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This makes it easier to stay on budget and potentially negotiate a better deal when shopping for a car.
Heres how to get approved for a car loan and what to know about preapprovals.
What Does It Mean to Get Preapproved for a Car Loan?
Generally, a loan preapproval holds more weight than a loan prequalification.
Thats because a preapproval acts as conditional approval from the lender to finance the vehicle purchase.
Where to Get Preapproved for a Car Loan
Many financial institutions offercar loan preapprovals.
The table below highlights the pros and cons of working with different types of financial institutions.
We explore both sides of the equation in the table below.
Is Car Loan Preapproval Worth It?
If you are shopping for a car, getting a loan preapproval is usually worth it.
Preapprovals typically set the stage for better rates, a smoother buying process and more negotiation power.
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