PRE-APPROVED AUTO LOANS » Current Rates, News & Information

A pre-approved auto loan is different from a conventional auto loan because you are approved for a loan on a car before you ever walk onto the lot. Auto loan pre-approval allows you to enter the dealership knowing what you can afford and what interest rate you will pay. You won’t waste time considering cars that you won’t qualify to buy.

Conventional Auto Loans

The world of pre-approved auto loans may seem confusing if you aren’t familiar with how they work. The truth is, they can relieve a lot of the stress involved in purchasing a car. If you’re planning to buy a car and think pre-approved auto financing may be the way to go, evaluate the pros and cons of obtaining approval for a loan before shopping for your vehicle over a conventional auto loan:

Pros of Pre-Approved Auto Loans

There are many benefits of finding a pre-approved auto loan online rather than at a local bank or car dealership. Before you agree to auto loan pre-approval from a lender, do some online research to be sure you’re really getting the best deal you can.

Variety of Auto Loan Options

Getting a pre-approved auto loan can make the process of buying a car much easier and can even help you obtain a lower interest rate on your loan. However, if you’re not sure you can find better car loan interest rates by obtaining auto loan pre-approval, consider the following answers to common questions you may still have:

How Are Pre-Approved Auto Loan Rates Determined?

You can find a pre-approved auto loan just about anywhere that offers conventional car loans. You may obtain pre-approved auto financing through banks and credit unions, dealerships and online. Depending on your personal finances and specific needs, any of these options have potential advantages.

Pre-Approved Auto Loans from Financial Institutions

Sometimes the thought of financing a car can make your stomach turn because you dread trying to work out a loan deal with the car dealer. Car salesmen talk fast and can easily have your head spinning in so much confusion that you walk away with a shiny new car you really can’t afford, because they worked out a “great deal” on payments.

One way to avoid the fast talking of a car dealer is to walk in with a pre-approved auto loan. By taking this route, you can be in charge of the car you purchase without worrying about whether you’ve just signed your soul over to the devil (or in this case, the dealer).

Getting pre-approved for an auto loan is a great way to finance a car, but if you’ve never taken part in this process, you may want to know the steps you should take to get started. The good news is that this is a process that many car buyers take part in on a regular basis, so it’s not hard for you to get in on the action. If you take on these simple steps, you’ll have secured your pre-approved loan in no time.

Step #1: Check Your Credit

It’s time to get out there and buy the car of your dreams, but you’re trying to figure whether the rumors of getting a pre-approved auto loan is really a better route to take. Most people would agree that it is true. There are a number of reasons that many car buyers seek pre-approved auto loans for their new cars. But there are even great reasons that you might consider seeking one for a year-end model.

Here are a couple of reasons:

Before you set foot into a dealer, you should check your credit score, take any steps to correct it and then comparison shop for the best auto loan rates available. By taking the time to explore such websites as Go Banking Rates, you can easily find and then secure an auto loan for your purchase.

Consumer advocates and financial experts both advise that consumers who are in the process of car shopping need to treat the act of buying a car and securing an auto loan as two completely separate transactions. The bottom line is, by doing the advance legwork to secure an auto loan before going to the dealer, you will not be bullied into using their costly financing and will have more negotiating power regarding the actual sales price of the car in question. Your car loan rates will most certainly be lower by securing it before a car purchase.

Acquiring auto loans has evolved into a relatively simple process with the advent of online applications. Once upon a time, financing a vehicle meant sitting at a car dealership, possibly for hours, hoping that once the process is complete, you have been approved. But now, sitting behind a computer for just a few minutes can get the job done. To see just how simple it is, let’s look at the typical process of applying for a loan over the internet.

Starting the Process