Before you start applying, do some homework on both yourself and a potential online lender. Start by accessing your credit report. This will be a snap shot of you as the lender will see it. Mistakes can be made on some of the information reported and you will want to eliminate any of them before you apply. Take time to examine it carefully and take the necessary steps to have mistakes corrected properly. The credit reporting agencies have processes and forms for you to follow to expedite this process. Remember that the lender will base the interest rate and loan terms based on the information they see on your application and credit report. They are not just looking to see that you have paid your bills in the past but also how much outstanding debt exists, whether there are other car loans on your profile and the possibility of your repaying this loan based on your stability and income.
Next, shop around for your pre-approved auto loan. Most lenders offering car loans online have a very simple application that can be completed in just minutes. In fact with many of these lenders you can apply, get approved and buy the car that very same day. Be sure to follow the instructions closely to prohibit delaying any part of the process.
Once you accept a lenders offer on the loan, a blank check will be available to you. Some lenders actually give you the opportunity to down load the check along with all of the other loan documents. Just because you now have a check that can be used for the purposes of buying a car or truck, you actually do not have a loan until you complete the check at the dealership. Until then, you are under no obligation to do anything with it.
Knowing just how much you have to spend before you start looking for that car enables you to stay within your budget better. When dealing directly with the lender instead of a middle man like the dealer, you will also know all the details about your loan that a car dealer may be less reluctant to share with you if you get financing through them. Taking this pre-approved auto loan check to the dealer will quickly give you an edge in your negotiations with them. Since there will be no question as to your real interest in buying a car, you can get better prices because they like money right away. As a cash buyer, you have better bargaining power as well as you sit down to work through the pricing on your new vehicle.
Getting that pre-approval before heading to the dealership will save you money. You can get more information about obtaining a pre-approved car loan and other useful negotiation tips online at OpenRoad Lending.
About the Author: Chris Goodman has been in the auto finance business for more than 20 years and has assisted thousands of consumers with their car loan needs. His articles are insightful and assist consumers in understanding the ins and outs of auto finance. OpenRoad Lending is an online lender with a consumer friendly website providing auto financing solutions to consumers in the process of purchasing a new or used vehicle or refinancing their existing auto. Visit the website at http://www.openroadlending.com for more information about how easy it is to get a car loan.
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