Financing a used car is comparatively more difficult than a new one as the interest is high and also the financer looks at various parameters before approving the loan. Getting your loan approved before finalizing the car has multiple benefits.
Enclosed are a few benefits listed by CarDekho to help you go for a pre-approved used cars loan.
Faster approval: Having the loan approved in advance will save you processing time when you go to buy the vehicle. Additionally, you get to know your overall loan eligibility based on your budget. This helps you shortlist more cars that meet your eligibility before finalizing one.
Shop like a cash buyer: When you have a pre-approved loan, you can shop for a vehicle based on the purchase price, which is the most important factor. This may also help you with the added benefit from the seller who can offer to close the deal much faster, saving your time and effort.
Understand the costs: Your expenses are transparent when you’re in charge of financing. There’s no fuzzy math where you have to evaluate optional features based on a monthly payment for the next five or seven years. You either pay more for the car or you don’t. You’re in control.
Buy whenever you are ready: If you’ve gone through the pre-approval process, you can buy it whenever you’re ready. If you go for loan approval later, there can be some last-minute hold-ups that can delay the purchase. But if you have already done the processes, you can shop and buy on the same day, if you want.
Price negotiations: You never know what kind of dealers you are going to deal with while buying your car, so having a pre-approval letter improves your chances of negotiating on what matters the most i.e the car’s price. Dealers sometimes try to divert your attention on the monthly payment by which they aim to adjust other parts of the deal. When you go in with a pre-approved auto loan, the monthly payment is not a concern for the dealer. There are no games to play.
