Car Financing Preapproval with CarHub
Posted on February 25, 2021
Car Financing Preapproval with CarHub
Buying a new car can be one of the best experiences of your life. It’s exciting and genuinely fun and the reward that you get when car financing is done right is a safe, reliable and fun car that’ll make the world seem like your oyster.
Nothing could sour this otherwise great experience faster than learning that you aren’t eligible for financing, however. At CarHub, we want to make sure that you never run into that sort of problem in your car buying journey.
The financing process can be a little daunting, so we’ve decided to break down the preapproval process for you.
The Carhub Process:
When the time is right for a new car purchase and you’re about to dive into the financing process, our team of finance professionals can help. We’re able to offer guidance and assist you in the pre-qualification process to make sure that you don’t settle on the car of your dreams just to learn that the bank says it’s a no-go.
1. Remote Interview
The first thing that we’d do is conduct a ten minute interview with you, via telephone or video interface in order to assess your background and your needs. This is a free consultation. We want to get an accurate portrait of you in order to assist you to the best of our abilities.
2. One-Price Store
One thing that you should know: we’re a One-Price Store. That means that you don’t ever have to go through that uncomfortable situation of having to haggle for a better price. We use Live Market Pricing to determine what other similar vehicles with the same options and mileage are going for, and then ensure that we price it right to give you the best value for your money. It’s our promise to make the car-buying process as stress-free as possible.
At CarHub, we offer all of the major banks and lenders as sources for your financing needs. No need to shop around, we’ll work with all of the financing sources possible to find the best fit for you. This includes B lenders, who make it easier for people who have been through bankruptcy or had similar financial difficulties to apply for approval.
4. Do-It-Yourself Preapproval
If you’re a person whose time is sensitive, we offer a do-it-yourself pre-approval process. It’s as simple as filling out an application on the financing page of our website. We’ll contact you to take care of the rest once you’ve got the ball rolling!
5. Hard Inquiry Vs. Soft Inquiry
Also called a ‘hard pull’ and ‘soft pull’, it’s helpful to know the difference between these two items and to understand when and how to utilize them.
Hard Inquiry - A hard inquiry happens when a lender reviews your credit report as a part of their decision-making process in granting you a loan. A hard inquiry appears on your credit report and can affect your credit scores.
Soft Inquiry - If you check your own credit score or if a lender checks your credit score but doesn’t compile a credit report, this is called a soft inquiry. The important point to note is that soft inquiries do not affect your credit score.
Pre-approval vs. Pre-qualification
Pre-approval and pre-qualification are easy to confuse in the financing process. Don’t worry, we’ve broken down the nuances for you.
Pre-approval - a lender has reviewed your credit report, as opposed to just the credit score, in order to determine a loan amount and rate you’re likely to receive. In a pre-approval process, there will be a hard credit inquiry, which could affect your credit score. A pre-approval will make you a ‘cash buyer’ when the transaction happens.
Pre-qualification - This will offer a smaller range of financial information than a pre-approval would. It’s based on your personal and financial information and it is used as an assessment of a loan but does not mean that your loan application will necessarily be granted. In a pre-qualification, the offered rate may change based on a full credit check. The soft inquiry utilized in a pre-qualification would not affect your credit score.
When the time is right for a new vehicle in your life, understanding the nuances of financing can save you a lot of headaches and heartaches. At CarHub, we make the financing process easy and efficient for you. We’ll work with you to establish your credit history and we’ll do everything in our power to ensure that your credit score will remain unaffected by our process.
If you’re in need of financing, make sure that you speak to one of our licenced financing professionals today!