Posted on July 25, 2016 by Jake Ward, CMSE – VP of Marketing
Pre-Approval On Your Vehicle Loan
Getting pre-approved for an auto loan before you set foot in a dealership can bring peace of mind, and save you money, during the sometimes overwhelming car buying experience. Be prepared, when you're pre-approved you will know exactly how much you can spend on your vehicle. By working with R.I.A. Credit Union in advance, you can determine a payment plan that fits your budget.
There are many advantages to getting pre-approved, but this important step is often overlooked.
Learn what’s on your credit report.
When you apply for a car loan, the lender will pull your credit report. Credit will play a key factor in the type of vehicle you can afford. This gives you an opportunity to address any issues on your credit report before you fall in love with your dream car.
Find out your auto loan interest rate.
Your credit score determines your auto loan’s interest rate. The better your score, the lower your interest rate will be. Know where you sit before you go into the dealership. The rate difference on a vehicle loan is substantial as your credit score goes down.
Calculate your interest and loan term to see what your payments would be.
Establish your vehicle budget.
When you’re pre-approved, you know exactly how much you can spend on your vehicle. By working with your R.I.A. Credit Union in advance, you can determine a payment plan that fits your budget.
Puts it into perspective.
A pre-approval will help you stick to your budget and price range. You want to make sure you have it set where it’s affordable for you.
Simplify the negotiation.
Getting pre-approved takes away some of the unknowns of car buying, your credit score, your interest rate, and your vehicle budget. When negotiating, stay focused on the selling price of the car rather than on the interest rate and trade-in. Then it’s really about getting the vehicle at the best price you can.
R.I.A. Credit union members can choose between several payment options for maximum savings. You can apply for an auto loan online, or apply for a loan over the phone or at any of the branches.