If you’re in the market for a new car but want to get your finances settled first, getting a pre-approved car loan could be a good idea. Read on to learn more about what it is and how it can help you. 

What is a pre-approved car loan? 

A pre-approved car loan is the lender agreeing in principle to lend you money for a car purchase. The pre-approved car loan will tell you how much you could potentially borrow from the lender. This type of loan only gives you conditional approval and is valid for 30 days to 60 days. 

Receiving a pre-approved car loan is not a guarantee that you’ll be approved for a car loan. However, it may make the car loan application process easier and quicker. 

Reasons to get a pre-approved car loan 

A pre-approved car loan gives buyers plenty of advantages such as: 

  • It makes it easy to set a budget. With a pre-approved car loan, you’ll have a better idea of the amount the lender will let you borrow. You don’t have to go over your finances to figure out what price range you can afford. 

  • Find the right car sooner. Because you have a set budget, finding the ideal car becomes much simpler. You'll have a budget in mind so you can narrow down your options while searching for the perfect vehicle. 

  • You get more bargaining power while you shop. A pre-approved car loan proves to dealerships and car sellers that you’re serious about buying a car. Because you have a pre-approved car loan, some sellers may give you a more favourable deal so they can close the deal quicker. 

  • You won’t be tempted to go over budget. Often, car buyers may be persuaded to spend more than they could afford. But with a pre-approved car loan, you know your limits and how far you can go price-wise. 

  • The car loan application process could go quicker. Avoid the hassle of waiting for car loan approval. A pre-approved car loan could hasten the whole application process because you already have the needed documents. 

Getting a pre-approved loan won’t cost you a cent but it can make purchasing your new asset a whole lot easier. 

How to get pre-approved for a car loan 

You can apply for a car loan pre-approval online. At Aussie Car Loans, our pre-approved car loan application process is simple and streamlined. All you need to do is fill out this form and we’ll get back to you as soon as possible.  

You can also schedule an appointment with one of our expert brokers to learn more about your car finance options. No need to take time out of your day to go to a physical office. Everything can be done over the phone and online for your convenience. 

Get a pre-approved car loan at Aussie Car Loans 

Shop around with confidence with a pre-approved car loan. Simply tell us what type of vehicle you want to purchase, and we’ll find a car loan that fits your needs. Call 1300 889 669 today for more information. 

FAQ 

Can you get pre-approved for a car loan? 

Yes, you can get pre-approved for a car loan. Some lenders offer pre-approval for car loans making it easier for buyers to create a budget and shop for a car. 

Does pre-approval guarantee a car loan? 

No, a pre-approved car loan does not automatically grant the borrower a car loan. Borrowers are still required to formally apply for a car loan. 

Does pre-approval hurt your credit? 

When you apply for a car loan pre-approval, the lender will send a soft inquiry into your credit which does not affect your credit score. 

Is there a downside to getting pre-approved? 

Car loan pre-approvals have a validity period which means you have to act quickly if you want to follow through with your pre-approved loan. It’s also not a guarantee that you’ll get approved for a car loan. 

What does it mean to be conditionally approved for a car loan? 

If you get a conditionally approved car loan, it means you have a good chance of getting approved as long as you meet the lender’s criteria and requirements. 

How long does a pre-approved car loan last? 

Car loan pre-approvals are usually valid for 30 to 60 days. This gives borrowers plenty of time to shop around for their perfect car before applying for a car loan. 

What is a good credit score for a car loan pre-approval? 

A credit score of 600 or higher will give you a higher chance of being approved for car loan pre-approval. Having a lower credit score won’t make it impossible for your car loan to be approved but you may have to pay higher rates or get less favourable terms. 

How many car loan pre-approvals should I get? 

It’s best to seek pre-approval from only one lender. Applying for too many pre-approvals could make lenders cautious and hinder your chances of approval.