- November 2024
- Premier America
Congratulations! You've taken a significant step toward buying your next vehicle by getting pre-approved for an auto loan. This pre-approval gives you a clear picture of your budget, an interest rate you can work with, and stronger negotiating power with dealerships. Now that you're pre-approved, you might be wondering, “What’s next?”
Here’s a step-by-step guide on what to do after receiving your auto loan pre-approval:
1. Review Your Pre-Approval Terms
Before you start shopping for a car, take a close look at the terms of your pre-approval. Understand the following:
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Loan Amount: Your pre-approval will specify the maximum amount you're eligible to borrow. Use this as your upper limit when shopping for vehicles.
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Interest Rate: Review the interest rate offered and compare it to current market rates. Keep in mind that this rate is typically locked in for a limited time.
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Loan Term: Check the repayment period (e.g., 36 months, 60 months) to see what works best for your budget.
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Expiration Date: Pre-approvals typically have a validity period, usually 30-60 days. Make sure you know how much time you have to use the pre-approval before it expires.
Understanding these details ensures you're fully prepared as you move forward.
2. Set Your Car Budget
With your pre-approval in hand, you can create a more precise budget for your car purchase. Remember, just because you’re approved for a certain amount doesn’t mean you need to spend it all. Factor in the following when setting your car budget:
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Down Payment: Consider how much you plan to put down upfront. A larger down payment can reduce your monthly payments.
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Sales Tax and Fees: Don’t forget to account for additional costs such as taxes, registration, and dealer fees.
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Insurance: Check how much your insurance will be for the vehicle you're considering, as this will affect your monthly expenses. Consider insuring your vehicle through Premier America. We offer competitive rates and can help you save money. Plus, if you choose Premier America's auto insurance, you'll receive a 0.25% discount on your new auto loan. Learn more.
By keeping these factors in mind, you can avoid stretching your budget too thin and ensure that your auto loan fits comfortably within your overall financial plan.
3. Shop Around for the Best Vehicle
Now comes the fun part—finding the perfect car! With your pre-approval in place, you're ready to start shopping. Here are some tips:
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New or Used: Decide whether you're looking for a new or used vehicle. Many pre-approvals can be used for both, but it’s good to confirm this with your lender.
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Vehicle Features: Consider what features are most important to you—whether it’s safety, fuel efficiency, or technology—and narrow down your options.
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Car Dealership or Private Seller: Pre-approvals are typically valid for dealerships, but it’s a good idea to confirm with your credit union if you’re considering buying from a private seller.
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Drive-Wise: As a Premier America member, you can take advantage of Drive-Wise. With Drive Wise, you can access expert guidance to find the best deals on both new and used vehicles, ensuring a hassle-free experience. Learn more.
Take your time comparing different models and prices to make sure you get the best deal.
4. Negotiate Like a Pro
Because you’re pre-approved, you're walking into the dealership with financing already in place. This puts you in a stronger position to negotiate. Use this to your advantage:
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Leverage Your Pre-Approval: Let the dealer know you're pre-approved and ready to buy, but keep the terms of your loan private until you’ve negotiated the car price.
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Negotiate the Price, Not the Payment: Focus on getting the best overall price for the vehicle, rather than getting drawn into discussions about monthly payments.
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Check for Dealer Incentives: Dealers often offer special promotions, rebates, or lower financing rates. While you’re pre-approved with your credit union, don’t hesitate to ask if the dealer’s offer is better.
5. Finalize the Loan and Close the Deal
Once you've selected your vehicle and negotiated the price, it's time to finalize your loan and complete the purchase. Here’s what happens next:
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Submit Vehicle Details to Premier America: Provide Premier America with the details of the vehicle you’re purchasing, including the final sale price, make, model, and VIN number.
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Sign the Loan Documents: Premier America will finalize the loan agreement, and you'll sign the necessary paperwork. Review everything carefully to ensure all the details match what was discussed.
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Insurance and Registration: Before driving off the lot, make sure your insurance is in place and that the vehicle is properly registered.
6. Start Making Payments
Once the deal is closed, your loan officially begins. Your credit union will provide you with details on your payment schedule. Here’s what to keep in mind:
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Set Up Automatic Payments: Premier America offers a 0.25% discount on your loan when you enroll in auto pay from a Premier America account. This helps you avoid missed payments and save money each month.
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Monitor Your Loan: Keep track of your loan balance and make sure you're comfortable with the monthly payments. If your financial situation changes, reach out to your lender to explore options like refinancing or adjusting your payment plan.
7. Enjoy Your New Ride!
Now that you’ve secured your auto loan and finalized the purchase, it’s time to hit the road! Enjoy the freedom of your new vehicle, knowing that you made smart financial decisions along the way.
Ready to Get Started?
If you're pre-approved for an auto loan through our credit union, you're already well on your way to driving home in the car of your dreams. If you have any questions or need help with the next steps, don't hesitate to reach out to our team—we're here to help you every step of the way.
How do I Check for a Pre-Approval?
If you want to see if you’ve been pre-approved for any of our Premier America products, log in to Online Banking and navigate to My Offers. Or call us at 866-410-0171 and check if you’ve been pre-approved!