Purchasing a vehicle can be costly, but required, which is why many people opt for an auto loan. When you go to the dealer looking for a car and a car loan, you could have a more difficult time bargaining and have no idea whether the final loan terms are the best you can receive. This is why you should get preapproved for a car loan before you even step inside a dealership.
You’ll Be Less Stressed
People who don’t have a preapproved loan will be worried about their down payment and maximum monthly payment when they walk into the dealership. If you’re preapproved on a car loan, you’ll already know how much you’ll pay. The only thing you’ll have to worry about is bargaining with the dealership to stay at or under your preapproval sum.
You’ll Get a Lower Rate
When it comes to financing a vehicle, being preapproved is always the better choice and it will help you get a lower interest rate on your loan.Without the dealership posing as a middleman and raising the APR, you’ll know you’re getting the car loan rate you deserve.
Dealerships can and always raise their customers’ APRs, but they are unlikely to persuade you to accept the higher APR if you have a lower rate elsewhere. If the dealership wishes to finance your vehicle, they must provide a lower interest rate than your preapproved auto loan.
You’ll Spend Less Time at the Dealership
When you know what car you want and how much you want to pay for it, you’ll cut down the time spent at the dealership. Even more so when you’re not depending on the dealer to find you a loan. When you have a car loan preapproval, you waste less time bargaining and save more time for driving your new car.