How do you get preapproved for a car loan?

What do I need to do to get preapproved for a car loan? I heard that’s the best way to get a good loan, but I don't know where to start.

Loans can be confusing, but don’t worry! To get pre-approved for your car loan, follow these steps:
  • First, choose which car you’d like to buy.
  • Once you have a car in mind, gather the documents you need for the loan—including the amount of money you’ll need and any trade-in information about your current vehicle.
  • Before you settle on a lender, be sure to shop around to find the most favorable terms and interest rates. Once you find a lender, you can apply for preapproval.
  • When you apply for the loan, the lender will perform a hard credit check to ensure that you qualify and determine the amount you can borrow.
  • Once you’re approved, your lender will provide you with a preapproval letter and the amount you can borrow. When you go to a dealership, you can use the letter as leverage for a better deal.
  • Keep in mind that preapproval only lasts for 60-90 days, so once you receive the letter, don’t wait!
Before you can drive off the lot with your new car, you’ll need a new insurance policy. For help finding the best rate on the coverage you need, try Jerry. The Jerry app helps users save an average of $879 per year on car insurance! Just download the app and enter some information, and Jerry will send you personalized quotes from over 50 top providers like Allstate and Nationwide.
Liz Jenson
Answered on Dec 02, 2021

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