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Getting a Car Loan Pre-approval

As much as getting your first car sounds great, it can be a daunting task. When you are looking to get your first car, there are many things that you need to know and be prepared for. You will spend hours online trying to find the right car, the right price, and the right financing. If you are having a hard time deciding what car to get, or how to finance it, the best thing to do is to get a car loan pre-approval. Not only will it help you save time, but it will also help you get the right car at the right price.

In this article, we will cover the basics of car loan pre-approval.

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Written by: Piggyy

What is a Car Loan Pre-approval?

 

A car loan pre-approval is when you are given a guaranteed approval on a car loan. The process of getting a car loan pre-approval will give you an idea of what car you can afford and how much you can borrow. Lenders will give you a set amount of money, a car loan amount, and the interest rate you will be charged. This will help you plan your finances and make sure you will have enough money to pay off the car loan. It is also the best way to get the ball rolling, and start the car buying process.

 

Advantages of Getting a Car Loan Pre-approval

 

Getting a car loan pre-approval is one of the best things you can do when you are looking to buy a car. Here are some of the advantages of getting a car loan pre-approval:

 

Free Consultation

You will get a better idea of what you can afford, what kind of car you should get, the amount of money you can borrow, and the interest rate that you’ll be charged. This will give you the information you need to make the right decision.

 

Save Time

When you are looking to buy a car, you will spend a lot of hours online and this can be a very time consuming process. By getting a car loan pre-approval, you will know exactly what you can afford, and what kind of car you should get.

 

Planning

You can manage your finances better and save money by getting a car loan pre-approval. You can also plan how you are going to pay off your car loan, and how much money you will need to borrow.

 

Peace of Mind

When you have a car loan pre-approval, you can rest assured that you will be able to buy the car of your choice because you are, theoretically, already approved for the loan.

 

Companies That Offer Car Loan Pre-approval

 

If you are looking to buy a car and you need to get a car loan pre-approval, here are some of the companies in Canada that you can check out:

 

Maritime Car Loan

Maritime Car Loan is an auto financing company that offers car loans with an interest rate that starts at 2.9%. Their repayment term is between 24 months to 96 months. They have an online calculator that you can use to determine your monthly payments. All you have to do is input the price of the vehicle of your choice.

 

Approved Auto Loans

Approved Auto Loans is another auto financing company that offers a loan amount up to $200,000 with a repayment term of up to 84 months. Their interest rate ranges between 4.9% to 12.9%.

 

Car Finance In Advance

Car Finance In Advance is a Canada based auto financing company that also offers car loan pre-approvals. They have a repayment term that is between 12 months to 96 months and weekly, bi-weekly, and monthly payment plans to choose from. The interest rate varies based on the loan amount and loan term.

Frequently asked questions

Why get a car loan pre-approval?

Getting a car loan pre-approval will give you peace of mind because you will know exactly how much you can afford to spend on a car and how much you have to pay in terms of interest.

How do you get a car loan pre-approval?

Previously, borrowers used to get this done by visiting a dealership, getting the loan officer to check their credit score, and then getting a letter stating their approval. However, with the increase in online transactions, more people are opting to get their loan pre-approved online. You can find a car loan pre-approval online through different lending websites.

How long before you get a car loan pre-approval?

This will depend as lending institutions have different turnaround times. You can check the loan terms and conditions to find out the time frame for processing. 

Conclusion

 

Getting a car loan pre-approval makes the whole car buying process much easier. In fact, you can plan your finances better, and buy the car of your choice without having to worry about your loan application being rejected.

Piggyy

״The secret of happiness, is not found in seeking more, but in developing the capacity to enjoy less״ - Socrates

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