Get Pre-Approved For Car Financing

An auto loan pre-approval is a conditional approval you can get from the dealership for an idea of the loan amount and terms. Getting pre-approved means the finance department reviews your credit and income beforehand. You will arrive at the dealership ready to find and negotiate the price of the vehicle instead of interest rates. It streamlines the car shopping experience and gives you a clear picture of your budget and monthly payments. Yet, getting pre-approved doesn’t mean you have to go forward with the purchase if you don’t find the right vehicle.

Get Pre-Approved for Auto Financing

Blue Jeep parked on the side of the road

Jeep by Tim Taylor is licensed with CC BY 2.0

An auto loan pre-approval takes care of the hard work before you arrive at the dealership. Getting pre-approved for auto financing means less stress from making quick on-the-spot calculations. Buying a new vehicle is a big decision, and pre-approval allows you to make sound choices in the privacy of your home. Car shopping should be an enjoyable day. With a pre-approval, you will show up ready to focus on the exciting part: test driving and choosing the perfect car that fits within your budget. Read on to learn more about getting pre-approved for auto financing.

There Are Many Advantages to Auto Loan Pre-Approval

Shopping for a new car is almost always stressful and can take many hours of your day to complete the purchase. That is true even if you pick the vehicle you want before you get to the dealer. Getting pre-approved means that you already know the loan amount and rate before you choose which car you want. You will arrive with one thing in mind: finding your next vehicle. It helps ensure you have the best rate to fit your needs and are all set with financing. The pre-approval process is quick and easy, but you will need to have information ready, including:

  • The pre-approval process requires yearly income and housing payment information.
  • The process requires information to establish identity, including your residence.
  • Getting pre-approved also requires providing the type of car you want to buy and trade in or how you will make the down payment.
  • The finance manager will also want to know the loan length you are looking to take out.

Knowing your budget beforehand means less persuading in the dealership and more time and energy to focus on the car you want. It’s also a great idea to know what your credit score is. A low credit score can impact your chances of getting pre-approved for an auto loan. Don’t forget to bring documentation to support your pre-approval terms to the dealership.

Getting pre-approval on an auto loan can help you in other ways, too:

Helps You Set a Budget

Getting an auto loan pre-approval allows you to set a practical budget for the amount you wish to spend on your new car. Vehicle shoppers commonly get swept away in the excitement and spend more than they intend. When you arrive at the dealer with a pre-approval, you will already know the maximum potential loan amount and the payments and interest rate for that amount. You also do not have to spend the total pre-approved loan amount.

Remember to add approximately 10% to the purchase price for taxes, tags, or other fees. Knowing what you can spend means you won’t waste time or decide on a car only to find out it doesn’t fit within your finances. It is always disappointing to go through the time and stress of bargaining only to find you cannot receive approval at the end of the process. Walking away without your brand-new vehicle is a terrible way to end an already stressful day.

Allows You to Focus All of Your Attention on Selecting the Right Vehicle

Knowing your budget, you can focus on finding the perfect vehicle and avoid the guessing game. The dealer finance department will be ready to complete the sale after you pick a car. You can let the dealer representative know you are pre-approved and focus on negotiating the cost of the vehicle. If they offer deals, you can consider those later, but the most critical thing to consider is the cost of the automobile.

Strengthens Your Negotiating Position

Walking into the auto dealership with a pre-approval improves your negotiation position because it is like being a cash buyer. It allows you to shop for cars based on the purchase price rather than estimating payment amounts until you learn the financing details. It means facing less high-pressure sales tactics throughout the entire process. Remember, a pre-approval doesn’t guarantee final approval and loan funding. Yet, it is an excellent indication of your ability to get financing and shows you how much you can afford.

Our Finance Department

Get pre-approved at Bachman CDJR, then head to our dealership. A pre-approval gives you an edge because you’ll know how much you can finance before you visit the location. You will have an estimated interest rate, learn how long you’ll have to repay the loan, and calculate your monthly payment. That’s powerful knowledge. You won’t waste time test-driving or getting attached to vehicles that aren’t a good match for your budget.

Purchasing a new vehicle always requires careful planning and solid decision-making. Thus, getting pre-approved is the best way to plan and stay within your price range. You can also avoid negotiating the loan term or interest rate with the dealership representative. Pre-approval lets you steer clear of all the unnecessary worry, stress, and wasted time and energy. Instead, arrive ready to focus on finding the car that fits your needs. Getting pre-approved for auto financing will put you in the fast lane to finding your perfect vehicle. If you have any questions, feel free to use the form below, or call us at 812-920-5491.

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