Using a Preapproved Auto Loan to Save Time and Money

While there is a tendency to regard most current financial policies as strictly for the lender’s benefit, the preapproved auto loan is an excellent procedure as it directly benefits both the borrower as well as the lender and if you happen to be one of the many people who suffers from a less than ideal credit rating, then you will especially benefit.

The Process

Some people get rather flustered when it comes to these loans, as they are unsure as to the best way to go about obtaining them, although it should be noted that there is a rather big clue in the name folks! A preapproved auto loan simply means that a person who intends to purchase a car (it does not matter whether it is second hand or brand new) has approached a financial lender such as a bank, credit union or the like with the specific intention of borrowing money to purchase a car.

The process operates just like any other loan in that the lender will examine the borrower’s credit history, their current salary and assets, any outstanding debts they may have and the amount of money they intend to borrow. If the lender is so satisfied that the borrower will be able to repay the loan back in the time frame specified, then the borrower will be issued with their preapproved auto loan.

There are Benefits

It is a well documented fact that salespeople will try their level best to influence consumers into purchasing accessories in addition to their major purchase and the automobile industry is no different. One of these accessories is loan packages, designed to enable people to purchase the car of their choice….although this is based on shrewd salesmanship rather than altruism and the finance packages offered by the automobile retailers are generally more onerous. By having the cash already, you will be able to cut through the red tape as well as the well-practiced sales speech and be able to drive off the lot with your new purchase.

Another benefit to having a preapproved auto loan is that the consumer has their bargaining power significantly increased meaning that they are in a much stronger position to negotiate and haggle with the salespeople in regards to the price. Who knows, you may be able to secure yourself some car accessories or a free repair bill for your efforts.

Automobile salespeople rely on people’s emotions and excitement of the prospect of owning a new car to their own advantage and so they will pitch a seemingly generous offer on a rather top end car confident in the knowledge that the consumer will probably be willing to pay more for the privilege. By having the financial details already thrashed out, you will be taking the most potent weapon in the salesman’s arsenal, because you will be much less likely to be influenced in the “heat of the moment” by a tragic combination of impulsive behavior and clever manipulation.

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