3 Good Reasons to Get Pre-Approved for Your Next Vehicle Loan

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So you’re thinking about buying a new vehicle. You might even have an idea of the make, the model even the color of what you’re looking for in a new car. But before you head over to the dealership or begin your search online, we’d like to share some budget and cost-saving reasons that you should get a preapproval first.

Pre-Qualification vs Pre-Approval

Before we get into why a preapproval is beneficial, let’s talk a little about what a preapproval is, and how it’s different than a prequalification. With a prequalification, some lenders can provide you with a few estimated figures based on your basic financial information. By taking a look at your base salary, and roughly how much you’re looking to finance, a prequalification provides you with a picture of what your purchase could potentially look like when it comes down to cost.

When you decide to get preapproved, like with Call Federal’s Check-in-Hand program, we take your actual information (such as your verified income, and credit report) and we give you the real numbers of your potential auto loan. The maximum purchase amount, monthly payment options, and your interest rate are all laid out so that you have exact numbers of what you’re working with before heading off to the dealership with your check-in-hand.

So why is a preapproval a good idea? Let’s get into it here:

Know What You’re Working With, Financially

One of the greatest reasons to get a preapproval before you begin your car shopping is you will know how much a new car will cost you. Of course, until you find exactly what you’re purchasing you won’t know the exact details of your purchase price, but a preapproval can give you more of an accurate look into your financing options. Your preapproval with Call Federal can tell you how much you’re approved for, your interest rate, and your monthly payment. Take some of the guesswork out of the financing piece of car shopping and know what you’re qualified for before you get your heart set on a specific purchase.

Save A Bunch of Time At The Dealership

When it comes to shopping around, most of us are all about the test drive. After all, who likes sitting in the finance office all day? By getting a preapproval, you get to skip the whole song and dance of searching around for your financing options, because with a Call Federal Check-In-Hand, your loan is in your pocket! And because you already know the details of your loan and your monthly payment options, save time and frustration knowing you can focus your attention on finding your new ride.

Enjoy the Convenience and Flexibility

Searching for your next vehicle doesn’t have to feel rushed and you don’t need to be surprised by sticker shocked prices. Making your preapproval your first step in car shopping gives you the flexibility to shop around any licensed dealership to find the best deal, and you have an entire 45 days to use your check from the day you apply. And did I mention the convenience? With seven branch locations across the metro Richmond area, and applications online or by phone, you can apply for your preapproval anytime and anywhere. And if you’re wondering when you will make time to pick up your preapproval, our unique check-in-hand program comes with the convenient option of having your check delivered to your door or desk.

Next Steps

When you’re ready to go out and hit the car lots, make sure Call Federal is your first stop. And with three ways to apply, skip the hours wasted in the dealership’s finance office and apply for your preapproval today.

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