auto · 5 MIN
Auto loan pre-approval explained
Why shopping financing before the dealership can save money.
Know your rate before the lot
A pre-approval gives you a benchmark. Dealership financing can be convenient—but you negotiate from strength when you already know a competitive APR.
New vs used loan differences
Used cars often carry higher rates and shorter terms. Factor total interest, not only monthly payment.
Watch for add-ons
Extended warranties, GAP, and paint protection can be rolled into the loan. Decline products you do not want before signing.
FAQ
Does pre-approval hurt my credit?
Soft pulls usually do not affect scores; hard pulls may. Ask the lender which type they use and group applications into a short shopping window.
Related offers
We may earn a commission from partner links.
Auto refinance check
See if a lower APR could cut your car payment without changing cars.
Check auto refi →New & used auto loan options
Compare dealer vs bank vs online lenders before you sign at the lot.
Compare auto loans →