You might want to get a preapproved auto loan before you go car shopping. This is a great way to save money on your next car or even your first one. Here are some tips that will help you get an auto loan that has already been approved and save a lot of money.
Get a copy of your credit report and look it over. This is the first thing you should do. Some of the information on it could be wrong, and you want to get rid of them before you apply. Take the time to look at it carefully and do what you need to do to get mistakes fixed right. Remember that the lender will look at your credit report to decide how much interest to charge you on the loan. If you give wrong information, you might not be able to get a loan or you might have to pay more in interest. If you have too much debt compared to how much money you make, you might also have to pay more in interest.
The next step would be to look around for your auto loan that has already been approved. This means getting a few quotes from different lenders and picking the best one. To do this online, you will need to go to the website of a broker, where you can fill out one form and get quotes from several lenders. Your quotes won't take long to come back.
Once you agree to a lender's offer, they will send you a blank check. You will also be given a credit limit, and you can write a check to the car dealer for the price of the car. This check is only good for a certain amount of time, maybe two months. Even though you get the check, there is no loan until you spend the money.
Before you start looking for a car, you should know how much you can spend. This will help you stick to your budget better. You will also know everything about your loan, which is something a car dealer may be less likely to tell you if you get financing through them.
Taking this check to the dealer to show that you've already been approved for an auto loan will give you an immediate advantage in your talks with them. Since there won't be any doubt about how serious you are about buying a car, you can get better deals because they want to sell you a car right away. They also know that you want to buy a car for real.
To get the most out of that preapproved auto loan check, though, you shouldn't buy right away. Once you've found one or two cars you're interested in, go online to find out how much they're worth and how much you can get one for in your area. It could be going for less than what the dealer is asking. If you know this, you can go back to the dealer, show him the better offer, and watch as he or she lowers their price to match or beat it.
Don't forget that putting some money down or trading in your old car can make the deal even better. Learn how to make good deals with car dealers ahead of time, and you can be sure to drive away with one of those great deals, all with a preapproved auto loan.
