What are the Benefits of Getting Pre-Approved for a Car Loan?
We all like to be validated. Whether that validation comes from someone telling you that you’re a good listener, or a great athlete, or your opinion on comic-book movies is remarkably spot-on, it feels good to have someone on our side. And while car loans can seem a far cry from comparing Batman to Superman, getting one in advance of shopping for a car does validate you. It means you’re a “cash buyer” who has a certain amount to spend at a dealership, and the loaner believes in you enough to approve you for it.
With that in mind, we want to give you four benefits to getting pre-approved for a car loan, including having leverage in negotiations. Read on for more about these benefits!
Car Loan Pre-Approval: Benefits
Keeps You Focused on the Car, Not the Finances
If you have a pre-approved loan, you won’t need to worry about the financial logistics when you’re at the dealership, since you essentially have “cash in hand” to get a car. This means you can really hone in on what features you like about a certain vehicle.
Can Save You Money on the Interest Rate
Without pre-approval, you may not be able to get the best financing for the automobile you like. Which means a couple percent additional in the interest rate may be worked into your loan you get at the dealer, giving you a steeper long-term cost.
Gives You a Better Idea of Your Budget
Once you know you have pre-approval – at what amount and at what interest rate – then you can decide what monthly budget you will be able to use on your new vehicle.
Gives You More Leverage
If the salesperson you’re working with on the lot asks you what kind of payment you can handle per month, then you’re already facing a deficit in the negotiations, because the salesperson will likely try to find a car that fits that monthly amount. If you’re pre-approved, you know how much you have to work with, and you set a price you can pay, not a monthly amount.
We Have the Cars, for Less, at Broadway Auto Credit!
We’d love to show you our used vehicle inventory at Broadway Auto Credit, 1626 7th St., Green Bay WI. We have vehicles available for low prices, and for as low as $100 down, and we’re also a short drive from the Appleton Fox Valley area, including Neenah and Menasha. For more information about the cars we have on the lot, call us at (855) 395-2129, check our inventory online or come visit us!