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Why Should I Prequalify For A Car Loan In Welland?

Why Should I Prequalify For A Car Loan In Welland?

You receive many benefits if you prequalify for a car loan. It is a useful way to find out if you could borrow the amount you want for an auto loan with your credit score. It’s quick, easy and painless and can make all the difference when you’re shopping for a new car.


There are several reasons why our Welland auto loan team recommends prequalification. This blog post will cover them all.


What is Welland auto loan prequalification?


Auto loan prequalification is a dry run of an application to see if you would qualify for the loan amount. It isn’t a loan application and it doesn’t impact your credit score.


It’s an estimate of whether you could borrow the amount you want to borrow with your income and credit score. It can inform the rest of your car search and even change the type of car you buy.


We think it’s an essential part of buying a car, which is why we recommend it so much!


The benefits to prequalify for a car loan


There are a number of benefits to auto loan prequalification.


They include:


Tells you how much you can borrow


This is a key benefit of auto loan prequalification. It can show you exactly how much you could borrow with your income and your credit score. They are more accurate than auto loan calculators but are just as easy to do.


It saves falling in love with a car you couldn’t afford or turning up to the dealership to buy a car only to find out you couldn’t qualify for the loan.


Sets expectations


Knowing how much you could afford sets your expectations. If you know you can borrow X amount and have Y amount as a down payment, you have a fairly solid budget to work to.


This can then influence the car search by including or excluding certain makes and models. Having this knowledge nice and early means you don’t research cars you cannot afford or waste time test driving or enquiring about cars you couldn’t buy.


New or used?


Expectation setting can also inform your decision to buy a new car or used model. If the loan amount isn’t sufficient to buy new, you could consider a certified used model of the same standard but for less money.


There are pros and cons to buying new and buying used and the loan amount can decide one way or the other.


Gives you an idea of interest rates


If you have researched auto loans recently, you will already know there is a huge variety of interest rates out there. Some are reasonable while others can be extortionate. Many rates will be dependent on your credit score so it’s useful to know from the outset what kind of rate you can expect.


If the rate is too high, you can lower the loan amount to reduce it. If it’s low, you could potentially borrow more.


Auto loan prequalification, or preapproval is a simple way to find out whether your big plans to buy a car are feasible or not. It’s free, takes just a few minutes and could change the rest of your car search. That’s why we recommend them so much!


We will use all our skill and experience to deliver the lowest possible Welland car loan rates, guaranteed. Contact Car Nation Canada Direct to learn how we can help


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Categories: Auto Loan

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