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The Benefits of Car Loan Prequalification in Halton Hills

The Benefits of Car Loan Prequalification in Halton Hills

Auto loan prequalification is for when you’re first exploring your auto loan options. It’s a useful tool for working out whether you can afford the loan and whether you’re likely to qualify for it. It isn’t preapproval but it’s close. We asked our Halton Hills auto loans team to outline some of the key benefits of car loan prequalification.


Halton Hills auto loan prequalification


For the vast majority of readers, the main thing you know about prequalification is the junk mail telling you that you’re prequalified for a loan or credit card. This is the same but you’re controlling things rather than being spammed by mass mailers.


There are several key benefits of car loan prequalification, including:


Buy with confidence


Getting prequalified means you have a good idea of your budget, how much you can afford to repay and whether you are likely to be approved for an auto loan or not.


Prequalification isn’t a loan offer like preapproval but it’s a good barometer of what you’re likely to be able to afford and at what rate.


If you get stressed in situations where you don’t know what you can afford or not, prequalification can help with that.


You know for sure how much you have. You can be fairly confident that were you to apply for a Halton Hills auto loan, you would qualify for it and you can be confident that you can go through the whole car buying process without wasting anyone’s time at the end.


Qualified buyer


Some dealerships will divide buyers into ‘shoppers’, those who are just looking at cars and might buy one and ‘qualified buyers’, those with an existing intent to buy.


After you get prequalified, you’re a qualified buyer because you have shown intent and already made a move towards buying the car. You will find you get a lot more time and attention within a dealership because of that.


Unless you come to Car Nation Canada of course, as we treat everyone as family, regardless of whether you’re prequalified or not.


Know your budget


Knowing how much you have to spend can frame the entire car purchase process. You have a fixed budget, you know you can spend up to that amount and not over it.


This helps you make a decision on cars and trims and helps stop you overspending if you’re seduced by a top of the range model you cannot afford.


Soft inquiry only


Auto loan prequalification differs from preapproval in a couple of ways. One, it’s just an estimate of what you could borrow. Preapproval is a loan offer you can use to get the actual loan.


Two, prequalification only uses a soft inquiry on your credit report where preapproval can use hard inquiries. Soft inquiries don’t leave a mark so you can have as many of those as you like. Hard inquiries do leave a mark and can ding your credit score if you use too many of them.


Halton Hills auto loan prequalification is a useful psychological tool that can help in a few ways. Next time you’re in the market for a loan, give it a try and see what a difference it can make!


If you need help or advice on anything to do with auto loans in Halton Hills, contact Car Nation Canada today, we can help!


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