🏎️ Is It Smarter to Get Pre-Approved Before You Even Test Drive?

“Walking into a dealership without financing is like showing up to a poker game with Uno cards. 🎴” - Chase Jordan

Think Test Driving Comes First?

Think Again.

Most people think the car search starts with test driving… but if you’re financing your next ride, that’s actually step three. 😬

Step one?

Getting pre-approved if you need financing.

Because once the dealership controls the financing, they control the whole game—and your wallet ends up on the losing end.

Let’s break down why smart shoppers (the kind that don’t get taken for a ride 🚗💨) always get financing lined up first.

Step 1: 🏦 Why Pre-Approval = Negotiation Power

Getting pre-approved means you walk into the dealership with money already on the table—from a bank or credit union that’s already said, “Yep, we’ll lend you up to this amount, at this rate.”

It’s like shopping with a loaded gift card.

You’ve got the budget, you’ve got the confidence, and you’re not playing their finance games.

✅ Your move:

• Check with 2–3 banks or credit unions

• Ask for your “out-the-door” loan amount, not just the car price so the bank has specifics

• Know your rate, term, and max budget before you shop

Step 2: 😈 Dealers Mark Up Interest Rates.

A Lot and Often!

Here’s a dirty little industry trick: the dealer gets a lower interest rate from a bank (AKA The Buy Rate), but they don’t pass it on to you.

Instead, they mark it up and keep the difference as pure profit.

Sometimes called a "Buy Rate" or “dealer reserve,” and it could cost you thousands over the life of the loan. 😡

✅ Your move: If you’re already pre-approved, you can say:

“I already have financing at 5.4%. Can you help me match that?”

Boom.

Now you have the leverage. 💪

Step 3: 💸 Pre-Approval Keeps the Math Honest

Without your own financing, the dealership controls everything:

• The car price

• The interest rate

• The loan term

• The trade-in value

• The monthly payment

They’ll shuffle those numbers around faster than a Vegas blackjack dealer.

But if you’ve got pre-approval, it locks the financing piece, making it way easier to focus on negotiating the car.

✅ Your move:

Break the deal into parts.

Lock in your rate. Then go after price.

Step 4: 🛑 Don’t Let Them Guilt You into Using Their Financing

Some salespeople will say stuff like:

“If you finance with us, we can knock $1,000 off.”
Or:
“Your pre-approval might fall through. Ours is guaranteed.”

🚨 🚩 Red flag city.

✅ Your move:
Say:

“Thanks, but I’m sticking with my pre-approval unless you can beat the rate and terms in writing.”

No games.

Just business.

I appreciate you! 😎

Step 5: 📉 Avoid Hard Credit Inquiries Until You’re Ready

When a dealership shops you around for financing, they often shotgun your credit to a dozen lenders at once—ding ding ding, your score takes a hit.

✅ Your move:

• Apply only with 2–3 lenders

• Submit all apps within a 14-day window (credit bureaus treat it as one inquiry)

• Don’t authorize the dealer until you approve the deal

Step 6: 🧠 (⚡️) Save Time, Stress, and Embarrassment

Nobody wants to fall in love with a $60K SUV… and then find out they only qualify for $27K. 😬

Pre-approval keeps you in your actual budget and helps you avoid awkward moments at the desk.

✅ Your move: Use your pre-approval as your budget ceiling, not just your loan limit.

Final Thoughts from Chase 🚗

Most people walk into the dealership upside-down.

Not in their trade—but in their process.

They drive first, fall in love, and then hope the numbers work.

But the smartest shoppers get their money lined up first. It’s how you stay in control and avoid being “sold” into a deal that’s all wrong for your wallet.

If that all sounds like a lot… it’s because it is.

At Deal Guard, we act as your car buying concierge, handling every step—yes, including pre-approvals—to make sure you’re always in the driver’s seat.

⚡️ Want the best deal without the stress?

👉 Visit GETDEALGUARD.COM and let a car buying consultant handle it all for you.