Do
you remember the pain of abandoning your dream car because you couldn't
get an auto loan approval? It is hard to let go the dream of buying
your favorite car. However, times have changed with the easy
availability of a pre-approved auto loan.
With
a pre-approved auto loan, you can get a clear picture of the approved
loan amount. Also, the lender will give you assurance of paying money as
and when required. It means that the loan program will make car buying
process a piece of cake for you.
Eligibility Criteria for a Pre-Approved Auto Loan
You
need to submit your financial documents to the lender. He will examine
your credit ratings and banking activities in detail. After inspecting
your financial situation, he will provide you with an approved loan
amount for buying a car.
Why opt for a Pre-Approved Auto Loan?
The following points justify why one should opt for a pre-approved auto loan rather than applying for a traditional loan:
1. Car Buying Process becomes Clear
After
the lender assesses your credit ratings and banking details, you will
get a clear idea of the maximum loan amount that he is ready to lend
you. It makes choosing a car simple and clear. If your credit ratings
are good and the lender approves you for a higher loan amount, you can
buy your dream car.
On
the other hand, if you apply for a traditional loan, you will have to
choose the car first and then apply for an auto loan. And, if your
credit ratings are not good, the lender may reject your loan
application.
2. It saves Time
What
if the lender approves for a lower loan amount than you expected? Don’t
worry! You can spend time in arranging money for the down payment
amount. Applying for a pre-approved auto loan gives you adequate time
for taking care of issues such as the down payment amount and the
cosigner. Thus, it makes buying your dream car easy. The biggest problem
with a traditional loan is that it doesn't provide you with enough time
to make arrangements for the down payment amount. Also, you need to
make quick decisions in choosing a cosigner. If you are unable to secure
the down payment amount and the cosigner, you will have to abandon your
dream of buying a car.
3. You can enjoy Low Interest Rates
Lenders
offer low interest rates to car buyers who apply for a pre-approved
auto loan. The reason is that they perform strict scrutiny on financial
documents and approve loan application of people with low risk. As they
are not worried about their investment, they are able to offer
affordable interest rates. If you apply for a traditional loan, the
interest rates will be high. It is because the loan program is not
designed exclusively for you.
4. Luxury of Time
Once
you get a pre-approved auto loan, you get an assurance of getting money
according to your requirements. Therefore, you can wait for festive
offers and enjoy additional benefits or discounts.
On
the other hand, approval on a traditional loan requires time. There are
chances that you may not be able to enjoy the festive offers and
discounts because of the long duration of the loan process.
5. Negotiations becomes Easy
Getting a pre-approved auto loan
is considered as having money in your hand. The dealer understands it
and so, tries to sell you a car as quickly as possible.As you have an
upper hand in the negotiation process, you can negotiate with the dealer
and buy the car at low price. The negotiations in a traditional loan
are not effective as the dealer is aware of the fact that you do not
have money to finalize the deal.
6. Future Benefits
A
pre-approved auto loan, if repaid punctually, also provides future
benefits. Applying for loans in the future becomes easy if the lender
knows you well. He will provide you with special interest rates and
reduce the loan approval time as well. It is because he has reviewed
your documents in the past and is well-aware of your financial
situation.
When
you apply for a pre-approved auto loan, the lender conducts intense
research on your banking account and financial transactions. But once
the scrutiny is over, you will get a picture of your situation and it
will make the car buying process crystal clear to you. So, it is better
to apply for a pre-approved auto loan than to spend time on a
traditional loan.
A subprime auto financing is the best way of securing easy car financing for your dream car. Apply with CarDestination and get ready for zero down payment auto loan on your next car purchase.
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