedom to choose the car that’s best for you.
To find out more about car loans and how to make them work for you, get in touch with the team here at Beyond Bank today.