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Should I apply for a car loan before buying a car?
I'm in desperate need of a new car. I'll need a loan, but I'm not sure what order to go in. Should I apply for a car loan before I buy my car?
Lauren Smith · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
“Getting a new car is exciting, and there are several benefits to applying for a
car loan
before finding a vehicle.One benefit is it changes the type of buyer you are. You can provide an exact amount to the dealership based on your preapproval amount. This can save you from common problems people have at dealerships. Since you only have so much to spend, they can’t try to sell you more.
Another benefit is you’ll get a heads up on any issues. Applying or getting preapproved for a loan can be difficult, so knowing in advance can help you challenge and correct things on your credit report that are incorrect.
It can also help you budget as you’ll know exactly what you have to spend. Doing this in advance is far less stressful, instead of realizing there’s a problem when you attempt to buy the car first.
Along with applying for a car loan in advance, look at your
car insurance
options as well. Most lenders require that financed vehicles carry full coverage, so you’ll want to shop around to find the best rate. An easy way to do this is with the
Jerry
app. Jerry collects quotes from top insurance providers to find the best rates and coverage in seconds!”View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
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