Shopping for a car is an exciting prospect. However, a car buyer has a lot to consider. These include the vehicle’s price, features, benefits, among others. Another crucial factor required in the car buying process is making sound financial decisions.
While it’s easy for many people to get carried away or become overwhelmed by the whole car shopping experience, there’s one important thing you shouldn’t overlook, and that’s getting pre-approved for an auto loan.
In case you didn’t know, there are many benefits you can enjoy getting pre-approved for your car loan. Not only will you save a lot of time, effort, but you also gain valuable information, as well as a better position to negotiate for a good deal.
Moreover, when you get pre-approved, there are no strings attached. You are not obligated to do business with a lender that pre-approves you if you choose to keep your options open. So, before you head to the dealership, you can apply online for a car loan and see if you get pre-approved.
So, what exactly do you get from getting pre-approved? First, you can avoid falling head over heels with a car that’s way over your price range. Unless you have saved a small fortune, you’ll want to choose a car that won’t break your budget.
Second, you’ll be aware of crucial details like how much money you’ll shell out for your monthly car payments, as well as interest rates. Remember that you’re committing to pay for your new set of wheels for the next three to five years. That’s why you need to fully understand the costs, so you can stay on top of your car financing.
Third, you alleviate the pressure. No one wants to be bamboozled by a smooth-talking car salesperson. When you have a clear idea of how much you can afford, it’s easier to create and stick to your car budget. When you shop for a car loan, you can crunch the numbers yourself and look for cars that are within your price range.
Next, your car shopping experience becomes less complicated. When you get pre-approved, car dealers will treat you like a cash buyer. This means you can negotiate for a reasonable price for your car instead of getting all wrapped up with the car loan itself.
When you have that ballpark range of your next car, you’ll have the freedom to take your business anywhere. With your pre-approved car loan, it won’t be difficult to say no and walk away from any dealership if you think that you are not getting the best deal.
Once you head to the dealership, you’ll be more confident to ask for a reasonable price range because you are pre-approved for a car loan. Most of the time, car dealers are willing to work with you and want to avoid losing out on your business.
That’s why it’s important to remember that when you get pre-approved, you have control, especially when you have a stellar credit history. However, keep an open mind when auto dealers try to provide financing options. It may be possible that the dealer is just attempting to give an offer that is better than your pre-approved car loan.
So, at least, hear them out and make sure that you check the fine print before they take you over the line. The car buying process is not easy, but if you understand what you’re getting into, you can focus on what will work for your financial situation.
These are just some of the compelling reasons to get pre-approved for a car loan. If you have been pre-approved for a car loan recently, we’d love to hear from you. How was your experience? Please share your tips and let us your thoughts know by leaving a comment.
I set this blog up a couple of years ago now as a way to share my experience that I’ve gained through my school education and my real life education. It sounds geeky, but the economy is something that I’m really passionate about and it’s something that I am actually pretty talented in, so it’s great for me to share these experiences with those that may be struggling a little bit with finance and figuring out how to navigate the economy.