Purchasing a car can be quite a costly, but a necessary, thing to do which is also why many people decide to get an auto loan instead to help shoulder the financial burden. When heading to your car dealership with the intent of taking out the said loan, you often have very little negotiating power with the salesperson. Oftentimes your credit will be analysed over and over again just to get the best car loan.
But the question still remains: “Are the terms this dealership is offering me the best financing that I can get today?”
Since a car is quite an essential purchase to make, you should spend time to do your research beforehand, especially with regards to your financing options. Getting a finance pre-approval is the smarter choice than heading to a dealership and letting them figure this out by themselves.
What is Finance Pre-Approval?
In essence, finance pre-approval means that you can get approved by your lender to borrow a certain amount of money when buying a new car – instead of doing it the other way around.
There are times when a lender may even provide you with a coupon or check on the pre-approval so you can bring this to a dealership and submit it to them just like you would with cash.
Oftentimes, you can bring the pre-approval wherever you plan to buy a car, giving you the flexibility you need when you shop around.
Why Should I Get Finance Pre-Approval?
There are many benefits in getting a loan pre-approval ready before you go to a dealership. Here are our top 5 reasons why.
1. You Get to Skip the Dealership Financing Discussions
When your finances are ready beforehand, it’s possible to inform your dealer about this early in the negotiation process. Doing so lets you focus on the final pricing without the dealership having to bring about all of their sales tactics in the equation – usually to let you pay more in the end.
2. You Can Avoid Spending More Than You Can
Since the financial numbers have all been analysed and written down, you know how much you can spend and will have a margin you can stick to – helping you throughout the purchasing process. Even as early as doing your online research, you already have a general idea of the amount you can afford until you get to the negotiation stage with your preferred dealer.
3. You Have a Way to Bargain with Your Dealer
With pre-approved financing at the ready, your dealership will take you more seriously as a buyer which can then work in your favour as soon as you begin negotiating. You can end up getting some valuable extras like window tinting, accessories, etc.), a better end price or even both.
4. You Have Peace of Mind from the Beginning
By knowing how much you can spend from the start, you will have the peace of mind knowing what you can afford. This also means that you don’t need to worry about dealing with this, later on, allowing you to focus your energy on finding the right vehicle for your needs.
5. You Won’t Be Forced Into Anything
Finally, a pre-approval is a smart choice before you can always switch to a dealer that has a better offer if the first one doesn’t work out for you. Keep in mind that a pre-approval means that you aren’t locked down with any deal.
Get Your Finance Pre-Approval from Us
Now that you’ve read our 5 reasons why getting finance pre-approval is a smart choice, then why not get things started? We at Yes Loans can help find the best financing that you’re looking for. Contact us today to learn more!