Why Should You Get a Preapproved Car Loan and Where to Find One

It helps you plan your money moves

Budgeting before you hit the blacktop is a great plan, and getting a preapproval can help you eliminate guesswork by providing estimates on monthly payments. Don’t forget: When you’re looking at car prices, leave at least a 10% buffer to account for taxes and fees. Use a car affordability calculator to help you plan your purchase, and check out some preapproved car loan rates to give you an idea of what to expect:

*May include an autopay discount

You can defend yourself against dealer markups

*May include an autopay discount

Dealers can inflate your interest to make a profit when you get a car loan through them. With a preapproved car loan, you’ll have an interest rate quote directly from a lender without a middleman marking it up.

You get to act like a “cash buyer” and avoid upsells

Cash buyers often look at total cost rather than monthly payments, giving them the upper hand when negotiating. Similarly, when you have a preapproved auto loan with a set price, it’s much easier to deflect a sales pitch that could up your monthly rate.