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:
1. You Have More Negotiating Power. Usually, when you go to a dealer looking for a car with no money already in hand, you are at the mercy of the dealer. They know you want a car, but you don’t have any money to work with; which means you’ll need them to help you find a way to pay for the car. This pretty much flushes your negotiating power down the drain. After they look at your credit score, they can tell you that you qualify for just about anything. And if you don’t know any better, you might just end up paying way more for a car than you had originally intended – or can afford.
However, if you walk in with a pre-approved auto loan, you have a great opportunity to negotiate. You can look at the sticker price, decide if you want it to be lower, and feel the freedom of having check-in-hand when you go to purchase your car. And with it being a year-end model, you’re in an even better position to bargain because they want to sell their inventory before the new year starts.
2. Dealers Are Looking to Make Money. When you go to a dealer with a check already in your hand, dealers are more happy to work with you because they know the car will be paid for in full. And this makes sense because getting a big lump sum of money today is better than getting little payments throughout the next few years. Also, Dealers want to sell off their inventory so they’re usually more willing to make a deal with you when they know the money is guaranteed. This is especially true of year-end models. And you’ll likely to see rebates that will make you close your car purchasing deal even sooner.
Isn’t it good to know that pre-approved auto loans can help save you tons of cash off year-end models? Start planning now so that when the time comes, you’ll be ready to snag that car you’ve been eyeing at.