A pre-approval is conditional approval given to you from a lender with estimated terms — such as the amount of money you can borrow, the interest rate and loan term — to finance the purchase of a car. This loan quote makes it easier to estimate the total cost of the loan and to create a budget before you start shopping. It lets dealers know you’re done your homework and you won’t necessarily have to rely on dealer financing. This could give you greater negotiating power which can make the car-buying process less stressful.
Get an idea of how much you can borrow!
Getting preapproved for an auto loan can help you set realistic expectations about what you can afford to spend. The lender gives you a quote for the amount you can borrow and may include the car, title, taxes and additional fees.
You’ll also get an idea of what your interest rate and loan terms will be, so you can calculate your monthly car payment and set your budget. You don’t have to apply for the maximum amount you’re preapproved for.
You can focus on the car!
If you haven’t taken the time to run the numbers before you go to the dealership, it’s easy to get distracted wondering what you’ll be able to afford and how much your monthly payments will be.
You’ll have greater negotiating power.
If you go to the dealership without an auto loan preapproval and find the car of your dreams, it could be tempting to take whatever financing is available to avoid losing out on the car. But if you have a preapproved loan offer, you may be less likely to feel pressured to get dealership financing that may cost you more.
Getting preapproved for a car loan helps you get an understanding about how much you can borrow for a car. It can offer you more flexibility to choose a car dealership and can give you greater negotiating power.
WKFCU will work to get you pre-approved and have your back all the way through the entire process.
Rates as low as 3.49% APR* & 90 Days NO Payment
Fun In the Sun Gift and a Free 3-yr Membership in MYEZCARCare
Partially reprinted from Credit Karma, Inc. https://www.creditkarma.com/auto/i/preapproved-for-car-loan/
(*Annual Percentage Rate. Membership and approved credit required. Some Restrictions Apply. Limited time offer.)
View All Rates
*APR = Annual Percentage Rate
*APY = Annual Percentage Yield
Rates are subject to change without notice
Read Our Newsletter