It can be tempting to dive straight into the deep end when you’re ready to buy a car. After all, the fun part is browsing listings to find the make, model, bells and whistles that stand out to you. Who wants to think about paperwork?
But if you’re looking to finance your next vehicle, timing and planning matter. One of the most common questions we hear is: ‘Should I get pre-approved before or after I find my car?’
The short answer is that you can do either, but getting a pre-approval for your car loan often makes things easier. That said, there’s no one-size-fits-all all rule, so here’s a breakdown of what might work for your situation.
Pre-approval assesses your income, credit profile and other financial details to give you a realistic idea of how much you can borrow. This helps you narrow your search to cars you know you can afford – not the ones that look affordable on paper.
Pre-approved car finance also helps you create a financial plan. With a firm grasp of what your repayments might look like, you won’t be caught off guard later
The car market moves fast, especially when it comes to popular models and private sales. Securing a pre-approval for your car loan means you’ve already cleared the first hurdle. When the right car pops up, you’ll be be able to move fast without getting stuck in orbit waiting for finance.
For buyers in Australia, a pre-approved car loan flips that dynamic. You know your loan limit upfront, so you can negotiate based on the total price of the car, not just what the repayments look like. That clarity will let you purchase with confidence and stop sellers from sneaking in unnecessary extras.
With pre-approval in hand you’re a ready-to-go buyer – and sellers like that. Whether you’re at a dealership or opting for a private sale, they’ll be more likely to take you seriously and present you a better offer. You’ll also feel more confident at the negotiation table knowing that you have car finance is pre-approved.
Some people come to us because they’ve already found the car they want to buy – and that’s totally fine! If you’ve done your research and found a good deal, we can help you get the finance sorted with one of our 40+ lenders. And as long as you’ve got all of your documents ready and keep in contact with our crew, your approval will be lightning fast.
Pre-approval might be a great negotiating tool, but it’s not a full loan approval. The lender still has to assess the car itself (including its age, condition, and sale price) before giving the final sign off.
Knowing that their loan may still be denied, some buyers choose to skip pre-approval. If you’ve already found a car you like, don’t be afraid to check in with us to make sure it fits most lenders’ criteria.
You sure can! In fact, many buyers start with pre-approval to get an idea of their borrowing power and then go car shopping. Others do it the other way round, coming to us later on to secure finance for the car they’ve already found.
At Loans Unlimited, our crew can help you apply for pre-approval with or without a car in mind. If you’re still browsing, we’ll process your application based on your general budget. If you’ve already found something, we’ll structure the finance to suit that vehicle.
If you’re in the early stages of your search and want to avoid wasting time on cars outside of your budget, getting pre-approved first is the right option for you. It gives you a clear budget, speeds up the process and helps you avoid any financial asteroids.
But if you’ve already spotted the car you want, don’t stress. As long as the vehicle meets lending criteria, we can still help you get fair and reasonable finance arranged in quick time.
There’s no wrong way to start the car buying process – but there is a better way to plan.
Whether you’re still browsing listings or already have your dream car picked out, Loans Unlimited makes provides fast, simple car financing suited to how you shop. With connections to over 40 lenders across the galaxy, we’ll find online, pre-approved car finance that works for you.
Ready to lift-off toward your financial dreams? Click ‘Apply Now’ to start your loan application with or without a car in mind.
