It does sound like a good idea. Are pre-approved car loans a good deal? Should you check your loan eligibility before visiting the car dealership?
We are sure you will hear plenty of arguments both for and against this option.
Benefits of Getting Approved for a Car Loan Before Approaching a Dealership
People for this will argue that you should know your eligibility beforehand so that you can shop for the right car within your budget. Also, knowing your loan eligibility will help you negotiate the car price better.
In many cases, if you let the lender know that you are looking to make a car purchase, they will rush in to shower you with a lot of value adds on your prospective car loan.
You can also you this pre-approved offer to negotiate with another banker for a better loan.
Benefits of Beginning your car loan search after you approach a car dealership
- Most dealers have tie-ups with leading bankers and lenders who give you special rates on car loans
- You can check your eligibility by logging on to any bank’s website. You don’t have to go for a pre-approval process
Going for a car loan approval before visiting the dealership is not a necessity but there is no harm in doing it either. If you are a loyal customer of the bank, you would get a lot of pre-approved car loan offers. Use them to your advantage and negotiate for the best car loan.