If you shop for a car before you have investigated financing, you might not be as ready for your purchase as you believe. Automobiles are a significant investment, and smart shoppers consider all elements of the purchase before they purchase.
Conventional car-buying is, for the majority of us, a comfortable procedure. Auto Loan Pre approval, typically start with a rough idea of what we’re looking for and where we could find it. We see a few dealerships which stock the models we are interested in, read a few brochures, check out a few reviews and make a choice. From there it’s only a matter of a fast price negotiation and some paperwork, right?
Car financing does not have to be frustrating and time consuming. With Auto Loan pre-approved funding from Nationwide, you fund before you purchase, saving you money and time on your next car loan payment.
Most dealerships and car lots provide financing, but a lot of car buyers do not realize that these dealerships are not just offering funding in house for your convenience. Car dealers also earn money on the funding, and the amount they make gains when they charge a higher rate of interest than the one that you qualify for.
What’s dealer reserve?
If the loan is approved, the lender responds to the dealership with a risk-based “buy-rate” – “the minimum rate of interest where the lender is prepared to buy the retail installment sales contract executed by the customer for the purchase of the car”
Some third-party lenders make it possible for traders to mark up the fee billed to the buyer over the buy rate. The lender then pays the dealer a lump sum payment as reimbursement for the extra interest that the lender will accumulate over the life span of the loan. Lenders refer to these payments as “book” or “involvement,” and the net result is that the customer ends up paying a higher rate of interest than he or she qualifies for.1
All shoppers understand the value of searching for the best possible deal on a car, but many do not understand the value of securing the best possible deal on the funding for your car. With a pre-approved car loan from Nationwide, you can secure financing before you purchase – ensuring that you don’t pay a higher rate than you qualify for. Getting pre-approved for a auto loan puts you in the driver’s seat – literally and figuratively. With pre-approved financing, it is possible to appear at the auto dealership feeling confident and ready. After you’ve negotiated a reasonable price for a car you prefer, you will be out of the dealership very quickly.
The Way to get pre-approved
The first step to getting a pre-approved car loan is submitting an application.
Once you’re pre-approved, we will provide easy instructions for finalizing the purchase at the dealership. Your pre-approval will be valid for thirty days, so you have loads of time to compare vehicles.