Everyone in the process of buying a car dreams of the moment they’ll get to say, ‘I’ll take it’, before driving away with it. Now, imagine seeing the car of your dreams at an amazing price – but because you haven’t sorted out your finance options yet, you can’t secure it then and there. By the time you’ve sorted your car loan out, it’s already been sold to another person – someone who probably took the time to pre-approve their car loan, so they could snatch up their dream car the moment they saw it. If you want to remove disappointment from your car shopping process, you need to get pre-approval on your car loan. Here are few more of its benefits:
Why pre-approve your loan?
Do you know your exact credit rating and credit risk profile? It’s not something most people make a habit of learning about until they need something on credit. It can often surprise people, as you might be eligible for more (or less) than you anticipated. Knowing this figure is important, as it could impact how long your repayment term is and how big of a deposit you’ll need. It will also determine what your price range is, as you can expect to be declined if you attempt to purchase a car at the outer edges or exceed your credit limit.
Advantages to pre-approval of your loan
- Knowing exactly what you can spend will prevent you from being blown over by salespeople trying to trap you into something costlier, giving you much needed buying confidence. This is important when you aren’t confident about your car knowledge and feel vulnerable during the shopping process.
- Having a clear financial outlook could entice a dealer or seller to sweeten your deal with free accessories or a discount, as they see you can afford to make repayments and have secured the finance.
- If you find the car of your dreams at a sale or auction, you can snap it up right away without having to go back and forth with your lender over your application.
There’s nothing more empowering than knowing where you stand financially. Talk to a Simply Finance consultant today to find out how you can secure a pre-approval car loan so that you can land the vehicle of your dreams.