The Benefits of Pre-Approved Auto Finance

When deciding on purchasing a car through auto finance there are a number of places that the applicant can go to. There are lending companies like credit unions and banks and there are the dealerships and car lots which provide the finances and the car. Due to this most people prefer car dealerships as the person is getting the car and doesn’t have to worry about running with the finances and then looking for the car. However, pre-approving the auto finance or getting it from lending companies has a lot of benefits which are worth accessing for a secure loan term.

The first benefit is security. The dealers act as middle men between the lenders and the borrowers which means that they are in charge of transferring the application and then telling the borrower regarding the interest rate charged. However, the borrower just has to assume that the interest charged by the lender is the same as what is said by the dealer. There have been cases in which dealers mark up the interest rate because of greed and applicant’s lack of awareness. Hence, by pre approving the auto finance the borrower knows that there isn’t anything deceiving regarding the interest charged by the lending companies which means it is going to be safe and secure.

Another benefit is that the borrower gets a chance to become the buyer. When going to a car dealership, the applicant is treated like an auto finance borrower which means that he/she would have to comply with the terms of the dealer. However, when the finances are pre approved the borrower has become the buyer and can go in and negotiate on any car that he/she sees fit. The dealers don’t say no to ready money and are going to comply with the terms of the auto finance borrower/buyer.

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