Why is pre-approval for Your Car Loan a must before you Go Shopping?
When you want to get a new or used car, the whole process seems extremely stressful. First, you have to visit multiple dealerships and look at their range of vehicles. You make a list of cars compare their features, and test drive them so that you can come to a decision.
Once you complete these activities, you have to do the hard part, getting the necessary finances. You have to talk to various lenders to see which one will give you a car loan at a lower rate. Isn’t it your dream to have a solution where you can forget about the stress of getting a car loan?
Now you can, thanks to pre-approved car loans, which make your life convenient. If you are on the fence on whether you should for pre-approved car loans, here are three reasons which will change your mind:
Gives you a sound budget
A huge advantage of getting a pre-approved car loan from a lender is that you now have a complete budget on how much you should spend to get a vehicle. Now that your budget is realistic, you will know how much you have to spend every month, to pay off the car loan. If you leave 10% of the pre-approved car loan aside while purchasing the vehicle, you can use it to settle fees and taxes.
Increase the size of the dealership pool
When you have a pre-approved car loan, you have the luxury of selecting from a huge pool of dealerships. If you don’t like what one dealership has to offer, you can always visit another one.
Stronger position to negotiate
Another great advantage of pre-approved car loans is that it gives you a lot of power during negotiations. When talking to the salespeople in dealerships, they will ask you about the monthly payments. Depending on your answer, they will change the package by adding or subtracting fees, which aren’t related to the vehicle’s price. With pre-approved car loans, you can say that you are paying in cash, allowing you to avoid this sales tactic completely.
These are three reasons why you should get pre-approved for your car loan before you go shopping!