How do I get preapproved for a car loan?

I’m getting my first car, and I want to make budgeting as easy as possible. I've read that preapproval on a car loan is the best way to do that—I’m just not sure where to start! How do I get preapproved for a car loan on my first car?

Answer
Congrats on your first car! Preapproval for a car loan is definitely a smart way to budget for a new vehicle and get a basic idea of what you can expect to pay for your car loan each month. To get started, start shopping around for car loan rates.
Once you find the lender you want to work with, you can apply online or in person. Just make sure to have the following documentation ready:
  • Proof of identity
  • Proof of income
  • Vehicle information
  • Social Security number
With this information, you can streamline the process and get approved as quickly as possible, often within one to three business days.
After you have your preapproval letter in hand, you can go shopping for a car that fits your budget! You can even use the preapproval letter as a negotiation tool with dealers.
Finally, when you go to close on the loan, you will need proof of insurance. That’s when you need to shop with Jerry. We’ll get you customized quotes from top insurers in seconds so that all you need to do is pick the plan that works best for you—and once you pick one, we’ll even help you switch!
Best of luck, and enjoy your new ride!
Eric Schad
Answered on Oct 29, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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