Getting a pre-approved loan is something that we highly recommend before you even think about going to showrooms or dealerships. For starters, this step will give you a good idea of how much financiers are willing to lend you. Aside from this, there are many other reasons why getting a pre-approved loan is a good idea. We’ve included a few of these below.
1. It will help you set a budget
With finance pre-approval, you’ll know the maximum amount you can borrow from the lender. 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. Get greater buying power
One of the reasons to get 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 product 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 influence with a 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 financing that will cost you
Another good reason to opt for a pre approved loan is that you’re more likely to get a better deal. When you already have a pre-approved loan, you are unlikely to be swayed to get dealership or seller financing. These 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 just window shopping with no real intentions to buy. But with a pre-approved loan to show the sellers, they will take you as a serious buyer and will be keener to assist you. They will be more enthusiastic to attend to your queries, in the hopes that you’ll make the purchase.
6. Be armed at auctions
A pre-approved loan 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 finance 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 smoothly.
7. Faster loan processing
Lastly, having a pre-approved loan will significantly reduce the overall processing time once you’ve found the right car, truck, or caravan. Whether you’re purchasing for 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.
Get Loan Pre-Approval at 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.