While the car is undoubtedly the star, for most, the financing is just as important in the vehicle-shopping process. One thing you should know about as you begin that journey is preapproval, which means arranging your loan before visiting the dealership. Recommended by the Consumer Financial Protection Bureau, it offers the following strong advantages.
1. Save money
Banks, credit unions, finance companies and online lenders all accept applications for preapproved auto loans, so it’s easy to shop around for the most attractive terms. If approved for a few loans, you can compare the interest rates, loan amounts and financing periods, and choose the best offer.
2. Know your budget
Your preapproved loan amount lets you work out how much you can spend on a car and stay within budget while you shop. You don’t have to use your full amount, and you may want to leave room for sales tax, registration and title fees.
3. Concentrate on the car
You can now focus your efforts on choosing the right car and agreeing on your trade-in value, without the pressure to get credit, too. If the dealer offers you financing, compare it to your preapproval.
4. Negotiate your best deal
When it comes to price, you’re all set to negotiate with the power of a cash buyer and drive away with the best deal on your vehicle.
A quick and easy way to get preapproved
Applying for a preapproved auto loan won’t take long. Online lender RoadLoans enables you to complete a short application in minutes and get a decision in seconds. Once you’ve selected your loan type, we just ask for some basic pieces of information including your name and address, contact details and date of birth, along with Social Security number and income.
We also accept applications from consumers with a broad range of credit profiles, so don’t worry if your credit is poor.* To help, we offer the opportunity to apply with a co-applicant and do our best to work with those who need a low or even no-money-down requirement.
Whatever your credit position, and whether you’re looking to buy new or preowned, preapproval could streamline your car-buying process and help you make the perfect purchase.
Apply for a car loan online and get an instant decision.
* “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.