Why pre approved car loans can be better than auto loan from a bank/credit unions/online lenders/car dealerships
Being Pre approved for an auto loan
Admittedly, car financing plays an important part in a successful car purchase plan. And what if you can take care of this important part even before attempting to strike an auto deal? If you can take care of your auto finance much before you set foot in car dealerships, you can negotiate the sticker prices in your favor. Such customers do not have to be afraid or hesitate in walking out if their reasonable requests are not being met. Prior loan shopping is an opportunity to bring in the best interest rates to work for you.
Pre approved car loans make for peace of mind and a great car buying experience. Car buyers aware of their rates, budget limit and length of their auto loan can close a much better auto deal at their local car dealerships than other customers. If you can decide how much car you want and how much you are willing to pay for it then pre approved car loans are for you. Car buyers getting a better deal can return a prior approved check by paying any fees involved if any.
Potential car buyers should be careful in applying for credit repeatedly. This may not have a negative effect in a short period of time. They should keep auto loan applications within 30 days. A cluster of applications are treated as one by credit bureaus. Service providers like E-Loan and Clearlane pull your score only once for working with multiple lenders and financial institutions.
Car financing industry nationwide has grown at a much faster pace due to increasing demands over the years. Potential car buyers have a tough time knowing which lenders and dealers to work with for their typical financial situation. However, the technological development of the web, easy access to the internet and online assessment tools can make the task of auto finance simple and quick.
Well-known names in auto finance are Bank of America, Capital One, Chase, and Wells Fargo. Other ‘captive’ car financing options which are big names too such as Ford Motor Credit and Toyota Financial Services associated with manufacturers.
Consider a few pros and cons for each type of car financing resource that will give you a clearer idea.
Known for being specific and conservative, banks are good for borrowers having above reproach credit scores. Bank market is competitive and some do make exceptions for customers with marginal credit. Banks plus points are in data security, competitive rates and getting more personal information of their customers. However, they prevent customers with lower scores from applying and charge higher fees.
Second only to banks, nonprofit credit unions have lower operating costs. They make loans to members as well as general public. They give benefits of lower rates, easier application, provide better services and contribute to social upliftment. On the negative side it could be difficult to become a member or qualify. They do have fees albeit lower. They do not have many branches.