Home Finance Benefits of Using Pre Approved Car Loans

Benefits of Using Pre Approved Car Loans

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Today, getting a car loan has become easy, and people can easily submit minimum documents to the lenders to avail the car loans. Even you can also apply for the car loans through online portals and you will get the confirmation as well as disbursement papers of your loans through mail. However, using pre approved car loans is easier and you can easily get your loan within few minutes only. In this case, you can talk to your banker or you can check the online dashboard of your saving account. Most of the banks offer the pre approved car loans to their own customers, and if you find such offers on your dashboard then you can easily apply for the same. It will take less time, minimum documentations and you will be offered less interest rate too.

Why would you Go for the Pre Approved Car Loans?

Before using pre-approved car loans, you need to consider few things such as your repayment capability, loan eligibility and interest rate of the loan. Do not break your finances and emergency funds to buy a luxury car and instead choose a car, which is in your limit. Apart from that, always check your repayment capacity before applying for the car loan. Your car loan EMI should not exceed 15 to 20% of your monthly income and if you have some exiting loans then deduct their EMIs from your net monthly income. Then you can decide your monthly repayment capability and choose the car loans according to your needs. Lastly, you need to check the interest rate along with the hidden charges of the loan. Banks never disclose their other charges such as processing fees, late fine, pre-payment charges and pre-closing charges. You need to ask them about these charges and choose the best deals for you. In this case, using pre approved car loans is better, for you because these loans come with all necessary details, and you can take your time to read their papers before you make your final decision.   

Advantages of Using Pre Approved Car Loans:

  • When you have a pre-approved car loan offer with your credit card or savings account, you can buy the car as a cash buyer. Dealers can manipulate the interest rate and offer you some higher interest car loans. However, using pre approved car loans can save your time and amounts. You can easily produce your pre-approval certificate to the dealers and buy the car.
  • Pre approved car loans can save your amounts because you can easily bargain with your banks to reduce the interest rate. Apart from that, you can get maximum tenure for your pre-approved loan. Even some banks can also offer you overdraft facility on your loan account and after paying few EMIs, you can top-up your loan.
  • Others buyers can find out some problems while they purchase the car and if they do not have enough credit score then they cannot get the car loan from the leading banks. But using pre approved car loans can offer you more convenience and you do not need to submit your credit score to the dealers anymore. Pre-approved loans mean that your loan has already been processed and you can receive the amount anytime according to your needs.

By using pre-approved car loans, you can negotiate with the dealers to reduce the car price. Dealers can offer you some long-term loans with huge interest rate, and if you agree with their terms then they will start manipulating their interest and add few other charges in your deal. However, when you have a pre-approved car loan, you do not need to go for such hassles, and you can easily show your pre-approved car loan letter to the dealers from whom you wish to buy the car.

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