Reviewed by Shannon Martin, Licensed Insurance Agent.
If you’re preapproved for a car loan, that means you meet the bank’s lending requirements and they agree to lend you a specified amount of money at a specified rate.
There are significant benefits to getting preapproval:
First, you can lock in an agreed-upon interest rate.
Second, you’ll be better able to estimate your monthly car expenses to determine whether or not you can afford to go through with the loan prior to signing on the dotted line.
Lastly, you’ll know exactly how much car you can afford when you walk into the dealership, which makes you like a cash buyer. This can help you negotiate a better price on the car you want.
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