August 15, 2019
Benefits of Getting Pre-Approved for a Car Loan
Ready to buy a new car but don’t know where to start? Look no further than Interior Federal Credit Union for your next vehicle. Apply for your car loan, and then request a pre-approval letter from us so that you don’t have to visit the Finance Office at the dealership! Now, that’s purchasing power. Just tell them you have the money to buy the car and then work out the price with the salesperson. Don’t want to deal with a salesperson? Then, you might want to shop online with our car buying service, TRUECar.
To start the application process:
1) Before applying, use our calculator to figure out the amount you can afford.
2) Fill out an auto loan application online. Apply for an amount a bit higher than you would like to spend, just in case.
3) In the notes section, request a pre-approval letter so the Credit Union knows you would like one.
4) The loan officer will notify you about your loan status via email.
5) Take your pre-approval letter with you to the dealership!
A pre-approval letter makes you more attractive because it will shorten the loan process significantly when you’re ready to take out the loan. However, that is only a small benefit of getting pre-approved before you start “shopping.” If you finance your loan and get pre-approved with Interior FCU, we offer up to 100% financing plus tax and tags, extended warranties, GAP Insurance, and payment protection insurance.
Here are 3 more advantages of getting pre-approved for a vehicle loan:
1) You’ll know what you can afford
Your pre-approval will tell you exactly what you can afford. This way, you’ll avoid being disappointed later when you have your heart set on a certain vehicle only to be told you can’t swing it financially. Knowing how large a loan you’ll qualify for will simplify your search and get you into your car sooner. Be sure to calculate other monthly costs, such as property taxes, and increased auto insurance rates when determining the actual amount of money you’ll need to shell out each month.
2.) Don’t get taken for a ride
Picture this scene at a car dealership:
Salesperson: So, you’re here to buy a new car! What are you looking for?
You: I want something with a smooth ride and –
Salesperson: Got it. And how much of a monthly payment can you afford?
You: Well, I think I can swing up to $500 a month, but I’d prefer something closer to $450 if you —
Salesperson: Step right this way please! Let me show our new line of Camrys at just $495 a month! They have the most luxurious feel and the ride is smooth as butter!
What happened here is, quite simply, a salesperson looking to make the most money out of a customer. When you’re unsure about how much you can spend, the dealer will capitalize on your uncertainty and try to sell you a car that just barely skims the maximum amount you’ve decided you can afford.
Also, when you name a monthly payment you can manage, the dealer will work with that number instead of talking about the price of the car. They may try to inflate the payment with charges and fees just because they fit within your named payment amount.
In contrast, when you show up at the dealer with a pre-approval in hand, the salesman will have to show you cars with price tags that fit within your loan amount.
Don’t get taken for a ride; get your pre-approval before you set foot in the dealership!
3.) Be taken seriously
A car dealer will take you a lot more seriously when you wave that pre-approval in their face. Having that information in hand shows you’re ready to buy. They’ll wait on you quickly, get the deal done so they can move on to their next customer.
The Credit Union offers great rates on all vehicle products. We finance everything that has a title, including boats, trailers, RVs, all-terrain vehicles, and more!
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