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Why Get Pre-Approval For A Car Loan?

29 March 2022

Why Get Pre-Approval For A Car Loan?

When you decide to buy a new car, the first thing most people do is head to the nearest car lot to check out the options on sale and go for a test drive. However, that may not be the best first step on your journey to buying a car. The very first thing to do is find out how much you can spend by getting pre-approval for a car loan. Discover why to get pre-approval and how it works. 

What is Pre-Approval?

Pre-approval is the process of applying for a car loan before you've even found the one you want to buy. It is a conditional approval that lets you know how much you can borrow and the terms of the contract, what the interest rate would be, and how long you'd have to pay off your car.

Why Get Pre-Approval For A Car Loan?

Why get prep-approval for a car loan? There are so many reasons, including the benefits below: 

Flexibility

With a pre-approval from a lender, you're not tied to buying from one car yard. Instead, you'll be able to get the money whether you're buying new from a dealer, from a secondhand car sales yard, or even purchasing privately. The choice is yours! 

Stick To A Budget

Obtaining pre-approval for a car loan gives you a set spending limit that you cannot exceed. This helps to narrow down your choices as you hunt for your ideal vehicle. Plus, it might give you a little bit of bargaining leverage, as you can simply say that you can't go over this price when haggling. You may be able to score a bargain because of your hard spending limit! 

Get A Good Rate

Instead of having your heart set on a car and then needing to find a place that will approve a loan, you're in the drivers' seat with pre-approval. You can find out what lenders will offer in terms of interest rates and wait until you find a good deal. If you haven't found your car yet, there's less urgency to make a loan agreement. 

What Are Your Other Options?

Apply Later

As mentioned, many people look for a car before getting pre-approval for a car loan. This doesn't always work out well, as you might fall in love with a vehicle that's completely out of your price range. Or you may decide on a car and then be denied finance. You're much better off knowing beforehand by getting pre-approval.

Pay Upfront

If you have plenty of time before you need to buy a new car, you might consider saving up the money. This is a great way to go if you can hold off on buying a car until you've saved up the few grand you'll need to purchase it. 

Borrow From Family

Finally, you might consider borrowing money from a family member. They often won't charge you interest and might be able to give you the money straight away. However, borrowing money from loved ones can potentially damage relationships. For example, if you can no longer afford repayments. 

When To Apply For Pre-Approval For A Car Loan

We suggest beginning the application process for pre-approval for a car loan a few days before you want to start looking for your car. That way, the finance company will have time to get back to you with any questions and then complete the pre-approval before you start looking.

You want to do it close to looking for a car, as pre-approvals usually only last a set amount of time. If you apply too far in advance and then don't find your ideal vehicle right away, the pre-approval may expire. 

How To Get Pre-Approval For A Car Loan

Now that you know why to get pre-approval, it's time to find out how to do it. Stadium Finance offers pre-approval for a car loan through a very simple process. 

Step 1: Online Application

Head to the application page on the Stadium Finance website. You'll get a short form to fill out that just asks for a few relevant details, such as your name, date of birth, and about your financial situation. The form takes just a few minutes to complete.

Step 2: We Consider Your Application

Now your application is in our hands. We'll look at it and think it over before coming back to you with any questions or possibly with an agreement for pre-approval. 

Step 3: Choose Your Car

Once you have gained pre-approval, it's time for the fun part! Head to your local car yard to start the search for your ideal vehicle. With a nominated amount that you can spend, it's easy to begin with that criteria and narrow down your search until you find the perfect car for your needs.

Then, all you need to do is let us know the details of the car you chose. We'll pay for it, and you can pay us back across the agreed loan term. Simple as that! 

Why Get Pre-Approval From Stadium Finance?

Transparency

We are upfront about our interest rates - you'll know exactly what you can expect to pay once you actually take out the loan. With such competitive interest rates, there's no reason to hide them in the fine print of your contract.

Speed 

When looking for a new car, time is often of the essence. Maybe your last car broke down or taking the bus isn't working for you anymore. We have quick response times so that you will soon know whether you've gained pre-approval and can begin searching for a car.

A Team Who Cares

Stadium Finance hires kiwis just like you, who like to help others access the items or services they need. If you need a car, they are more than happy for you to ring up for a chat and discuss your needs before completing an application for pre-approval. Our friendly team are here to help.

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