Heading to the car dealership to kick a few tires and browse at vehicles is always fun whether you’re serious about purchasing or not. But for those who need to make decisions quickly, doing the right homework before heading to the dealership is something all of us have in common. It means we’ve taken the time to prepare ourselves for the discussions we need to have to make a sound financial decision. When you know what you want, and you know what you can afford, the process is much more enjoyable – you’re buying a vehicle after all.
When you want to walk away from the dealership with your new keys in hand, pre-approved financing is the best way to ensure that your financial ducks are in a row to capitalize on a great opportunity when the time arises. Leaving financial approval until the last minute could mean missing out on the perfect deal for your business.
Pre-approved vehicle financing is a beneficial bargaining chip for business owners trying to solidify a low interest rate when shopping for a new fleet of company cars, single luxury rental units, or updated models. While shopping for pre-approval rates may not be as fun as test-driving a shiny new ride, it’s imperative if you’re going to secure the best loan/lease possible.
What is Pre-approved Vehicle Financing?
Just as you would get pre-approved for a mortgage when you start looking to purchase property, getting pre-approval for a vehicle purchase should be your first step. Pre-approved financing means you’ve actively researched the automotive interest loan market so you can be as prepared as possible when entering into negotiations with a dealership. Pre-approval means you’ve done your homework, you know what you’ve been approved for, and you have a great idea of what kinds of interest rates are available in the current market. In short, pre-approval helps eliminate the possibility of agreeing to a much higher rate than necessary.
Pre-approval means you have the ability to negotiate with dealerships to secure the best rates possible, and custom tailor your loan/lease structure to benefit your personal or business needs.
What are the Benefits of Pre-Approval?
The benefits of pre-approval are vast, and seemingly unlimited. Pre-approval provides confidence, knowledge and background when entering the auto market to investigate a large purchase that can easily impact and shape your organizational structure and success.
First and foremost, perhaps the most obvious advantage to pre-approval is a better interest rate. By being able to cross-compare a few interest rate quotes from lenders, which our financing tool allows you to do, you’re able to gauge what constitutes a good deal, and when you’re paying too much. Why are we telling you this? Because we know that Travelers will give you the best off.
Second is knowing how much you can literally afford to spend when making your purchase(s). Having a realistic budget, both total and monthly, helps you and your company to see past perceived sales pitches and make better financial decisions. Knowing how much you can afford to spend and how much the loan will cost you over time allows you to focus on vehicles in your price range without being easily seduced by additional features, more expensive models, etc.
In the end, having vehicle pre-approval allows you to enjoy the shopping experience without a potentially surprising financial discussion looming over your head. You’ll be able to concentrate on what’s best for your business, because you’ll know what your business can afford and use with confidence. At the end of the day, pre-approved vehicle financing is your best tool for securing the best deal.