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.

Here’s why:

1. You’ll get a very clear idea of how much you can borrow and can then refine your search based on that figure.
2. Knowing your upper limit can really help when the time comes to negotiate with a seller or dealer.
3. You will be able to avoid any dealer upsells as you understand what you can spend.
4. 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.