Should you always get car loan pre-approval before shopping for a car loan?

"I'm a prospective first-time car buyer. I've read that you should always get pre-approval before you shop for a car.

Is pre-approval necessary before I start shopping?"

“Yes, you should always get pre-approval before shopping for a car for numerous reasons.
First of all, you can get a concrete number that serves as your budget for buying the car. Second, you can get an idea of what your monthly payments, and interest rate, will be. Finally, you can use your pre-approval letter as a negotiating tool to see if the dealer, or another lender, can beat it.
Add all of these up, and you can see getting pre-approval is advantageous.”
Eric Schad
Answered on Jun 09, 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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