Why You Should Get Loan Approval Before Going Car Shopping

BFG gives you the benefits of getting a loan approval before buying a car

Getting a new or used car loan approval before going car shopping is a step that offers most consumers a great deal of benefits. It offers a chance to eliminate the stress and frustration that comes with the car shopping experience, while also offering an opportunity to get even better terms than would otherwise be available.

Here's a quick guide to the top benefits and reasons to get loan approval before ever stepping foot in a dealership.

  1. Know What's Affordable from the Start: With a pre-approval for a used or new car loan, consumers know right from the start what's affordable for them. There's no guessing game at the dealer, and there's no getting wrapped into a deal that really isn't workable financially.

  2. Outside Lenders Typically Offer Lower Rates: While this may not always be the case, in the majority of situations, an outside lender, like BFG Federal Credit Union, will be able to offer a superior rate on an auto loan. The dealer may even try to sneak in a higher interest rate, claiming it's the best they can do, while they sit back and enjoy the extra profits that come with the higher rate.

  3. Focus on the Price: With auto loan pre-approval, consumers can focus on one single point, which is most important, the actual total price tag of the car they're purchasing. The payment terms and financing have already been arranged, and so the dealer isn't trying to negotiate with those; and the consumer doesn't have to worry about all of these logistics and negotiating points.

  4. No Bad Tradeoffs: Sometimes dealers offer consumers 0% financing deals with a new or used car loan. This seems great on the surface, but in many instances, it wipes out available rebates and incentives. With a low interest auto loan from an outside lender, consumers don't have to make any such tradeoff, and they'll receive the best possible total cost of a vehicle.

  5. Operate as a Cash Buyer: Cash buyers have the upper hand at the dealership. They determine what they will pay for a car, because they have the cash to pay for it immediately . It puts the dealer in a position of wanting to make a deal, and not being able to create as much leverage on their end with the price.

Clearly, obtaining approval for an auto loan before going to the dealer is a wise decision, with numerous advantages. At BFG Federal Credit Union, consumers can receive fantastic rates on a used or new car loan, as low as 1.99% APR, and receive the expertise, service and reputation of a trusted community credit union serving the local region with offices in Akron and Hudson, and serving all of Summit County, Ohio.

Learn more about BFG and see their latest low auto loan rates at BFGFCU.org.