The Benefits of Auto Loan Pre-Approval

Being financially empowered as you shop for a new car.

There are many benefits of auto loan pre-approval, and perhaps the biggest is the kind of financial empowerment it gives you as you shop. Car buying doesn’t have to be stressful, but inspiring and fun instead. See what it takes to get pre-approved to help make your time shopping on the lot a happier one.

How to get pre-approved

First up, check your credit score and make sure it’s accurate. This is important because as lenders like Xceed finalize an auto loan, they will look to your score to determine the rate. If you find information that’s incorrect on the report, now you’ll have time to dispute it and even have it removed from your record so we can give you the best rate possible.

As you’re seeking pre-approval, the next step is to have all the necessary identification and background information handy for us to verify. Normally, Xceed will need your social security number, your drivers license or state or military ID, as well as your employment status and annual income.

Once you have a pre-approval, remember you have about 30-60 days to use it when you shop for your new car––so have a plan to start comparing across lots right away.

Benefits of pre-approval

Empowerment is the name of the game when it comes to pre-approval. You’re not just financially empowered with a pre-approval in hand, but have a clear expectation about how much you can spend when you’re shopping.

  1. Pre-Approval Does Not Affect Your Credit Score

One great thing is pre-approval does not affect your credit score until you’ve actually applied for the loan. So when you find out how much you have been pre-approved for from a lender like Xceed, you get peace of mind that nothing’s changed in the records of your financial status.

It’s a different case when you apply for a loan directly. You may not know if you’ll be approved, and in the meantime your credit score could take an additional hit. Pre-approval eliminates that guesswork and that point of risk, and lets you know right off the bat if you qualify.

2. Greater Negotiating Power

Now, with pre-approval in hand, you practically guarantee yourself greater negotiating power–-it’s hard to think of a more pressured environment than a car dealership where so much money is at stake, so you can think of your pre-approval practically like a superpower.

You’ll know exactly how much you can spend and so you can focus your search on the cars truly within your budget. It’s a process of elimination that may not be as flashy as the latest car commercial, but it ensures your financial strength as you roll off the lot.

3. Bypass High Rate Dealership Loans

Pre-approval also means you can bypass the often high-rate loans offered by dealerships themselves. Dealership loans are definitely convenient, but they come at a cost that does not necessarily have you financial empowerment in mind, as it is when you’re working with Xceed.

Our members come first for us. We want you to feel happy, proud, and enabled to live the life that really serves you. Xceed even offers additional car purchasing support in select regions through its partnership with AutoWise. They can help you browse the right vehicles, negotiate the best price, and even coordinate the car’s delivery.

At every step, we’re here to make the car-buying experience as stress-free as possible. See if you are pre-approved on an auto loan from Xceed, and start looking forward to sliding into the driver’s seat of your financial empowerment.

Are you ready to purchase a new or used car?

Check out our current auto rates and start your new auto loan process today!

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