Pre-approved Car Loan

Pre-approved Car Loan

Getting a pre-approved car loan is one of the best methods to determine your budget when buying a new vehicle. At CarClarity, we can match your current financial position to one of the loans offered by forty lenders. We have developed smart technology to search through and find the ideal loan for your situation. Completing a search on our platform only takes around sixty seconds. After we complete the car loan comparison for you, you’ll see your matches, and then you can apply for that particular car loan.

If you haven’t found the perfect car to buy, a pre-approved car loan will indicate if you’d be successful with your car loan application. Many Australian car loans will need to know the details of the vehicle you’re purchasing if you’re asking for a secured car loan. If you’re seeking an unsecured personal car loan, you can still get pre-approved before you start looking for that perfect vehicle.

When should I opt for a pre-approved car loan?

Getting a pre-approved car loan is best when you’re serious about buying a vehicle. Everyone likes to look now and then, and we can all fantasise about that dream car! But, when you’re getting ready to look at a vehicle with the intent to make an offer, you should consider getting a pre-approved car loan.

Having a pre-approved loan will give you a clear indication of the amount of money you have available. If you start looking for a car without knowing how much you can borrow, it can be challenging to limit your vehicle choices. But, with a pre-approved loan, you’ll know precisely what you can afford and your monthly payments. Having the loan pre-approved will guide you and stop you from spending more than you can comfortably afford.

Get pre-approved at CarClarity by simply completing an easy online application process that matches you to multiple lenders, allowing you to compare and get a better loan.

Does pre-approval guarantee a car loan?

A pre-approval loan is often granted before all the documents required for the loan are available and thoroughly checked. Pre-approval means that the lender is willing to provide you with a loan if all the information you provided is accurate.

You can consider a pre-approved loan as a conditional loan, where provided all your documents are accurate and nothing changes in your current financial situation, your loan should be approved. Only after the lender and a credit check have verified your documents are completed will you be offered unconditional approval, and the funds can be made available to you. You can usually take a pre-approved loan as a good sign that your loan will be approved, but nothing is guaranteed until the documents are signed and finalised.

What are the benefits of pre-approved car finance?

Many people get excited when buying a vehicle and forget about shopping around for the right loan. For example, if you visit a car dealer and look at the cars for sale in their yard, you may fall in love with a vehicle but aren’t sure if you can afford it. Many dealers will have an affiliated lender who can help process your application on the spot. But the loans being offered may not always be the best for your financial situation, and a refinancing car loan could be costly if there are early loan payout fees.

Finding the right finance for a car loan for your situation is best sorted out before you consider buying a new vehicle. Comparing loans can be challenging as many lenders offer loans in Australia. In many cases, the lender with the most significant advertising budget is not necessarily the best car loan for you.  

At CarClarity, you can simply enter your details, such as your current income, your desired loan term and the amount you’d like to borrow, and we can search through our forty lenders to find one that matches your financial situation. In sixty seconds, we’ll have a match for you, and if you like the loan on offer, you can apply for a pre-approved car loan through that lender.

Having pre-approved loans means you’ve taken an active choice for the lender you’d like to work with over the length of the loan. You won’t get talked into a loan at the dealership, especially as these are often more beneficial for the dealer and not you. Pre-approval on a car loan will also give you a clear budget, and you won’t be tempted to go over that amount.

Will getting a pre-approved auto loan affect my credit?

Applying for a pre-approval car loan will not usually affect your credit score. However, applying for a car loan with many different lenders can affect your credit score. When you apply for a car loan or any loan (including credit cards), the lender will access your credit report. Unfortunately, when your credit report is accessed, a note is entered, and if many lenders access your report in a short amount of time, it can be seen as a sign of poor credit.

There are some ways around this problem, and using CarClarity is one of them. At CarClarity, we only complete a soft credit check, which does not involve checking your credit score. A soft credit check will examine your financial situation based only on the information you provide, and then we’ll match you with a lender that will likely approve your loan request.  

Only when you apply for the loan with your matched lender will they access your credit score and determine if you’re suitable for a pre-approved car loan.

If you’re concerned about applying for a loan affecting your credit score, CarClarity is an excellent option to compare car loans in Australia. Start your search today and find the best loan possible for your situation out of the forty lenders we recommend. Search today!