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).
What is a Pre-approved Loan?
A pre-approved loan is one that you secure before you make your way to a car dealership. Whether you visit a credit union, bank, or online financial institution for the fund, taking this route ensures that you have the money to pay for the car you want without having to work through the dealer’s financing company.
What Are the Benefits of Pre-approved Loans?
One of the biggest benefits of pre-approved loans is that you have the opportunity choose the car you want without being persuaded by the dealer’s promise of a great car note. When you’ve already worked out the amount you’re pre-approved for with a separate financial institution, the car dealer has nothing to do with this process. This means, you can haggle with them and maybe even get yourself a better deal on the vehicle. In their eyes, you’re buying the car in cash, so they can’t lose.
Another benefit is that you save tons of time at the dealership. You can visit the dealership already knowing what you want. With very little small talk in the middle of everything, you can name your features, name your price, and get out of there without spending hours working out financing details because it has already been taken care of.
It’s never a bad thing to work out your auto loan agreement before visiting a car lot. So look into a pre-approved auto loan as your financing option.