Buying a car is a major event and should be lots of fun. The freedom, flexibility and good feeling of buying a car can really make life a lot easier. However what can make life a lot harder is to go through the motions of shopping for a car, finding the car you love such as 2017 nissan rogue and then finding out you have been turned down for a loan. Here are a few reasons why it is best to get pre-approved for a car loan.
Car Dealer Loans
Most people can tell you that car dealer loans tend to have some pretty high interest rates. As well all car dealer loans are based on accepted credit which means they will do a thorough credit check before you can proceed. This is fine if you know your credit is stellar and you are working in a secure job. However some people who have never applied for a loan before are often surprised when they are not accepted because they haven’t yet built up a credit rating of any kind. Working with a car loan company for a pre-approved loan will make it easier to buy your car and drive it off the lot without delays or disappointments.
Many people also do not realize that some car dealerships and even banks will offer you a loan you really shouldn’t be given. The reason? They can get more interest and sell you a higher priced car. When you apply for a pre-approved car loan you will be given an amount of money you can afford realistically to suit your current budget. Yes, this is not as fun as buying the car of your dreams. However you will know you won’t get in over your head and wind up losing the car because you can’t meet your payments.
When you apply for a pre-approved loan with a car loan company they will provide you with a number of offers with various interest rates and agreements. This allows you to get the best terms and best interest rates. A car dealership or bank will have a love it leave it offer which might cost you more money in the long run.
You will not be able to get a loan from a car dealership or bank with bad credit. However when you pre-arrange financing with a company that specialises in bad credit car finance, they will negotiate on your behalf to find the best possible options despite bad credit. This can be a real weight off your shoulders, especially if you depend on a car to get you to and from work everyday. A pre-approved car loan will work with many financial institutions and find someone who is willing to provide you with the financing you need even if you have had some bad luck in the past.
Last but not least you will usually receive an answer instantly when dealing with a car financing company for pre-approval. You will know how much you can afford and have the money ready once you find your dream car.