Some people wonder why it’s important to prequalify for auto loan financing before beginning the process of purchasing a vehicle. It’s a valid question, and one that even seasoned car shoppers sometimes ask.
Consider a routine trip to the grocery store. You might just need a gallon of milk or a loaf of bread, or you might need to buy several hundred dollars worth of groceries. But if you went to the grocery store, would you ever go out and intentionally leave your wallet at home? It’s a ridiculous notion, but heading out to shop for a vehicle without first having a lender that is willing to qualify you for a loan is like going to the grocery store without your wallet. Sure, they have lots of inventory available, lots of choices to make. But if you don’t know beforehand that you’re able to pay for what you want or need, how successful do you think you’ll be?
Car shopping generally requires two parties. There’s the dealer, which carries new or used vehicles (or both). Then, unless you’re going to whip out your checkbook and pay for the whole vehicle, on the spot, you’ll need a lender who will underwrite your purchase. Basically, the lender buys the vehicle, paying for the whole thing, and you get to drive the car. You pay the lender back in installments, paying interest on top of the asking price of the vehicle to compensate the lender for the act of lending you the money. It’s a great system, but one that some consumers ignore as they begin the process of shopping for a vehicle.
So now that you know why you should prequalify for auto loan underwriting before you shop, the next important thing is to find out how to do it. Luckily, prequalifying is easy — most people can take care of it in minutes from their computer or even the browser on their smartphone. RoadLoans.com offers one of the easiest processes in the auto loan industry. Just fill out our online credit application and you’ll know almost instantly whether you’ve been approved. We’ll even recommend a few dealers to work with. Then, when you do head out to go shopping for that car, truck, van or SUV you need, you know you’ll what your price range is, and you’ll know walking onto the dealer’s lot that you actually have the means to pay for the vehicle.
If you’re in the market for your next vehicle, make sure you prequalify for auto loan financing before you head out. It’ll make the process go much more smoothly!Written by: