3 Reasons to Get Pre-Approved Before Buying a Car - Money Tip Tuesday

President’s Day is right around the corner, which means if you’re shopping for a car, you’re in luck! Dealerships across the country offer discounts for the President’s Day weekend, sometimes extending them for a week or more. If you’re planning on shopping these deals, now’s the chance to head to the dealership with confidence and a pre-approval.   Links: Get a great on your next pre-approval with Triangle Check out TCU University for financial education tips and resources! Follow us on Facebook, Instagram and Twitter! Learn more about Triangle Credit Union Transcript: Typically, Presidents’ Day sales are the first official sales events of the year. While this makes sense for dealerships experiencing a slump in auto sales during the cold winter months, this is also the perfect time for consumers who have recovered from the holiday season.   If you’re on the hunt for an auto deal this President’s Day, consider getting preapproved for an auto loan before setting foot into an auto dealership.   Stay on Budget Staying on budget is essential during the car-buying process. Before applying for an auto loan, you must outline your budget to make sure you have a clear understanding of how much you can afford.   Once you know how much you can afford, a preapproval is an extra step you can take to ensure you stay on budget, helping you go into the car-buying process as prepared as possible.  Save Time at The Dealership We’ve probably all been there. You go to the dealership expecting to test-drive a car, and the next thing you know, it’s been 3 hours, and you’re sitting in an office waiting for paperwork.   Wouldn’t it be nice if you could cut that time down so you can spend less time at the dealership and more time doing what YOU want?    If you go to the dealership with a preapproval in hand, you won’t have to sit there while they run your credit and search for auto loan rates, which saves you time in the end.   Avoid Dealership Upsells Another benefit of shopping for a car with a preapproval is being able to avoid dealer upsells and add-ons. A typical dealer tactic is to push buyers to sign up for extended warranties or other add-ons they typically aren’t interested in.     With a preapproval, you have a designated amount you are approved for; therefore, when dealers approach you with all the extras, you can shut it down by saying those extras do not fit within your approved amount.   What You Need to Get Preapproved  If you’re interested in getting preapproved before shopping for a car, here is what you should have prepared:   Personal Information: Name, date of birth, Social Security number Housing Details: Address, how long you’ve lived at that address, monthly housing payment, information on whether you rent or own  Income: Employment status, employer’s name, gross annual income Loan Details: Desired loan amount, desired length of loan Trade-in or Down Payment: Title and registration if trading in a vehicle or the amount of the down payment If you’re on the hunt for a new or used car, now’s the time to start out strong with a pre-approval. We offer many affordable financing options and our competitive auto rates are here to help.   If there are any other tips or topics you would like us to cover, let us know at [email protected]. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.   Thanks for listening to today’s Money Tip Tuesday and check out our other tips and episodes on the Making Money Personal podcast.   Have a great day!