Pre-approval on a motor vehicle loan allows borrowers with more security when shopping for a new or used vehicle.

When it comes to buying a new car, boat, or motorcycle, the uncertainty of not knowing whether you’ll be able to get a loan to finance the purchase can make shopping for a new car or vehicle difficult.

By getting a pre-approved loan for a motor vehicle purchase, you’ll be able to rely on the commitment that the lender has made for lending you a specific loan amount, giving you more certainty when it comes to buying your dream vehicle.

Clear Budgeting

Getting a loan pre-approved provides borrowers with a clear idea of how much funds they have for the purchase, allowing them a realistic budget and narrow down the search for vehicles within their price range. 

Stronger Negotiating Power

Dealerships and car sales agents often take hold of potential buyers with pre-approval in higher regard due to the certainty of their purchasing power, which in turn provides buyers with an advantage during price negotiations.

Faster Loan Processing

As much of the paperwork and financial assessment is done during the preapproval process, the loan can be processed more quickly in order to complete the purchase as compared to a separate application.

How to Get Pre-approval for a Motor Vehicle

  1. Gather documents – required by lenders, including pay slips, bank statements and proof of identity.
  2. Check credit score – a higher credit score will increase your chances of getting pre-approval.
  3. Calculate repayments – find out how much you will be able to comfortably pay during the term of the loan.
  4. Approach lenders – explore different lenders and compare their pre-approval loan terms to find one that suits your budget.
  5. Apply for pre-approval – once you’ve found a lender that meets your preferences, apply for pre-approval.
  6. Wait for approval – lenders will assess your application; if everything is in order, they will issue pre-approval to you including the loan amount and terms.

Explore Motor Vehicle Loans