How to get car loan pre-approval
Want the upper hand at the car dealership? Then get your car finance in place before you start shopping around. Here’s everything you need to know about the car loan pre-approval process.
What is car loan pre-approval?
Car loan pre-approval is when a lender agrees in principle to lend you money for a new car before you buy it. While it’s not a requirement for car finance, pre-approval can speed up the process and save you a lot of money. What’s not to like?
How does a pre-approval car loan work?
During the car loan pre-approval process, a lender will assess your financial circumstances and borrowing power. If they like what they see, they’ll give you a conditional approval with estimated terms such as the interest rate and maximum amount you can borrow. You can then use this information to narrow your search and drive a hard bargain at the dealership.
Why get pre-approved before going to a dealership?
One of the biggest benefits of car loan pre-approval is you can walk into the dealership full of confidence. You know exactly what your budget is so can avoid any hard sales tactics while strengthening your negotiating position.
How to get pre-approved for car finance
Getting pre-approved for a car loan shouldn’t be a long-winded or stressful process. At National Loans, all you need to do is:
- Work out how much you can afford to borrow using our car loan calculator
- Fill in this online form to arrange a call-back from one of our expert team. They’ll ask you some questions and run a credit check. Once that comes through, so will your pre-approval.
Simple, right?
How long does car loan pre-approval take?
You can get pre-approved for a car loan in as little as one hour at National Loans. The best bit? Having pre-approval in place makes it easier to get final approval once you’ve found your new set of wheels.
Does pre-approval guarantee a car loan?
No, pre-approval isn’t an iron-clad guarantee your car loan will come through – though it does make it more likely. That’s because it’s a conditional approval based on the information you’ve already supplied. To get unconditional approval, you need to provide all the required documentation so a final credit check can be done.
What are the benefits of car loan pre-approval?
Car loan pre-approval comes with some pretty big advantages:
- Gives you a good idea of how much you can borrow so you can set a realistic budget
- Strengthens your hand when you’re negotiating with the dealer
- Helps you avoid upselling or any other hard sales tactics at the dealership
- Comes without an upfront cost – so you won’t lose should you subsequently decide to pull out
That said, pre-approval does involve a credit check which can impact your credit score. As a result, you don’t want to make too many pre-approval applications in a short amount of time.
Rather, work with an experienced car loan broker like National Loans. We’ll match you to the right lender the first time – saving you time, money and potential hits to your credit score.
Get your car loan pre-approval in place before you start shopping around with National Loans. Click here for a free online quote. If you want help, please fill in this online form or contact National Loans on 1300 358 358.
