Benefits of Prequalifying

If you are in the market for a new automobile, one of the things that you should consider doing before you are ready to buy is to get prequalified for an auto loan. There are many different ways that you can go about getting prequalified for a loan, including working with your bank or credit union or prequalifying for a loan directly with a dealership, such as us at Kevin Grover Buick GMC. When you hear this, you may find yourself wondering what the benefits are of getting prequalified for an auto loan. Read on to learn about some of these benefits.

Taking the Time to Prequalify Allows You to Shop for the Best Loan and Rates

One of the benefits of prequalifying for an auto loan is that you can shop around for the best rates and loans for yourself. When people make a fast decision to get a car, they often turn to the dealership for financing. While this may be good for some people, not everyone gets the best rates or loans directly from a dealership. Depending on your credit score and relationship with banks and credit unions, you may get a better rate somewhere else. When you think about getting prequalified for a loan prior to purchasing a car, you give yourself the time and opportunity to do your research on auto loans and find the one that is best suited for you.

Prequalifying Helps You Determine If You Will Get Approved for a Loan

If you have poor credit, no established credit, and/or a low income, you may be wondering if you can even get approved for an automobile loan. People in this position are leery of going to a car lot and shopping for a car when they have doubts about their ability to get an auto loan. Prequalifying for a loan is one of the best ways to find out if you can even get approved for a loan before you even step foot on a car lot.

Prequalifying Allows You to See How Much You Qualify For

In addition to finding out if you can get approved for a loan, prequalifying for a car loan helps you to learn how much you can qualify for. In turn, you can use this information to learn more about how much your monthly payments will be, helping you to determine how much car you can afford. Learning how much you can get approved for can also influence what types of cars you decide to look at, as you will only be looking at cars that fit within your budget.

Prequalifying Gives You Power When Negotiating with a Dealership

One of the lesser-known benefits of prequalifying for an auto loan is that having your paperwork in hand gives you power when you go to negotiate with a dealership. Many dealerships treat an in-hand preapproval the same as they would a cash purchase. They know your financing is in order and that you are already qualified to get the car you are looking at. This gives you some leverage, as the dealership does not have to try to approve you for a car or hope that you get approved for the price of the car you are looking at.

Prequalifying Can Make the Buying Process Faster

The final benefit associated with getting prequalified for an auto loan is that prequalifying can help to make the buying process faster. When you are prequalified for a loan, the lender has already run your credit, knows your income, and has determined how much you can afford. Anyone who has bought a car at a dealership knows that the process of buying the car can take several hours. Most of this time is spent working with lenders to get you approved for the loan. When you come into the dealership preapproved, you can leave the dealership in your new car much faster, making the buying process faster and easier.

Getting prequalified for an auto loan has many benefits. You can shop around for the best loan and rates for you, ensure you will qualify for a loan, learn how much you will qualify for, use your prequalification to negotiate with a dealership, and potentially get into your new car faster. If you are looking to get prequalified for an auto loan, Kevin Grover Buick GMC makes the process easy. You can apply for financing directly on our website and get a decision quickly. Visit our website today to learn more about getting approved for an auto loan through our website or to look at our current selection of available vehicles.