The decision to find a new or quality pre-owned vehicle is not something to be taken lightly. At Jake Sweeney Chrysler Dodge Jeep® RAM, we can help you figure out how to pay for it, which can start with finding out how to pre-qualify for an auto loan.
First, let’s take a look at your financing options.
What is Financing?
Financing refers to the act of taking out a loan to pay for a new car. There are a few different routes you can take to accomplish this.
What Are My Options?
Your two main options for financing a vehicle are direct lending or dealership financing. With direct lending, you will borrow the money directly from a bank, credit union, or finance company. If you choose the dealership financing route, you will secure the auto loan through the dealership itself.
A prospective buyer enters into a contract to buy the car over time, according to a previously agreed-upon monthly payment plan. The dealer usually sells the debt to a third-party finance management company, which is where the buyer’s payments will go.
What Does Pre-Qualify Mean?
You can get pre-approved for a loan, or you can pre-qualify. These terms are often used interchangeably but mean different things. Pre-approval requires a lot of paperwork and includes letting a potential lender access your credit history and setting up a preapproval agreement.
Pre-qualifying is a process you’d go through with a bank or credit union. Submitting a request to prequalify can answer a lot of questions about the veracity of your credit without affecting the credit score (which can happen when your credit history is accessed after an application).
Contact your bank and identify your dealership. With a prequalification in hand, you could be in a good position to negotiate.
Contact Jake Sweeney Chrysler Dodge Jeep RAM
When you’re ready to take a test drive, visit our friendly professionals. For more questions or to start the pre-approval process, contact Jake Sweeney Chrysler Dodge Jeep RAM today!
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