How Buyer Pre-Approval Can Streamline the Sales Process 

Pre-approval for a car loan is a document from a lender stating that the borrower will be approved for a loan up to a certain amount when they need it. Because the borrower completes several steps in the lending process in advance, they won’t need to spend as much time applying for a loan once they find a vehicle to purchase.

Discover how pre-approval for car loans can unlock game-changing benefits for your dealership and streamline your sales process.

You and the Buyer Know Exactly How Much They Can Afford

The loan pre-approval process determines how much a lender would be willing to lend a borrower. When a potential buyer enters your dealership with a pre-approval letter, you know exactly what their hard maximum is, allowing you to focus on vehicles within their budget. 

The potential buyer may still come to you with a budget in mind that is lower than the pre-approval maximum. Your dealership can enjoy some negotiation power when you know the higher limit of their loan pre-approval, even if it is beyond their initial budget planning.

You Won’t Scare Buyers Away With a Complicated Financing Process

Many buyers dread the stressful process of securing financing during a vehicle sale. A buyer who was otherwise ready to purchase a vehicle on your lot may back out once they see the paperwork necessary for financing. 



Encouraging potential buyers to seek pre-approval for a car loan lets them complete much of this process at home or on their own time. The lender will already have their financial information in its system, streamlining the financing process and improving your opportunity to close the sale.

Your Buyers Will Already Be Positioned To Purchase

Completing a pre-approval loan application often mentally prepares potential buyers to purchase a vehicle. They will have already begun the process of buying a car; they simply need to choose a vehicle and complete a few final steps, and they’ll be driving off the lot with a new car. 

Meanwhile, buyers who haven’t sought pre-approval will be in a better position to walk away without making a purchase. They won’t feel they have sunk any time into the endeavor. 

You Can Still Entice Buyers With the Lowest Interest Rates 

Just because a customer has completed loan pre-approval doesn’t mean they have accepted a loan offer. The interest rates available may have changed since their pre-approval. If the customer closes the sale today, you can review the financing offers through your lender and gain negotiating power by offering low interest rates or other favorable terms. 

Maybe the lender a customer sought pre-approval through doesn’t offer the best loan terms. You can still use the maximum loan amount on the pre-approval to inform your sales process and then offer better financing through your own lender. 

You Won’t Waste Time on a Buyer Who Can’t Afford a Purchase

Finally, when a potential buyer has pre-approval, you gain confidence that they can afford to follow through with a sale. You won’t waste time on test drives and negotiations only to find that they can’t actually gain loan approval after a credit check. 

Improve Your Dealership Financing With 1803 Capital Services

Pre-approval for a car loan gives buyers vehicle purchase flexibility and confidence, but it also benefits your dealership. Are you looking to improve your dealer financing? At 1803 Capital, we offer quick approvals and always look for a way to make a deal. Contact us today to learn more.