What Does it Mean to Prequalify for a Car Loan in New Jersey?

3/27/2017

Buying a car is an exciting experience, but it can also be a little confusing, especially when it comes to financing. Our New Jersey car dealership works to make the process of financing as simple, streamlined, and stress-free as possible by offering our customers the opportunity to find out whether they prequalify for an auto loan. All it takes is a quick questionnaire, and you’re on your way to driving the car of your dreams. But what does getting prequalified actually mean? How is it different from getting preapproved? And why are both important when you’re shopping for a used vehicle in New Jersey?   

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What is the Difference Between Being Preapproved and Prequalified for an Auto Loan?  

Being preapproved or prequalified for an auto loan is good news for the buyer, because it means a lender is more likely to give the person a loan. However, while both preapproval and prequalification are positive steps toward getting your dream car, there are important distinctions between these often-confused terms. Let’s examine each in closer detail to see how they are different.  

If you are prequalified for a loan, it means that a lender has determined you to be a suitable candidate for a loan based on your financial information, such as your assets, your debts, your income, and your credit score. (If you’re worried about a poor credit score, a few tips for improving your credit score include paying your monthly bills on time, paying off debt immediately, and avoiding applying for credit cards you don’t actually need.) It’s vital to understand that getting prequalified does not mean you have actually been approved for the loan, simply that there is a good likelihood you may qualify when you apply. You must apply for a loan in order for a loan to be granted, even if you have been prequalified.  

At Apollo Auto, we make prequalifying for a used vehicle as easy as clicking your mouse. All you have to do is click the “Get Prequalified” link on your favorite model in our wide selection of quality preowned vehicles. While our selection is always changing and expanding, shoppers browsing our selection can see if they prequalify for a Chevrolet, Chrysler, Dodge, Ford, Honda, Kia, Lexus, Mazda, Nissan, Toyota, Volkswagen, or other type of vehicle in a matter of minutes. All you have to do is enter some basic information, such as your address and the type of car, truck, or SUV you’re interested in purchasing, into our easy online prequalification form. Best of all, it won’t negatively impact your credit score, so there’s no risk in checking. Plus, our friendly and knowledgeable team is always there to help answer your questions and explain any information you need to know about financing.  

Prequalifying for an auto loan is not the same as getting preapproved for an auto loan. If you are preapproved for a car loan, it means a lender has reviewed your financial information and determined the approximate amount it may lend you if you are approved after applying for a loan. A preapproval does not set anything in stone, but gives you a clearer idea of what the tentative terms of a loan might look like. That can help you narrow down your search and set the budget you’d like to stick to.  

Numerous lenders throughout New Jersey offer auto loans, many at low rates. Credit Union of New Jersey (CUNJ), Bank of America, AAA, South Jersey Federal Credit Union, and Wells Fargo are just a few examples. 

As a final word of advice, whenever you’re preparing to make a major purchase, such as a used vehicle, it’s a good idea to check your credit report beforehand in order to ensure that the information it contains is all accurate and up-to-date. Once every year, you can request one free copy of your credit report from each of the three major credit bureaus: TransUnion, Equifax, and Experian. To order a free copy of your credit report, you can call (877) 322-8228, or simply visit annualcreditreport (dot) com to request a copy online.  

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Prequalify for a Vehicle at Our NJ Used Car Dealership 

Are you ready to buy a car in New Jersey? Are you trying to sell your car in New Jersey? Or maybe you’re interested in ordering parts, or having some repairs made to your vehicle, such as body work or engine repairs? Whether you’re looking to sell, buy, trade in, or simply get a quick tune-up or oil change, Apollo Auto offers a wide array of automotive sales and services in a convenient location at unbeatable prices. Located close to Cherry Hill and Philadelphia in Sewell, NJ, Apollo Auto is New Jersey’s resource for quality pre-owned vehicles and auto repairs.  

If you’d like to learn more about the car parts or vehicle repair services we offer, call our service line at (856) 347-5091. Or, if you’re more interested in buying a vehicle, call our sales line at (856) 347-5091. Whatever you may be looking for, our skilled car experts are happy to help however we can. 

360° Inspection

Our used cars undergo a top-to-bottom certification

LIKE IT? DRIVE OUT WITH IT

Our process is so simple, most customers drive their new car out the same day

3k3 Warranty

3 month, 3k mile comprehensive warranty on all used cars