Accelerate your purchasing experience, with a pre-approved motor vehicle loan.

Whether you’re borrowing for a car, bike, boat or caravan, learn what pre-approval is, before u loan.

What is a pre-approved motor vehicle loan?

A pre-approved motor vehicle loan is essentially a lender's commitment to provide you with a specific loan amount before you go shopping for your dream vehicle. Pre-approval allows you to set a clear budget and adds a layer of confidence to your negotiations at the dealership.

Getting pre-approval for a car loan is a straightforward process:

  1. Check your credit – Review your credit report to ensure it's in good shape. A strong credit profile increases your chances of securing pre-approval.
  2. Set a budget – Determine how much you're willing to borrow and repay each month. This will help you identify the right loan amount during the pre-approval process.
  3. Choose a lender – Shop around and choose a lender that offers pre-approval for motor vehicle loans. A finance broker can simplify this step by comparing lenders on your behalf.
  4. Complete the application – Fill out the application provided by the lender, which typically includes personal, financial, and employment information.
  5. Provide documentation – Submit the necessary documentation, which may include pay stubs, bank statements, and proof of identity.
  6. Wait for approval – The lender will review your application and documentation. If everything checks out, you'll receive a pre-approval letter detailing the loan terms and amount.

To secure pre-approval for a motor vehicle loan, you'll typically need:

  • Proof of identity (e.g., driver's license or passport)
  • Proof of income (e.g., pay stubs or tax returns)
  • Proof of residence (e.g., utility bills or lease agreement)
  • Bank statements
  • Vehicle information (if applicable)

Getting pre-approval for a motor vehicle loan isn't typically difficult, especially if you have a good credit history and stable income. However, lenders may have specific requirements, so it's essential to choose the right lender that matches your financial profile.

Does car loan pre-approval affect credit score in Australia?

Applying for pre-approval usually involves a soft credit inquiry, which doesn't impact your credit score. It's when you formally apply for the loan that a hard credit inquiry is made, which can have a slight effect on your credit score. However, this is typically minor and temporary.

How long does it take to get a preapproved loan?

The timeframe for receiving pre-approval can vary. In some cases, you may get a response within minutes, while others may take a few days. It's a good idea to start the pre-approval process well in advance of your vehicle purchase to ensure you have enough time to make an informed decision.

Who can help me get pre-approval?

  • Self-service – You can navigate the pre-approval process yourself, researching lenders, filling out applications, and gathering necessary documentation.
  • Finance broker – A finance broker can be your expert guide through the pre-approval process. They'll compare lenders and streamline the application, saving you time and potentially securing the best terms.
  • Lender assistance – Many lenders offer assistance for pre-approval. It's worth noting though that lenders will only offer you their own loan products, regardless of whether there is a better option out there for you.

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