How To Get A Conditionally Approved Car Loan
Once you’ve decided you’re in the market for a new car, your next step is to establish a budget. Unless you have deep pockets, you’ll be looking squarely at a car loan. However, the prospect of working with an unknown budget is often enough reason to seek car loan pre-approval. Here’s how to get a conditionally approved car loan.
Car loan pre-approval online
Here at Positive Lending Solutions, we accommodate car loan pre-approval online. Once you get in touch with us by phone or our simple contact form, we discuss your car loan options with you.
After an initial conversation, we’ll ask you to complete a car loan pre-approval application. You can complete the 10-minute process online or over the phone. If we require any other information or documentation, one of our specialist lending managers will be sure to ask.
We will consider a range of lenders and advise you accordingly. Next, we match you with an appropriate financier and loan based on your needs and financial profile. As an intermediary, we can facilitate any queries between you and the lender.
If you’re happy, we forward your application to the lender. If the financier is satisfied with everything, including your credit file, they will grant car loan pre-approval. This will provide you with conditional approval so that you have a working budget. Most approvals occur within one or two days.
That’s it! Now you can begin the process of finding and negotiating your next car.
Why get pre-approval?
A fixed budget makes the car purchasing experience a smoother and more efficient process. Not to mention, a less stressful event. If you’re buying second-hand, you even have the knowledge that you can act quickly before your car is sold.
Car loan pre-approval removes the need to discuss and negotiate financing obligations with the dealer. Walking into a dealership with pre-approval separates you from other prospective car buyers. You are effectively a ‘ready’ buyer.
What other benefits come with car loan pre-approval?
In the eyes of a dealer, pre-approval is like cash. The dealer understands your financier has granted you conditional approval to purchase a vehicle.
Negotiating power is one of the strongest points in favour of car loan pre-approval. Instead of negotiating repayments, you can tell the dealer you just want to discuss the car price.
A pre-approved status also signals to dealers the true limit of your budget. If a dealer is unable to accommodate this, both parties know you will walk away from the deal. As a result, you improve the likelihood of being able to negotiate the car price down.
Additionally, if you’re in the market during a buyer friendly period, such as End of Financial Year Sales, conditional approval for a car loan will provide you with even more leverage. There’s also no liability, obligation or cost involved with car loan pre-approval online.
Who should consider a pre-approved car loan?
Car loan pre-approval suits individuals who are:
- Employed full-time and intend to remain in the same job
- Uncertain how far their budget may stretch
- Rated as an acceptable credit risk
- Unlikely to see their assets or liabilities change before settlement
- Looking for a new car, or one not older than 7 years
- Ready to purchase a car within the next few months
What other considerations are there?
Before you begin the pre-approval process, make sure you have all your employment and financial information at hand. It is also beneficial to know your credit score and refrain from making multiple applications.
Even though you may receive car loan pre-approval online, this doesn’t mean you have received final approval. Conditional approval stipulates preliminary acceptance for a loan up to a certain amount, typically valid for two to three months.
Because conditional approval is subject to review, the loan won’t necessarily be accepted for every vehicle – especially older cars. Once you have confirmed the vehicle you intend to purchase, you must resubmit a car loan application. The lender will review the application for unconditional approval and send out documents for final settlement.
A conditionally approved car loan offers numerous benefits. While not everyone requires or will benefit from car loan pre-approval online, it can help you firm your budget, offer you greater negotiating power, and provide immediate access to purchase a vehicle.