Posted Thursday, June 9, 2022
At Indy Auto Man, you can get your pre-approval for a car loan from the comfort of your home. Browse our inventory online, choose the car you want to buy, and let us help you get behind the wheel with no hassle.
We strive to make the auto financing process as smooth and transparent for you as it should be. To help you reveal all your doubts, we prepared answers to the frequently asked questions about the pre-approval procedure.
An average car buyer in the US spends at least 3 hours at a dealership completing a deal due to the uncertainty in choosing a car and the inability to agree on a fair price. However, you can cut in half the time spent checking various options, interacting with salespeople, and filling out paperwork during the car buying process if you plan ahead.
By getting preapproved for a car loan, you can save money comparing loan offers and boosting your bargaining position in the car buying process. It also gives you the opportunity to review your budget beforehand and manage your finances properly. When you set a realistic budget, you should also add about 10% for fees and taxes.
You may also consider trade-in options that offset the overall cost of the purchase.
Pre-qualify for auto financing means sending an application to lenders. They review your financial situation to determine how much you can afford. Getting pre-qualified can save you valuable time by deciding what you can afford, so you can find a used vehicle that matches your price point. Read more on how to estimate your car payment interest rate.
Getting pre-approved is a reasonable indication of your ability to secure financing. This means a lender has reviewed your score, credit report, and other information to determine the amount and interest rate on the loan you are likely to receive.
An auto loan preapproval offers will not affect your credit score unless you confirm and apply for a loan. If you read the proposal in the fine print, you will see that it is not really approved. The person receiving the offer must complete an application before the loan is granted.
Lenders typically look for borrowers above the core range, so most existing auto loans require a score of 661 or higher. And while 650 is considered a “fair” rating, it is close to being estimated “poor”. If you lose even one point, you will fall into the poor category, and lenders can be hesitant when offering auto loans. When financing a car with Indy Auto Man, customers have a good chance to receive the best rate regardless of their credit history.
Getting multiple pre-approval letters from national Indiana and local Indianapolis lenders will solidify your position. And if you receive several requests for the same loan type within a short period, credit organizations usually treat them as one inquiry, avoiding impacting your credit score.
Despite being pre-qualified, your application can be declined, if you do not accept it for long. Several factors, such as changes in your employment and earnings, debts, or credit score can interfere with your car purchase plan and cause your lender to reject your application after pre-approval.
Since dealerships specialize in car loans, in-house financing can help you save money. Used car financing may be the best option for those who don’t have a perfect credit history.
The Indy Auto Man dealerships with in-house financing backed by 24 financing organizations including banks and credit unions may offer beneficial interest rates in Indianapolis.
When you provide the information for pre-approval, the process takes about 24 hours or less, and the offer will be valid for up to 60 days, but some lenders may provide other periods.
Unfortunately, you don’t lock a rate when get preapproved. The quoted mortgage rate will be floating, and it may rise and fall in line with the market. So you should better not postpone your decision if you get an advantageous offer.