- Helps you set a realistic budget – when you go car shopping, you already know how much you can borrow and what the regular repayment will be.
- Get a cheaper interest rate – if you shop around and get pre-approved in advance, you will be able to compare and get the best value finance.
- Strengthen your negotiating position – with your pre-approval in hand, you’re in a stronger position to haggle.
- No obligation – there is no obligation to proceed should your circumstances change and there is no out of pocket cost incurred. Only if you proceed to get a loan will you be charged a car loan application fee.
Some things to consider:
- Each time you apply for pre-approval a credit check is conducted, so if you get pre-approvals from multiple lenders it can affect your credit score. To avoid this, shop around first and only get pre-approval from your preferred lender.
- It is only valid for a limited time.