It is very common to hear about loan pre-approvals in the mortgage industry, but many car shoppers may not be aware of a car loan pre-approval.
So what exactly is a car loan pre-approval and how can it benefit the average car shopper?
A car loan pre-approval is the process of working directly with a lender or auto dealer that get you pre approved before you enter negotiations for a specific vehicle. During the pre approval process you’ll very things like income, where you work, how long you’ve been employed, length of time at your current address, and so on. During the process you can look at a range for your interest, payments, and down payment amount required to complete the transaction. Typically, a lender or auto dealer will give you a pre approval letter for a specified amount of money you can use at the dealership or a dealer of your choice within a specified period of time.
With a car loan pre-approval you know exactly how car you can afford and you have a better negotiating position when you start talking with a local car dealer or dealership hundreds of miles from where you live. Truth be told, most car dealers would prefer to work with a car shopper that is pre-approved vs. a car shopper just looking for the best deal or kicking tires. When you have a pre approval letter for your car loan, the sales person knows you are ready to buy and will be more likely to negotiate a better deal with you.
Alpha Auto Credit works with lenders and dealers nation-wide. We can help facilitate your car loan pre-approval. Click the button below to get started! or check the pre approval check box on our finance approval form.
Getting a car loan pre-approval can save you time sitting at the dealership or looking at vehicles that you cannot realistically afford.