10 Reasons Why You Should Get Pre-Approved Before Heading to the Dealership
Securing a pre-approved loan before you begin shopping for a vehicle can help you enter a dealership armed with knowledge, confidence, and an increased focus on the vehicle selection process. In addition to laying the foundation for a more efficient purchasing process, being pre-approved can help you negotiate a more attractive price and even impact the way sales personnel interact with you. Below are ten reasons why you should get pre-approved before heading to the dealership.
1) You’ll know exactly how much money you can afford to spend.
One of the main advantages of being pre-approved is an enhanced knowledge of your budgetary parameters. You can enter the dealership mentally prepared with a clear cut idea of your target price range.
2) You’ll save time.
Securing pre-approval before visiting a dealership enables you to reduce the total amount of time spent at the car dealership. Many pre-approval applications can be completed online, making the pre-approval process even faster and more convenient for shoppers.
3) You can quickly eliminate vehicles that exceed your budget.
Heading to the dealership with a clear idea of your budgetary limits enables you to avoid the disappointment that accompanies falling in love with a car that you can’t afford. Pre-approval helps you gravitate toward vehicles in the price range that you can afford.
4) Sales staff will treat you as a more serious buyer.
Research indicates that roughly one-half of vehicle shoppers plan to take the initiative to seek pre-approval from a bank, credit union, or online vehicle financing company. By entering the dealership door armed with a pre-approval note, sales personnel are more likely to treat you as a serious buyer.
5) You’ll have time to improve your credit if necessary.
Seeking pre-approval before heading to the dealership enables consumers with poor credit to avoid the embarrassing and disappointing experience of being denied for a loan after falling in love with a vehicle.
6) Fewer parties have access to your personal information.
Auto dealerships often use third parties to handle financing. Consumers who choose not to seek pre-approval and instead use dealer financing must be prepared for their personal information to funnel into the hands of the dealer and third party lenders alike. Seeking pre-approval through your bank or credit union prevents this.
7) You can enter the dealership with increased confidence.
Receiving a pre-approved auto loan provides you with the confidence you need to actively participate in negotiations with sales staff. The buying process is also typically more enjoyable for shoppers who know that they are pre-approved for a loan.
8) You can use your pre-approved rate as an excuse to avoid costly add-ons.
Sales representatives are often trained to upsell car shoppers or coax them into purchasing optional features that are often not necessary. By knowing your purchasing limits in advance, you have a built-in excuse to steer clear of costly add-ons.
9) You can avoid sales tactics that focus on monthly payments only.
Some sales representatives are trained to ask customers how much they would like to spend each month in an effort to distract customers from the more important variable: the total purchase price. Pre-approval helps shoppers zero in on the total purchase price as opposed to monthly payments.
10) You’ll be able to focus exclusively on finding the car that best meets your needs.
With the task of being pre-approved completed, you can devote your undivided attention to evaluating vehicle options. This will help ensure that you choose the vehicle that’s the best match for your unique needs and budget.
Clearly, there are many benefits that accompany pre-approval. Entering a dealership armed with pre-approval status enables you to save valuable time and negotiate with more confidence. By seeking pre-approval before going into a dealership, you can experience a more productive, enjoyable vehicle shopping experience.