We often recommend car loan preapproval to clients. It’s an extra step in an already complicated process but it has many more pros than cons. That’s what we’ll be discussing today. The importance of auto loan preapproval and why you should use it.
Out Campbellville auto loan team takes it from here.
Why Get Car Loan Preapproval?
There are a few good reasons to get auto loan preapproval. A couple of them are purely practical while the other is emotional.
Tells you what you can borrow
Preapproval takes some basic information and predicts whether you could qualify for the amount you want to borrow. If it all looks good, you stand a good chance of being able to borrow that amount. If not, you can adjust the amount until you reach a point where you would qualify.
Tells you how much down payment you might need
If you cannot qualify for the amount you want, you should be able to identify the shortfall easily and then make it up with a trade in or down payment. Either way, it shows you right away where you need to be and what you’ll need to put down to buy your car.
You’re a qualified buyer
As you know you are likely to get an auto loan, you are a qualified buyer. Many dealerships view customers with preapproval more positively than those without. We aren’t one of them but we have seen it first hand.
You are interested in a car because you went through preapproval. You know how much you can spend because it told you. You stand a good chance of qualifying for a Campbellville auto loan because you passed. All things a dealership likes to see!
It sets your expectations
The emotional answer is about managing your expectations. Most of us are guilty of wanting a champagne lifestyle with lemonade money and preapproval sets that right.
You’ll know how much you can borrow early on. You’ll have your expectation set at an achievable standard right away and this should prevent you falling in love with cars you just cannot afford.
This is an incredibly important aspect of preapproval.
Setting your expectations too high can cause real disappointment. It can even put you off the entire purchase altogether.
Neither of us want that, which is why we recommend preapproval to most of our clients.
How To Get Car Loan Preapproval
Auto loan preapproval is a simple process. Simply fill in this form, give us a few details about yourself and your situation and let us do the rest.
The questions are all simple and not too intrusive. Just enough to give us an accurate picture of your situation so we can provide an equally accurate answer.
You don’t have to go with the lender who preapproved you. You don’t have to accept any terms they offer.
Preapproval doesn’t impact your credit score either. It uses a soft inquiry, which is only visible to you and won’t remain on your report or impact your score. Only the real auto loan application will leave a mark, which is another reason to use one!
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!