There are several advantages to getting your auto loan preapproved. In fact, most financial experts now recommend doing so. Why? Primarily, arriving at the dealership with financing already approved leads to greater negotiating leverage. Additionally you can save yourself a lot of time, as you will have to make an extra trip to the finance and insurance manager’s office to work out details.

So how do you get your auto loan preapproved? Many experts now recommend you do so online. There many websites which work with nationwide lender networks to get your auto loan approved the same day you apply for it. Otherwise, you might spend days, weeks, or even months traveling to bad credit car dealerships all over your region of the US, applying over and over, just trying to get your financing approved. This is especially the case if you have bad credit, no credit, or need to buy a car with no money down. After all most dealerships do not approve financing in-house. Rather they work with the preferred network of lenders, many of which are banks or credit unions which will give the time of day to anyone with a credit score below 650.

Another advantage is that some dealers require their buyers give up certain incentives like cashback rebates or current promotions in order to get a lower interest rate. These tactics will obviously not work on you if you walk into the dealership with pre approved auto loans.