What are the benefits of a car loan pre-approval?
There are a number of reasons you should consider a car loan pre-approval before you start looking for a new or used vehicle.
- You’ll get a very clear idea of how much you can borrow and can then refine your search based on that figure.
- Knowing your upper limit can really help when the time comes to negotiate with a seller or dealer.
- You will be able to avoid any dealer upsells as you understand what you can spend.
- There are no upfront costs to get a pre-approval and the process doesn’t lock you into purchasing a car.
The main consideration when getting a pre-approval is that it can impact your credit score, so it’s best to only do one when you’re serious about buying.