Why get Pre-Approved for your Car Loan

Unless you have the funds to pay for a vehicle with cash, you’ll need to secure financing (or a lease) whenever you purchase a new car. While this can be done after you’ve picked out a car at a dealership, there are a number of benefits to getting your loan pre-approved beforehand.
Here are a few of those benefits:
You can set a more realistic budget
Few things are more disappointing than picking out a vehicle and finding out you can’t afford it.
By getting pre-approved for a car loan, you can figure out your budget before you walk into a dealership, giving you a much better idea of how much you can spend on a new vehicle.  Not only will this make you a more educated buyer, but it will also speed up the car-buying process, as you won’t have to waste time looking for something out of your price range.
Removes stress
If your credit history isn’t the greatest, you could be facing the prospect of being rejected for a loan. This can be a very uncomfortable feeling for some people and can create a large amount of stress and worry throughout the car-buying process.
Getting pre-approved can help to reduce any stress considerably – as you’ll know up front what you qualify for – making your experience much more positive.
Saves time
While it depends on the person, some car buyers actually spend more time in the finance office than they do picking out a vehicle.
If you’re someone who doesn’t have the time to spend a half or even full day at the dealership, getting your loan pre-approved can speed things up considerably.  It could also allow you to spend the proper amount of time inspecting your vehicle before driving it off the lot.
Either way, the car-buying process can be much quicker if you get your loan secured ahead of time.
You don’t have to wait for approval
While most financial institutions have sped up their processes in recent years, you typically still need to wait a day or two to get your loan approved. However, this is assuming that you’ve provided the correct information. If not, the approval process can be much longer and can add to the stress and uncertainty.
If you do it all ahead of time, you won’t have to worry about any of this.
Simplifies the car-buying process
If you’re someone who tends to get overwhelmed with numbers and paperwork, you could be doing yourself a big favour by getting pre-approved for a loan. By getting the hard stuff out of the way ahead of time, all you’ll need to worry about is the car itself when you walk into the dealership.
Happy shopping!