"Do you need to know what car you are going to buy before getting approved for a car loan? "

"I need to buy a car but it has been years since I last bought a car and I really can’t remember the process. I think I had picked out the car first and let the dealer arrange for financing, but I do remember being shocked at the interest rate. This time around I would like to get my own financing to get a better deal. Do I still need to pick out the car before getting approved for a car loan?"

“You do not need to know what car you will be buying to get approved for a car loan. This process is called pre-approval. All you need to know is about how much you want to spend on a car.
Once you have pre-approval from your bank, you can go to the dealer and negotiate the price of your favorite car. After agreeing on a final price, you simply call your bank and finalize the loan.
Don’t forget to notify your current insurance company about your new vehicle. Buying a new car is a great time to consider shopping around for car insurance to make sure you’re getting the best rates. Smart comparison tools like Jerry source rates from the top 45 companies in a matter of seconds.”
Johnny Puckett
Answered on Jul 26, 2021
Johnny Puckett is a freelance writer and automotive expert. He has contributed content to a number of some of the largest online publications, aftermarket automotive manufacturers’ sites, and automotive informational sites. His experience in the automotive and information fields informs his writing at Jerry. His automotive interests bleed into his free time, where he enjoys modifying his favorite cars and woodworking.

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