Getting a pre-approved car loan is something that we highly recommend before you even think about going to showrooms or dealerships. This initial step will give you a good idea of how much you can borrow. In addition to this, there are many other great reasons to get your car loan pre-approved before you shop for a new car.
1. A pre-approved car loan gives you a budget
With car finance pre-approval, you’ll know the maximum amount you can borrow. This will help you set a budget you can work with and find the best vehicle within this range. Not only will it make your selection process much easier, but having a budget will also prevent you from buying a car that you can’t afford.
2. Greater purchasing power
One of the reasons to get car loan pre-approval is increased buying power. A pre-approval will give confidence to the sellers that you, as a buyer, have the capability to purchase whichever vehicle you are interested in. It puts you in a stronger position to receive better offers from the vendor than the one they normally give without a pre-approved loan.
3. Negotiate with confidence
Along with the improved buying power, you’ll also get better negotiating power with a car loan pre-approval in your pocket. You can bargain for a lower price or more freebies and you will likely get it. Why? The sellers know that you are a sure buyer. So, they will do everything they can to keep you as a customer and close the sale. To do that, they must keep you happy, or you’ll walk away and find a better deal somewhere else.
4. Avoid expensive car finance
Another good reason to opt for a pre-approved car loan is that you’re more likely to get a better deal. When you are already pre-approved, you are unlikely to be swayed to get dealership or seller financing. These car loan products are often more expensive and attract higher interest rates. Instead, you can just stick to your choice of financing where you can save more money on repayments.
5. Get priority from the sellers
Sometimes, sales staff don’t take shoppers seriously because they’re so used to people window shopping with no real intentions to buy. But with a pre-approved car loan to show the sellers, they will take you as a serious buyer and will be keener to assist you.
6. Be ready to bid at auction
Pre-approved car finance is a must if you are buying a vehicle at an auction. Making a bid means you are committed to making a purchase and it would be plain reckless to do so without any source of funding at the ready. If you are armed with pre-approval and the knowledge of your maximum loanable amount, you’ll be able to bid with confidence. Once you become the auction winner, you’ll also be able to proceed with the purchase much more easily.
7. Faster car loan processing
Lastly, having a pre-approved car finance will significantly reduce the overall processing time once you’ve found the right car. Whether you’re purchasing a car for a business or personal needs, a pre-approved loan will help you finalise the deal right away. This will be very helpful, especially if you are working on a tight timeframe for your plans.
Apply For Pre-Approval with Aussie Car Loans
As you can see, getting pre-approved car finance is the way to go if you’re about to purchase a new vehicle (or fleet) either privately or for business. It just makes sense. Aussie Car Loans can help you obtain pre-approved finance in minutes with the lowest possible interest rate. Thanks to our relationships with top lenders in Australia, we can do the hard work for you and source the best finance deal.
Talk to one of our finance experts today. Call 1300 769 999 or fill out our online application form.