Pre-approval for a car loan

Car loan pre-approval: A sure thing for you – and your budget

Around 100,000 new cars are sold in Australia each year, and our love affair with a new set of wheels can become much more exciting when you have finance pre-approved.

Car finance can be something of an afterthought. After all, amid all those glossy wheels, scratch-free Duco and that unmistakeable fragrance of a new car interior, it’s easy to be distracted.

However, the reality is that most of us won’t take a suitcase of cash along to a dealer, and that makes arranging finance every bit as important as enjoying a decent test drive.

What many motorists don’t realise, is that just like a home loan, car finance can be pre-approved. And it’s a very smart strategy.

Set a budget. Negotiate hard. Resist dealer finance

Having your car loan pre-approved offers three key benefits.

To begin with, pre-approval lets you set a buying budget. This helps to clarify which makes and models are within your price range - so you can focus on those vehicles that meet your needs as well as your budget.

With finance pre-approved, you’re also in the driver’s seat to negotiate a hard bargain. Confidence is everything in price negotiations, and knowing that you have finance stitched up, plus a firm idea of how much you can spend, can be a big driver of confidence when you start bargaining.

Most importantly, having your car finance pre-approved is your best protection against high pressure tactics designed to encourage you to take out dealer finance.

Sure, dealer finance can seem like an easy option. But in many cases, the benefits all flow the dealer’s way. For one, a super low rate could mean you have to make a lump sum “balloon” payment at the end of the finance period. It’s something that can come as a nasty surprise just when you think you’ve paid off your car.

Fuel your dream with peace of mind

With your finance pre-approved, you can achieve your goal of buying a new car knowing that your finance is as well-suited to you as your new vehicle. That can be the perfect combination for hassle-free motoring.

Talk to your Mortgage Choice broker about having your car finance pre-approved.