Today many couples walk through car lots and check out a variety of cars. In fact, you might wait until you find the perfect vehicle before you even think about auto loans. This is not a good idea for several reasons and here is why you should consider pre-approval before you decide to buy.
What Does Pre-Approval Mean?
When you want to buy a car, you can go to a finance company, bank or a car dealer and ask about financing pre-approval. They let you fill out a loan application and can tell you how much you qualify for. For example, you might want to buy a new car, but after pre-approval, you discover you only qualify for about ten thousand dollars. Instead of wasting your time (and the feeling of devastation you’ll get from a loan denial) you can check out quality used cars at affordable prices. In fact, some of the best-used car dealers have lots of good cars priced under ten thousand dollars.
Benefits
Once you know how much you can afford, you may check out auto loans to get the best possible rates. Some companies have cheaper rates than others. Lower interest rates can lower your monthly payments quite a bit.
Leverage
With a pre-approved loan, you can shop for cars with confidence. When you make an offer on a vehicle, you now have the funds to back it up. This is as good as making a cash offer, and you might save thousands of dollars with this strategy.
Bad Credit Loans
Is your credit rating shaky? You can still benefit from pre-approval programs from local used car dealerships. Some of them have guaranteed approval for auto loans, so you don’t have to drive an old clunker anymore. Dependable transportation is not just a dream.
