Why Get Financing Before You Buy a Vehicle
Buying a new or used vehicle can be stressful. It is an expensive purchase that requires thought, time, and research. Plus, you will likely have to negotiate with a salesperson over price and financing. But don’t let this get in the way of you finding your perfect vehicle.
Luckily, there are steps you can take ahead of time to make the process easier. One of the best ways to make your dealership experience less stressful is to walk in with financing already in place.
Here are four reasons you should get pre-approved for an auto loan before heading to the car lot.
Gives You a Stronger Negotiating Position
Typically, when you go to the dealership, you pick out a vehicle and then discuss financing. Salespeople usually start by asking what you want to pay each month — a classic sales tactic.
When this happens, it’s easy to get stuck with a long term and high rate because you’re focusing on the monthly payment instead of the total vehicle price. After all, “$300 a month” can sound better than “$52,000.”
By getting pre-approved for an auto loan ahead of time, you only have to negotiate the total vehicle price. The salespeople will treat you like a cash buyer who can walk away at any time, giving you more power in the transaction.
Helps You Set and Stay Within Your Budget
After doing research, you likely know the type and estimated price of the vehicle you want. With this information, you can get pre-approved for an auto loan and head to the car lot knowing your budget.
If you walk in with no financing in place, you may end up paying more than you budgeted for over time.
Makes Your Dealership Experience Easier
As we mentioned above, with your pre-approval in place, you only need to negotiate the total vehicle price.
This will save you time and money at the dealership because you won’t need to set up financing. Plus, you can skip out on haggling over rates, terms, and payments with the salesperson.
Gives You More Confidence
Between the price and negotiations, a car dealership can be an intimidating place. Wouldn’t it be nice to go in knowing you’ll get a great deal on the vehicle you want?
That’s why you should get pre-approved for an Auto Loan with Connexus ahead of time. With our low rates and flexible term options, we can help you drive affordably. Start the process by booking a call with one of our auto lending experts or apply online today.