The Incredible Benefits of Getting Pre-approved for an Auto Loan
If you’re thinking of buying a new vehicle, you’ve no doubt considered various financing options. Getting pre-approved is a stress-free way of realizing your dream. It makes shopping for a car a more comfortable and more fulfilling process. While most dealers offer pre-approvals, banks and credit unions are more flexible with their financing options.
Advantages of Getting Pre-Approved for a Car Loan
Getting pre-approved gives you more control over the vehicle purchase process. It also gives you a better understanding of your financial position, including:
- How much you can afford to spend on a car
- The monthly installments you’ll pay for various vehicle prices
- Available interest rates
One downside of getting pre-approved by a dealership is you’re restricted to only buying their vehicles. They’re more likely to mark-up their car prices. Dealerships can also convince you to buy one with higher interest rates than you can afford.
Being pre-approved means you can shop as a cash buyer at the dealership. You’re not restricted to a particular seller; you can visit different dealerships for the best possible offer. It also means the credit union has already assessed your credit report and deemed you financially capable.
More Room to Negotiate
Some auto dealers are notorious for always trying to manipulate the price, monthly payments, and interest rates. Others entice you with appealing offers such as 0% financing, only to change the terms after you’ve spent time negotiating. Approaching them with a pre-approved loan removes this possibility because your credit union already outlines the terms
Focus on the Vehicle
Buying a vehicle entails a lot of paperwork and logistics as far as funding is concerned. If you get pre-approved, you don’t have to worry about doing the heavy lifting. Your credit union and dealership will take care of it in the background. This gives you enough time to focus on the car’s features and make sure it’s the right fit for you. It also saves you from having to pay for unnecessary upsells and add-ons. You can do so by insisting on only working with the pre-approved amount and not a dollar more.
Getting Pre-Approved for a Car Loan
Your chances of getting a pre-approved loan increase if you have the following:
- Proof of residence and identity: Such documents include a passport or driver’s license with a clear photo ID, social security number and lease agreement.
- A credit report: The law entitles you to one free credit report annually from TransUnion, Equifax and Experian. Though your lender will still pull it up, knowing beforehand allows you to identify any fixable errors.
- Proof of income: You’re required to provide your gross income, a copy of your latest tax returns, and proof of additional income sources.
If you’re successful, you’ll get your pre-approval in 1 to 5 days. Lenders allow a validity period of up to 60 days. Some dealerships place restrictions on the kinds of vehicles you can purchase. With your pre-approval, you can now shop for a dealership with the most suitable offers.
Ready to Hit the Road with Your Dream Car?
If you’re ready to purchase your new car, Clark County Credit Union is your go-to lender. Our reputation for professionalism, honesty, and customer service is unmatched. Contact us today at a Las Vegas branch, or by phone 702-228-2228 for more information on pre-approved auto loans.