Car loan pre-approval is a great first step when you’re buying a vehicle. It will give you confidence and clarity when you start browsing.
However, just a few missteps can lead to confusion, delays or even a denied application later down the track. If you’re applying for pre-approval, here are 5 common mistakes to watch out for and how you can avoid them.
You might know what you want, but pre-approval is about what you can realistically repay. Many people apply for a loan amount that stretches their income too thin, which can lead to a reduced offer or, in some cases, a rejection.
We suggest that you work backwards from an amount you can comfortably repay. If you’re unsure what that number might be, you can use our online calculator or get some help from our crew.
A rushed application with missing documents or inconsistent details can slow things down and raise red flags for lenders. If your income, employment or expenses don’t match what you’ve submitted, pre-approval for your car loan can be delayed or even denied.
Our crew will help you double-check everything before you submit. That includes your income details, living expenses and employment type. To make it even easier and boost your chances of a lightning speed approval, have your ID and payslips ready when we give you a call.
Lenders assess your financial situation at the time you submit your application. If you take on another loan, change jobs or make a large purchase during the pre-approval process, you might throw your application off course. Even a small change can affect your borrowing power.
It’s always best to hold off on any other big moves until your car finance is pre-approved. Nonetheless, if something changes unexpectedly, get in touch with our crew and we’ll help you dodge those financial asteroids.
Don’t count your chickens before they hatch. Pre-approval is a green light to start shopping – not a full guarantee.
The lender still needs to assess the car itself before they grant final approval and if it doesn’t meet their criteria, they may decline to fund the purchase.
Our crew always recommend that you narrow your search to vehicles that are roadworthy, well priced and meet general lending criteria, such as the car not being too old. If you have doubts about a particular car, get in touch with us and we’ll offer a second opinion.
There’s nothing wrong with shopping around, just make sure you don’t submit too many formal loan applications in a short time. Each one shows up on your file and lenders may view multiple recent applications as a risk. In simple terms, too many applications can hurt your credit score.
If you work with a broker (like us!) you get access to 40+ lenders with a single application and won’t trigger any unnecessary credit hits. It’s the surest way to find the best deal out there.
Many buyers rush into pre-approval without fully understanding the process. That can cause delays and disappointment down the line.
Make sure you ask all your questions as early as possible. Knowing how pre-approved car loans work in Australia will help you avoid frustration later.
Getting pre-approval for your car loan is about making the process easier. With a bit of preparation and the right support, you can avoid these common mistakes and set yourself up for a faster, more confident experience.
At Loans Unlimited, crew will get you pre-approved the smart way. They’ll provide you clear advice, quick responses and help you avoid all of the financial space junk.
If you’re looking for a car and would like a pre-approved loan, click ‘Apply Now’ or get in touch with a member of our crew.
