What Is A Pre-approved Auto Loan?

If you are looking for a good deal on a car, you may want to go and get a pre-approved loan. It can save you time and money with these types of auto loans, mainly because the car dealers will be happy to see you already have cash on hand. Here are the important things you need to know about a pre-approved auto loans.
A pre-approve auto loan means you are qualified for a specific amount of loan even before you start shopping for your car. You exactly know how much you can spend and how much the interest rate is. It is pretty much the same with a pre-approved mortgage when buying a house.

It is good to know in advance how much of an auto loan you are going to get. This will help you save time in searching for a car because you will know what you have to work on. In addition, you can also save money by knowing exactly what charges apply immediately.

In pre-approved loans you will be given a blank check with a certain credit limit after filling-out the application. With a check in hand you can already look for the car of your choice.

But before signing anything in your check, it is a good idea to find out the value of the car you plan of buying. Referring to the Internet is the best way to find out the value and asking price of your car. Having a check in your pocket may be a great deal but you have to stay informed on the value of car you want.

By getting pre-approved for a car loan, you can allow yourself a great deal of flexibility and savings before you start to shop. Furthermore pre-approval puts you in the driver’s seat by excluding the pressure and the expense of dealer financing. It can also help you avoid having to come up with a large down payments and sacrifice on dealer rebates or discounts. The best thing about this is you know exactly how much you can spend even before you visit the dealer.