Why Getting a Pre-Approved Auto Loan is Important
So you’ve decided to get a new car! Have you decided on your auto loan? Not only should you research the fair value of the vehicle you’re considering, plus shop around and negotiate to get the best price, but you should also shop around for a loan. Shopping around for a car loan doesn’t sound nearly as fun as shopping for an actual car, but it’s essential if you want to avoid getting ripped off.
Getting pre-approved for a car loan is so important because it turns you into a “cash buyer” and you’re in a much stronger negotiating position. When getting pre-approved for a car loan, it pays to shop around, checking interest rates and terms before you settle on a lender.
Visit any Robins Financial branch and ask your representative to prepare financing options, or apply for a loan online today. Know your credit score ahead of time and be aware that the lower your score, the higher the interest rate you’ll have to pay. Typically, the lender will specify the amount you are pre-approved for, including the terms, before you shop for your car.
Some lenders will require the car’s make, model and year before they will pre-approve your loan. The lender must typically also make a final approval of the vehicle you’ve selected before you actually get the loan. Having a pre-approved loan means that you can focus on the total cost of the car when you are at the dealership. This can help you stick to your budget and not succumb to sales pressure to get a car that is more than you can afford. By shopping around, you can take advantage of the best interest rates and terms, which can help to keep the overall cost of your car down in the long run.
When shopping for a car with a pre-approved loan, don’t let the salesperson know about the loan until you have a firm price in place for the car. Since the dealership typically makes money when people sign up through it to make car payments, giving it a way to hide extra costs, salespeople are likely to be less flexible if they know you won’t be going through the dealership for your loan.
Getting pre-approved for an auto loan and shopping at one of our Preferred Dealerships ensures your savings. For information on new car options and pricing check out the NADA website. Be sure to use our Auto Calculators to estimate your loan payments before you decide on your top choices.
Apply for an auto loan with Robins Financial before you shop and you will be armed with the knowledge of your monthly payment and total cost to finance the vehicle of your choice as you shop. Apply online, at one of our branches, or by phone at 478-923-3773 or toll free 800-241-2405.
- Do you want to learn how much your auto loans monthly payment will be? Try using our Auto Loan Monthly Payment Calculator.
- View our Auto Loan Rates to see what rate and term might best suit your financial needs.