Getting pre-approved before you start shopping for your next vehicle has many benefits. Not only does it help you secure the best interest rate possible, it also helps make sure you stay within your budget. In addition, it puts you in a stronger negotiating position at the dealership.
Pre-approval means a lender has provided approval for the total amount that you can spend along with the interest rate and repayment terms for your loan.
Obtain the Best Rate
Consider several financial institutions in order to secure the best possible rate.
Stay Within Budget
Knowing the dollar amount you are approved for means you already know your monthly payment and that it is within your budget.
Shop with Confidence
With pre-approval, you essentially become a “cash buyer,” which means you can focus more on the purchase price of the vehicle and less about the add-ons and extended warranties that dealers often try to add to the sale.
Securing pre-approval can help simplify the car-buying process and increase your negotiating power at the dealership so that you can have greater peace of mind about your purchase.
This article is for general information only and not intended to provide specific advice or recommendations for any individual.