Pre approved auto loans are a brilliant way to save some money by getting a good bargain on the car from the dealer. With a pre approved loan, a consumer becomes a tempting business option for the car dealer. They know that the prospective car buyer is a confirmed customer, so they do not want to lose their business. Sellers will try to negotiate in every possible way to offer the individual the most attractive deal. Thus, with pre approved car loan, buyers get an edge over the sellers.
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While seeking auto loans, these tips may come handy. First and foremost, get a copy of the credit report. There can be errors which need to be fixed. Incorrect information may lead to higher rates on the loan, or even prevent the auto loan approval. If the report shows that the individual has too much debt as compared to the income, then the lender may put one in the high interest rate slot. And just a few points higher can also result in a difference of thousands of dollars over the term period. An excellent credit means instant auto loan approval. The next thing to do is shop around and get quotes from quite a few lenders. One can even approach a loan broker to get information about several lenders at one go.
Once the potential car buyer settles on a particular lender, a blank check will be sent to that person by the chosen lender. The check has a fixed credit limit, up to which the borrower can spend on the automobile as well a time limit. It is this check that one takes to the car dealer. After the deal is finalized, the buyer can write the amount on the check and finance the car. Knowing one's credit limit is a great advantage of pre approved car loans as there is no chance of over spending. Some people give into the temptations and purchase an extravagant car. And then suffer heavy monthly payments for the next five six years. With a cap on the spending limit, the expenditure can be kept under control.
AutoDriver offers some of the best deals in the auto loan industry.