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Reasons To Prequalify For A Car Loan In Brantford

Reasons To Prequalify For A Car Loan In Brantford

We often recommend getting you prequalify for a car loan before you begin shopping for a new car. We don’t recommend it for our own benefit, but for yours, as it can be genuinely helpful.


There are a few good reasons to prequalify for a car loan as we will share now.


Helps you set a budget


Budgeting is a key component of buying a new car. You need to know how much you have to spend before you go looking. If you don’t, you’ll fall in love with a car you cannot afford or end up overspending on the car loan and potentially put yourself in difficulty.


We consider budgeting vital in any new car purchase whether you’re using a car loan or not. Pre-approval will show you how much you’re likely to be able to borrow before you start shopping.


More power during purchase


If you’re already pre-qualified for a certain amount of car loan, you’re in a much better position when you’re in the dealership. You know how much you have to spend, you already know you are likely to qualify for the loan and you have a definite price ceiling to work with.


All combine to strengthen your position when dealing with salespeople. You’re a qualified customer, you have the means to buy what you’re looking at and can insist on spending your entire budget on the car and not on unnecessary extras.


Makes car buying easy


Being pre-qualified for a car loan isn’t the same as having the cash in the bank but it’s almost as good. You have a definite budget, you have an amount you are likely to qualify for when you apply for real and you have the confidence in knowing you have funds available if you do fall for a particular make or model.


This enables you to walk into a dealership knowing exactly what you have to spend and how you want to spend it. It also opens up buying online as that budget can also be spent buying a car over the internet. That’s about as hassle-free as it can get!


Pre-qualification does not guarantee acceptance


Just a word of warning though. Getting pre-qualified for a car loan means you are very likely to get the car loan you pre-qualify for if your application was accurate and nothing changes. It isn’t a guarantee though.


The financial market might change or your personal circumstances might change. These can impact the likelihood of being accepted for a car loan.


However, ensure your pre-qualification application is as accurate as possible and you should be fine!


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Categories: Car Loan