Know the lingo of car financing before you buy: compare pre-approval vs pre-qualification

When you're ready to buy a new or used car, you're more than likely one of the millions of drivers every year who choose to finance, rather than paying cash. While it's very cost-efficient to be able to slap down thousands of dollars for your new or pre-owned vehicle, a majority of buyers prefer the convenience of a low monthly payment and the ability to budget smarter.

But before you can secure financing, you'll need to get approved... but should you seek pre-approval, or should you try to pre-qualify for credit first?

Whichever option you end up choosing, the experts in our financing center will be there to walk you through the process, making things as simple and intuitive as possible, and helping you to get the best deals and rates.

Explore getting pre-approved for credit vs pre-qualifying for credit:

Credit pre-approval: pre-approval requires credit history, and a run of your report--while this will count as a very minor hit on your credit, it also gives you the absolute most accurate estimate of what kind of lease or loan you'll be able to finance.

Credit pre-approval: this option is credit-check-free, which can be comforting for drivers who are unsure of their score or who have a thin history; this is a less accurate way of estimating your approved lending, though, so if you're ready to buy, this may not be the best option for you.

Categories: Finance, Tips

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