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.