Most people don’t like uncertainty. They like to walk into a situation knowing what to expect. If you get a preapproved car loan, you can walk into just about any dealership armed with the knowledge that you already have the financing you need to buy any car in your price range. That’s a great feeling — especially if you’ve ever been turned down for financing in the past.
It used to be so simple. A car shopper would decide on a make and model, go to the dealership and pick out a color, then sit and sweat while the F&I guys decided whether to offer financing. They would run a potential buyer’s credit under a microscope, call references to see what others think about a person’s creditworthiness, and even call an employer to see whether the person is in danger of losing a job. Most people felt embarrassed to be put under so much scrutiny — especially when others are involved. But that’s not how it has to be.
Today, it’s much easier to get a preapproved car loan before you even pick out your car. By getting approved for financing first, you know exactly how much car or truck you can afford, and you know it before you even head out the door to shop. You’ll still have to endure some scrutiny by the lender, but the stress will be much lower because you’re ahead of the game at this point. The clock isn’t ticking, and you don’t have a bunch of people looking over your shoulder while you wait. And you can always say “No, thank you,” and walk away from the transaction. There’s no pressure.
So how do you actually find a preapproved car loan? The easiest place is to go online. Find a reputable eloan provider and fill out a credit application. They’ll still ask you for the same information — your personal data, your employment history, your credit history — but you’ll provide it from the relative anonymity of your home or office. If you’re turned down by this lender, you can simply find another lender that will offer you a preapproved car loan. Once you’re approved at one company, you can apply elsewhere and compare offers, or go out and begin shopping for the vehicle you need.
There’s no reason to subject yourself to the stress of finding financing after you’ve found the car of your dreams. Switch things around — get your financing taken care of first — and your stress levels will go way down. Once you have your preapproved car loan, you’ll be able to pick out your next car with confidence and drive home happy.Written by: