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The Benefits Of Car Loan Prequalification In Smithville

The Benefits Of Car Loan Prequalification In Smithville

Auto loan prequalification is a quick check to see if you could potentially qualify for a loan. It’s a useful precursor to applying for the loan and something we often recommend. But what are the benefits of car loan prequalification?


It’s the turn of our Smithville auto loan team to explain.


Prequalification vs preapproval


First let’s clear up a common misconception. Getting prequalified for an auto loan in Smithville is different than getting preapproved.


Prequalification is a quick check that uses minimal personal information to see if you could qualify.


Auto loan preapproval is a more involved process that’s a true dry run of the loan.


Prequalification is useful at the very beginning of the process to see if you could potentially borrow the amount you’re looking at. Preapproval is useful towards the end of the process to see what rates and terms a lender would offer you before you apply.


We’re talking about that first option.


Benefits of car loan prequalification in Smithville


There are a couple of key benefits to auto loan prequalification. They include:


Knowing your budget


Knowing fairly accurately how much you could borrow is a key benefit of auto loan prequalification. We all have a tendency to overspend or want car we can’t afford.


This is the test to tell us what we can afford and what we cannot. It’s essential to know this nice and early to set your expectations for the rest of the process.


It’s better to know early what you can afford rather than later once you fall in love with a car that’s too expensive!


Better buying position


You know how much you have to spend before you enter the dealership. You know how much you can afford and you know the type of car within budget. That directs your search in an informed way and can help you make good decisions.


It also stops you being talked into overspending by sales staff. They are paid on commission, the more you spend, the more they earn. So, it’s in their interest to try to get you to spend as much as possible.


If you have a hard budget, it is much more difficult for them to do that.


Less stress throughout the process


Auto loans should not be about the unknown as the unknown can cause stress. You will find the car purchase process much easier to navigate if you know exactly where you are and what you can and cannot afford.


Having a good idea that you would be accepted for a loan of the amount you’re looking for also removes stress. Nobody wants to go through the whole process and set their heart on a car only to find out they cannot qualify for a loan at the 11th hour!


All three of those reasons are why we recommend Smithville auto loan prequalification. We’re sure you can think of others!


We will use all our skill and experience to deliver the lowest possible Smithville auto 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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